HomeNewsFriday’s market recap: Equity Markets drop on a weekly basis on Omicron concerns, Big Lots and Smartsheet beat quarterly Estimates, BofA downgrades Hibbett

Friday’s market recap: Equity Markets drop on a weekly basis on Omicron concerns, Big Lots and Smartsheet beat quarterly Estimates, BofA downgrades Hibbett

Ruchi Gupta
  • The Nasdaq, The Dow Jones, and The S&P 500 drop on a weekly basis on omicron concerns
  • Big Lots and Smartsheet shares jump on quarterly earnings beat
  • Hibbett tanks 20% after BofA downgrade

The S&P 500, the Nasdaq, and the Dow Jones weakened following the uncertainty that markets are facing following divided opinion regarding the efficacy of current COVID-19 vaccines on the Omicron variant.

On Friday, the World Health Organisation said that the Omicron variant of the coronavirus had been detected in 38 countries, and it is unclear whether new lockdowns are likely or not. As a result, the S&P 500 was down 1.2% on a weekly basis, the Nasdaq composite dropped 2.6%, and the Dow Jones Industrial Average lost 0.9%.

Big Lots expects EPS of $2.05-$2.2 in Q4

Big Lots (NYSE: BIG) shares were up 5% on Friday after the company announced its Q3 earnings that topped analysts estimates. The company reported GAAP loss per share of $0.14, narrower than the average analyst estimate loss of $0.16. However, the company saw a 3.6% YoY drop in revenue to $1.33 billion, topping estimates by $10 million. In the fourth quarter, the company expects EPS of between $2.05 and $2.20 with full-year 2022 earnings per share of between $5.70 and $5.85.

Smartsheet gives upbeat guidance

Smartsheet Inc. (NYSE: SMAR) shares were also up 8% on Friday after the company announced its quarterly results on Thursday. An upbeat FY2022 revenue and earnings outlook above estimates triggered the stock surge. The company reported revenue of $144.63 million, representing a YoY increase of 47%, surpassing estimates by $4.7 million. As a result, non-GAAP earnings per share were a loss of $0.03 per share, while GAAP EPS was a loss of $0.29.

BofA downgrades Hibbett to “Hold”

Shares of Hibbett Inc. (NASDAQ: HIBB) lost around 20% on Friday despite the apparel retailer topping its Q3 2021 earnings results and giving upbeat guidance. Investors reacted to the BofA’s downgrade of the stock from a “Buy” to a “Hold” rating. BofA’s Alexander Perry reduced the stock’s price target to $88 and told investors that they expected a 5-10%  YoY drop in consumer income in C1H22  considering headwinds from economic impact payments and subdued real wage growth due to growing inflation.

Ollie’s missed Q3 earnings and revenue estimates

On Friday, Ollie's Bargain (NASDAQ: OLLI) was also down 20% after the company reported a weaker than anticipated Q3 2021 result. The discount retail chain missed both earnings and revenue estimates. Revenue was $22.0 million dropping 49.07% YoY from $43.2 million with diluted earnings per share of $0.34, down from $0.65 per share a year ago.