Customers wait in a long queue to enter a Costco members wholesale outlet.
Adrian Dennis | Getty Images
Check out the companies making headlines after the bell.
Disney — The entertainment giant’s stock shot up more than 7% after the company reported that Disney+ subscriptions surpassed 50 million. The new subscription number is almost twice as many as what Disney reported in first-quarter earnings release from February 4, when it said it hit 26.5 million subscribers during the quarter.
Costco Wholesale — Shares of the big-box retailer tumbled 4% in extended trading after the company released sales results for March. Same-store sales were up with the rush of people buying essentials amid the coronavirus outbreak, but it didn’t boost sales as much as analysts expected as Costco saw losses in other areas like jewelry and apparel. Costco reported net sales of $15.49 billion for the retail month of March, an increase of 11.7 percent from $13.87 billion last year.
Starbucks — The coffee chain saw its stock dip 2% in extended trading after an SEC filing was released that said comparable stores declined by 60% to 70% in the last week of March. The company said by the end of March, nearly half of its U.S. stores were operating via drive-thru amidst stay-at-home restrictions implemented because of the coronavirus pandemic. The filing also stated the company expects second-quarter adjusted earnings of 32 cents per share, down from 60 cents per share in the same period a year ago.
Virgin Galactic Holdings — The aerospace company’s stock rose 2% in extended trading after Virgin Galactic announced that its prototype patient oxygen hoods, which are designed for treating coronavirus patients, were ready for testing. The hoods are supposed to help prevent Acute Respiratory Distress Syndrome from developing in those sick from the virus.
Stitch Fix — The online personalized styling service’s stock fell 1% in extended trading after the company withdrew guidance for the third quarter and fiscal year 2020 due to economic uncertainty caused by the Covid-19 pandemic. “While we anticipated our business would be impacted, we did not have visibility into the extent to which it would disrupt our distribution centers,” founder and CEO Katrina Lake said in a statement. The company is experiencing “significant constraints” on its operations because of the virus, according to Lake.
Six Flags Entertainment — The theme park company’s stock jumped 2% in extended trading after Six Flags announced that it was increasing its revolving credit facility to $481 million to provide more liquidity and greater financial flexibility. “The increase in our revolving credit facility, combined with actions we have taken to reduce operating expenses and capital expenditures, provides us with significant runway to operate in this uncertain environment,” said President and CEO Mike Spanos. The company also provided multiple updates related to its business operations, including that it was withdrawing its full-year 2020 guidance and suspending its quarterly dividend. Six Flags also gave preliminary first-quarter results and expects total revenue for that quarter to be $25 million to $30 million lower than the same period in the previous year.
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