BJ's Wholesale, ChargePoint, Zoom: Trending Tickers
BJ's Wholesale Club (BJ) reported third-quarter earnings, revealing a drop in same-store sales and its full-year sales outlook citing shifts in consumer behavior and other headwinds. A positive point for the company, however, was a reported acceleration in membership growth and traffic.
ChargePoint (CHPT) reported preliminary third-quarter results, with revenue falling short of expectations, reporting $108-$113 million versus estimates of $150-$165 million, citing pressure on North American markets. The company also announced a shakeup in its C-Suite leadership, making former COO Rick Wilmer the new CEO, as current CEO Pasquale Romano steps down into an advisor role. The company will be moving on to replace its current CFO.
Zoom Video Communications (ZM) stock received an upgrade to "Neutral" from CitiGroup (C) after keeping it at a "Sell" rating for almost a year and a half. Citi cites increased usage from the company but remains cautious as Zoom still faces stiff competition.
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Video Transcript
BRAD SMITH: Let's take a look at how things are shaping up right now, starting with the major averages, they're searching for some direction today as investors hope to keep this week's gains going. We also see mixed quarterly results weighing on stocks a little bit here on the day's activity.
SEANA SMITH: All right, let's take a look at some of those individual movers. First up, big box retailer BJ's reporting a surprise drop in the third quarter same store sales and also cut its full year sales outlook. They cited quote, "shifts in consumer behavior driven by macro headwinds." We're looking at losses of just about 3.5%. Still, though, the retailer saying that it is seeing an acceleration in membership growth in traffic.
BRAD SMITH: All right, also tracking batteries. They seem to be running low for ChargePoint here. The electric vehicle charging equipment maker announced weak preliminary third quarter results, as well as surprise changes in its C-suite. The company saw revenue fall short of expectations, citing pressure in its core North American and European markets.
They also named former Chief Operating Officer Rick Wilmer as its new CEO. As Pasquali Romano will step down from the role and into an advisor position. They also replaced their CFO without much explanation but said that they are looking for a permanent person for the role. ChargePoint has received several analyst downgrades on this news. We're going to cover that just a little bit more later on.
SEANA SMITH: And Zoom seeing some relief after Citi upgraded the stock to neutral after keeping it at a sell rating for almost a year and a half. Now, Citi seeing a better balance between risks and potential rewards. And also sees more usage, that usage becoming a bit more stable. But Citi though still remains a bit cautious as Zoom faces competition from Microsoft Teams as well as high exposure to small and medium sized businesses, which we have a greater probability of discounting their accounts-- discontinuing, excuse me-- their accounts.
