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- AI Retailer Checks Out 19% Gains
AI Retailer Checks Out 19% Gains
Adam Garcia
March 19, 2025
A processed food giant is slipping after a revenue miss, a sports technology stock is down 5% after missing EPS estimates, and an AI-driven retail tech firm is climbing 19% after posting a strong Q4 revenue beat. Read on to find out more.
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Futures 📈
What to Watch
Earnings:
Five Below, Inc. [FIVE]: Aftermarket
JOYY Inc. [YY]: Aftermarket
TWFG, Inc. [TWFG]: Aftermarket
Economic Reports:
Fed Chair Powell’s press conference is at 2:30 p.m.
Processed Foods
General Mills Reports 5% Sales Decline, Plans Cost-Cutting Measures for 2026
General Mills (NYSE: GIS) reported a 5% decline in third-quarter net sales for fiscal 2025, totaling $4.8 billion.
The decrease is attributed to lower pound volume and unfavorable foreign exchange rates.
Operating profit slipped 2% to $891 million, while adjusted operating profit in constant currency dropped 13% to $801 million.
Diluted earnings per share (EPS) declined 4% to $1.12, with adjusted EPS in constant currency falling 15% to $1.00.
GIS stock is down 3.6% in early trade.
The company faced headwinds from retailer inventory reductions and weaker performance in the snacking category.
However, positive market share gains were recorded in its Pet, Foodservice, and International divisions.
Notably, Pillsbury refrigerated dough and Totino’s hot snacks showed improvements. General Mills also expanded its gross margin by 40 basis points to 33.9% due to Holistic Margin Management (HMM) cost savings.
Looking ahead, General Mills has revised its full-year outlook, expecting organic net sales to decline between 1.5% and 2%.
Adjusted operating profit and EPS are projected to drop 7% to 8% in constant currency.
To counter these challenges, the company plans to invest in innovation, marketing, and consumer value, with at least $100 million in cost-saving initiatives.
CEO Jeff Harmening acknowledged the weaker-than-expected results but emphasized the company’s focus on long-term growth, highlighting new product launches and increased brand investments planned for fiscal 2026.
Sports Technology
Sportradar Falls Short on Q4 EPS, Announces 2025 Forecast and IMG ARENA Deal
Sportradar Group AG (NASDAQ: SRAD) reported fourth-quarter earnings per share (EPS) of $0.00, falling short of analyst expectations by $0.04.
However, revenue for the quarter is above estimates, reaching $307.07 million compared to the projected $292.53 million.
For fiscal year 2025, the company forecasts revenue of $1.273 billion, below the market consensus of $1.37 billion.
It also expects an adjusted EBITDA margin expansion of at least 200 basis points and a free cash flow conversion rate surpassing the 2024 level of 53%.
Shares of Sportsradar are down 5% in premarket trade.
Sportradar has also confirmed its acquisition of IMG ARENA from Endeavor Group (NYSE: EDR), a move expected to bolster its global sports betting rights portfolio.
The transaction, anticipated to close in Q4 2025 pending regulatory approvals, will expand Sportradar’s presence across key sports markets, including soccer, tennis, and basketball.
IMG ARENA brings with it partnerships with over 70 rightsholders and rights to 39,000 official data events and 30,000 streaming events across 14 sports on six continents.
Under the terms of the deal, Sportradar will receive $125 million, along with up to $100 million in cash prepayments made by Endeavor to select sports rightsholders.
The company expects the acquisition to immediately strengthen its financial position and enhance its margins.
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Retail
Ollie’s Q4 Revenue Misses Estimates, Plans Aggressive Expansion in 2025
Ollie’s Bargain Outlet (NASDAQ: OLLI) reported its fourth-quarter results today, posting non-GAAP earnings per share (EPS) of $1.19, in line with analyst expectations.
However, revenue for the quarter is $667.1 million, missing projections by $7.42 million.
Despite this, revenue is up 2.8% year-over-year, supported by a comparable store sales increase of 2.8%.
Shares of the retail firm are down nearly 1% before the opening bell today.
The company expanded its footprint significantly in Q4, opening 13 new locations and ending the quarter with 559 stores across 31 states, reflecting a 9.2% increase in store count from the previous year.
Looking ahead, Ollie’s has outlined an ambitious growth plan for fiscal 2025, aiming to open 75 new stores—up from 50 in the prior year.
The company expects full-year net sales between $2.564 billion and $2.586 billion, with comparable store sales projected to rise 1% to 2%.
Gross margin is forecasted at 40%, and adjusted net income is anticipated to range from $225 million to $232 million.
Ollie’s also projects an adjusted EPS between $3.65 and $3.75 for the year ending January 31, 2026, with capital expenditures estimated at $83 million to $88 million.
Despite the revenue miss, the company remains focused on expansion and operational growth.
Movers and Shakers
CARGO Therapeutics, Inc. [CRGX] - Last Close: $3.80
CARGO Therapeutics, Inc., is a cancer-focused biotech company.
Its shares are surging 21% in premarket trading today after it announced a 90% workforce reduction and the discontinuation of its experimental cancer therapy CRG-023. The company is now exploring a merger or acquisition, appointing Anup Radhakrishnan as interim CEO to oversee the process.
My Take: While the company’s pivot toward a merger suggests financial prudence, the abrupt halt of its therapy program raises concerns about its long-term viability. Keep an eye on updates regarding the merger before investing here.
Black Diamond Therapeutics, Inc. [BDTX] - Last Close: $1.68
Black Diamond Therapeutics, Inc., is a clinical-stage oncology company.
Its shares are up 26% in early trade after announcing a global licensing agreement with Servier for its targeted oncology therapy BDTX-4933.
My Take: Under the deal, Black Diamond will receive a $70 million upfront and potentially $710 million in milestone payments and royalties. This cash infusion bodes well for the firm. Keep a close watch on this stock’s progress.
Aterian, Inc. [ATER] - Last Close: $2.11
Aterian, Inc., is a technology-driven consumer products company that leverages AI and e-commerce analytics to sell a variety of household and personal care goods.
Its shares are rising 19% in premarket trading after Aterian reported Q4 revenue of $24.6 million, beating analyst expectations.
Additionally, the company provided an upbeat 2025 revenue forecast of $104 million to $106 million, exceeding Wall Street’s estimates.
My Take: Aterian stock has declined 51% in the last one year, but it has improved its revenue and net margin situation in the last two quarters. Keep this stock on your radar for its performance in subsequent quarters.
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Everything Else
Elon Musk’s xAI teams up with Nvidia and major investors to expand AI data centers.
Nvidia’s latest AI superchips promise massive performance gains for cloud providers.
Pfizer finalizes its Haleon exit with a $170 million buyback deal and an institutional sale.
HealthEquity shares drop as earnings miss expectations despite revenue growth.
StoneCo sees a major rebound after posting impressive Q4 results.
Lexinfintech beats revenue expectations but the market reacts negatively to its outlook.
Trevi Therapeutics reports strong trial results despite widening losses.
Chinese AI startup Zhipu secures $257 million in a state-backed funding surge.
Workforce reductions at Morgan Stanley signal a cost-cutting push under the new CEO.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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