Category: Stock Market News

Gap Inc. is down 6.3% in Tuesday premarket trading in the wake of disappointing July and second-quarter same-store sales at the Banana Republic and namesake brands. Old Navy reported flat same-store sales for the month and the quarter. Overall, Gap Inc. reported a 4% same-store sales decline for the month, and a 2% same-store sales decline for the second quarter. “Unfavorable weather, soft traffic trends and uninspiring product assortments contributed to the disappointing results,” wrote Stifel analysts on Monday. The bank believes there will be continued challenges in the near-term. “The prolonged underperformance at the Gap businesses despite management’s best efforts has undermined our confidence and limited our visibility for improvement,” Stifel said. Analysts maintained their hold rating on Gap shares. Gap shares are down 26.6% for the past year, but up 3.7% for the year to date. The S&P 500 Index is up 6.7% for the year so far.

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Coach Inc.’s stock surged 2.4% in premarket trade Tuesday, after the luxury accessories retailer reported fiscal fourth-quarter earnings that beat expectations. Earnings for the quarter ended July 2 rose to $81.5 million, or 29 cents a share, from $11.7 million, or 4 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 45 cents, beating the FactSet consensus of 41 cents. Revenue increased to $1.15 billion from $1.00 billion, just shy of the FactSet consensus of $1.16 billion. North American sales rose 9% to $606 million, above the FactSet consensus of $591.8 million, while domestic same-store sales grew 2% to beat expectations of 1.8%. Stuart Weitzman sales came in at $84 million, above the FactSet consensus of $81.6 million. For fiscal 2017, Coach expects revenue to increase in the low-to-mid single digit percentage range, while the current FactSet consensus of $4.68 billion implies 4.1% growth. The stock has soared 27% year to date through Monday, while the S&P 500 has gained 6.7%.

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Shares of Valeant Pharmaceuticals International Inc. rallied 9% in heavy premarket trade on Tuesday after the drug maker reported a wider loss in the second quarter, but confirmed its full-year guidance. The company said it lost $302.3 million during the quarter, or 88 cents a share, compared with a loss of $53 million, or 15 cents a share, in the year ago period. On an adjusted basis, earnings came in at $1.40 a share, down from $2.14 a share last year. Revenue fell 11% to $2.42 billion. Valeant said it still expects revenue for the full year to be in the range of $9.9 billion to $10.1 billion. It also confirmed its adjusted-earnings forecast of $6.60 to $7.00 a share.

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Interest rates on U.K. government debt dropped to a fresh all-time low on Tuesday, as investors continued to digest the Bank of England’s aggressive stimulus package unveiled last week. The yield on 10-year Gilts fell 9 basis points to 0.591%, breaking below 0.60% for the first time ever. U.K. borrowing costs have been falling steadily since the country’s Brexit vote in June and on Thursday last week, yields took another dive after the BOE meeting. The central bank cut its interest rate to a record low of 0.25%, restarted its asset purchase program, and announced plans for corporate bond buys and ultracheap funding for banks. The measures have also weighed on the pound, which continued to slide on Tuesday. Sterling bought $1.2999, down from $1.3040 late Monday in New York. Against the euro [s:gbpeur], the pound dropped to €1.1722 compared with €1.1760 on Monday.

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Staffing provider Randstad Holding NV has agreed to acquire Monster Worldwide Inc. in a deal worth about $429 million, the Dutch company said Tuesday in a statement. Under the agreement, Randstad will pay $3.40 a share in cash for the Weston, Mass.-based online job search and recruitment service. That represents a 22.7% premium on Monster’s closing price of $2.77 a share on Monday. The boards of directors of both Randstad and Monster have unanimously approved the terms of the merger agreement. Monster will keep its name and continue to operate as an independent entity under the deal, which is expected to be completed in the fourth quarter. Separately on Tuesday, Monster reported a net loss in the second quarter of $124.2 million, or $1.40 a share, including a pretax goodwill impairment charge. Adjusted net loss was $2.1 million, or $0.02 a share. The U.S. company has cancelled its conference call scheduled for later Tuesday.

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Valeant Pharmaceuticals International Inc. shares ticked higher in the extended session Monday after the drug maker relaunched a bacterial ear infection treatment that had been discontinued last year. Valeant shares rose 0.7% to $22.60 after hours. The company said it was relaunching generic ofloxacin otic solution, after discontinuing the drug in April 2015 because of supplier problems.

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TubeMogul Inc. plummeted more than 20% in late trading Monday after the advertising-technology company’s financial performance and forecast came in much lower than Wall Street expectations. In the second quarter, TubeMogul reported a loss of $3.8 million, or 11 cents a share, on sales of $55.4 million, with total advertising spend on its platform reaching $139.3 million. All of those figures were lower than expected: analysts on average forecast a loss of 8 cents a share on revenue of $58.2 million and total spend of $146.2 million, according to FactSet. All three metrics also came in lower than the FactSet consensus for the third-quarter forecast, and TubeMogul reduced its annual forecast to sales of $217 million to $221 million and total spend of $558 million to $562 million. Analysts on average were projecting annual revenue of $229 million and total spend of $579.4 million, according to FactSet. TubeMogul shares fell lower than $10 in late trading after closing with a 6.5% gain at $12.64.

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U.S. shares of Sina Corp. rose in the extended session Monday while shares of Weibo Corp. struggled to hold onto slight gains after the Chinese online media companies topped Wall Street estimates. Sina shares advanced 4% to $60.65, while U.S. shares of Weibo ticked 0.1% higher to $37.20 after hours. Sina reported adjusted second-quarter earnings of 27 cents a share on revenue of $244 million. Analysts surveyed by FactSet had expected earnings of 15 cents a share on revenue of $229.2 million. Sina raised its full-year revenue to a range of $950 million and $1 billion, while analysts expect $951.1 billion. Weibo, which is majority owned by Sina, reported adjusted earnings of 16 cents a share on revenue of $146.9 million. Analysts had estimated adjusted earnings of 11 cents a share on revenue of $146.7 million. Weibo expects third-quarter revenue of $168 million to $173 million, while analysts estimate $164.6 million.

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Gap Inc. shares fell 4.4% in Monday post-market trading after the company said revenue and same-store sales slipped for the month of July, as well as for the second quarter. The retailer said sales for the four weeks ending July 30 were $1.10 billion, down from $1.12 billion a year ago. Sales for the quarter totaled $3.85 billion, down from $3.90 billion for the same period last year, but beating the FactSet consensus of $3.77 billion. Gap Inc. same-store sales for the month were down 4%, as were same-store sales for the Gap Global namesake brand. July same-store sales dropped 14% at Banana Republic and were flat at Old Navy. For the second quarter, same-store sales for Gap Inc. were down 2%, compared with the FactSet consensus of 2.7% decline. Same-store sales for the quarter were down 3% at the Gap Global brand, down 9% at Banana Republic, and flat at Old Navy. The company expects second-quarter earnings per share to be in the range of 30 cents to 31 cents, and adjusted earnings per share in the range of 58 cents to 59 cents exceeding the FactSet consensus of 48 cents. Gap shares are down 26.6% for the past year while the S&P 500 Index is up 5% for the same period.

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Shares of Twilio Inc. rose 1.25% after hours Monday after the company beat second-quarter earnings expectations in its first report as a public company. Twilio reported a net loss of $10.9 million, or 45 cents per share, compared to a net loss of $9.5 million, or 52 cents per share in the year-earlier period. It reported an adjusted loss per share of 8 cents, compared to the FactSet consensus of a loss of 15 cents. It reported revenue of $64.5 million, up from $37.9 million in the year-earlier period and above the FactSet consensus of $58.2 million. Twilio issued a revenue outlook of $63 million to $65 million for the third-quarter and an adjusted net loss per share of 9 cents to 10 cents. Shares of Twilio have gained 19.6% in the past month, compared to the S&P 500’s gain of 2,4%.

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