Yahoo Finance Trending tickers: Wetherspoons | M&S | Softbank | Rivian
The latest investor updates on stocks that are trending on Wednesday
JD Wetherspoon (JDW.L)
Pub chain Wetherspoons has revealed a jump in sales over the past quarter as it saw strong demand for its value-focused drink and food offer.
Like-for-like (LFL) sales in the first 14 weeks of the financial year were 9.5% higher than the same period last year. Bar sales increased by 10.7%, food by 8.2% and slot/fruit machines by 10.0%. Total sales have grown by 8.1% in the year to date.
The group, which owns and operates 816 pubs across the UK and Ireland, said it would spend about £70m ($85.8m) pounds this year to improve its pubs.
Read more: LIVE: FTSE and European stocks mixed ahead of key Fed speech
The company said it opened one pub at Heathrow Airport during the reported 14-week period, while four pubs were sold and six leasehold pubs were surrendered to the landlord. It currently has a trading estate of 816 pubs.
Chairman Tim Martin said sales "have continued the pattern of gradual improvement which has followed the ending of lockdowns and restrictions."
Marks & Spencer (MKS.L)
Shares in M&S surged after the retailer reported a much better-than-expected 75% rise in first-half profit and restored its dividend.
The company said on Wednesday that it made pre-tax profits of £326m in the first half of its financial year, up 56.2% from £208m in the same period last year. Like for like food sales rose 11.7% and comparable sales in clothing and home gained 5.5%.
M&S declared a 1p per share interim dividend, its first payout since 2019.
Read more: Interest rates: The UK banks that pay well, and those that don’t
Richard Hunter, head of markets at Interactive Investor, said: “The thorn in the side to the business remains the joint venture with Ocado (OCDO.L), which has yet to establish itself in anything like the way the group had originally envisaged.
“Despite sales growth of 6.9% in the half and an increase in active customers due to promotions such as the “Big Price Drop” and an increased M&S range, the share of loss attributed to the venture was £23.4m, compared to £0.7m in the corresponding period and concerningly close to the £29.5m for the entirety of the previous year.”
Softbank (9434.T)
Softbank is expected to post a 91% drop in net profit to 280.26bn yen ($1.86bn) when it reports earnings this Thursday, with the bankruptcy of WeWork in focus.
SoftBank invested about $16bn in WeWork in the years that led up to the flexible-workspace company's bankruptcy, according to Reuters calculations. The Japanese conglomerate led by Masayoshi Son is the company’s largest shareholder and also its biggest creditor.
Read more: Stocks that are trending today
The bankruptcy of WeWork is expected to result in significant financial losses and even cause reputational damage.
Investors will also be keen to see how Arm (ARM) is performing after the biggest IPO of the year, with its valuation lower than anticipated by Softbank.
Rivian (RIVN)
Rivian Automotive’s shares were up in pre-trading as the electric-vehicle maker raised its production guidance for 2023, saying it now expects to produce 54,000 cars, up from previous guidance of 52,000.
For the quarter, Rivian reported revenue of $1.34bn compared to the $1.31bn estimated, with an adjusted EPS loss of $1.19 vs $1.32 expected. That revenue figure represents a 19.6% jump from Q2’s $1.12bn and 150% more than the $536m reported a year ago.
On an adjusted EBITDA basis, Rivian reported a loss of $942m vs $1.04bn expected, which is also narrower than the $1.307bn loss reported a year ago.
Rivian also said it was no longer required to sell its electric delivery vans exclusively to Amazon (AMZN) and was in talks with other potential customers.
Watch: M&S restores dividend as half-year profits surge 75% despite discounting
Download the Yahoo Finance app, available for Apple and Android.
