Category: Stock Market News

Shares of PayPal Holdings Inc. tumbled 4.7% in premarket trade Friday, after Wells Fargo analysts downgraded the stock to market perform from e are lowering our rating to Market Perform from outperform after news of a new partnership with Visa. The deal may create interim pressure on funding estimates, they wrote in a note. “This then presents us with a situation where we believe that upside earnings revisions are less likely and valuations are not likely to expand, as the market and shares are in a “holding pattern” while the market tries to balance the attractive top-line/secular story with the new margin paradigm as investors assess the timing of an inflection point when the benefits of the Visa partnership (easier access to off-line merchants, potential partnerships with issuers) may offset the likelihood that higher funding costs pressure margins,” they wrote. PayPal posted a 15% rise in quarterly revenue and an increase in profit, as payment transactions rose. Shares have gained 11% in the year so far, while the S&P 500 has gained 6%.

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Heat Biologics Inc. said Friday that just 16 hours after it announced a planned public offering of common stock shares, it would instead explore “alternative options.” Shares of the biotech dropped 7.9% in pre-market trade after the news. As of the end of March, Heat Biologics had cash, cash equivalents and short-term investments equal to about $11.8 million, and expects topline data for two cancer drugs in the fourth quarter of 2016. Heat Biologics shares rose 27.3% over the last three months, compared with a 3.5% rise in the S&P 500 .

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Shares of American Airlines Group Inc. were indicating lower in premarket trade Friday after the company reported top- and bottom-line declines for the second quarter. The airline reported net income of $950 million, or $1.68 a share, compared with $1.7 billion, or $2.41, in the year-earlier period. Analysts on average were anticipating earnings per share of $1.68, according to FactSet. Revenue fell 4.3% to $10.36 billion from $10.83 billion in the year-earlier period, just ahead of the consensus estimate of $10.32 billion. Load factor, a key metric for airlines that measures the efficiency of its service as measured through capacity, declined to 82.9% from 83.4%. Shares of American Airlines have underperformed the S&P 500 recently. The stock is down 8.5% in the past three months and 15.5% in the past year, while the index is up 3.5% and 2.4%, respectively.

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VF Corp. beat second-quarter earnings expectations but missed on revenue. Earnings for the latest quarter dropped to $51.0 million, or 12 cents per share, from $170.8 million, or 40 cents per share, in the same period a year ago. The latest results include a $97 million loss on the company’s “contemporary brands” business, which it agreed to sell in the second quarter. Adjusted earnings-per-share were 35 cents, compared with the FactSet consensus of 34 cents. Revenue rose to $2.45 billion from $2.43 billion, missing the FactSet consensus of $2.52 billion. VF Corp.’s chief executive officer Eric Wiseman said results were in line with expectations “despite a challenging environment with mixed economic and currency conditions around the world.” The company revised its outlook of a mid-single-digit percentage revenue increase for 2016 to an increase of 3% to 4%. VF Corp. shares were down 1.4% over the last three months, compared with a 3.5% rise in the S&P 500 .

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General Electric Co. reported second-quarter results Friday that included four different earnings-per-share numbers. The conglomerate has said year-over-year comparisons are difficult as the company has recorded both gains and losses from sales of several businesses as part of its GE Capital exit plan, acquired Alstom and recognized pension costs and restructuring charges. The actual bottom line based on generally accepted accounting principles (GAAP) was earnings of $2.74 billion, or 30 cents a share, compared with a loss of $1.36 billion, or 13 cents a share, in the same period a year ago. EPS from continuing operations came in at 36 cents, while operating EPS was 39 cents. Non-GAAP, or EPS from industrials operating and verticals was 51 cents. The FactSet EPS consensus, which is often compared with what can be described as EPS from continuing operations, operating EPS or non-GAAP EPS, was 46 cents. GE The stock slipped 0.4% in premarket trade. It has tacked on 4.6% year to date through Thursday, while the Dow Jones Industrial Average has gained 6.3%.

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Whirlpool Corp. reported second-quarter earnings that were better than expected early on Friday. Net earnings for the quarter came in at $320 million, or $4.15 per share, compared with $177 million, or $2.21 per share during the same period a year ago. Adjusted earnings per share were $3.50 per share, above FactSet’s consensus of $3.39. Sales for the quarter hit $5.20 billion, a slight drop compared with last year’s $5.21 during the same quarter. The FactSet consensus on sales was $5.13 billion. Whirlpool raised its full-year guidance for adjusted earnings to a range of $14.25 per share to $14.75 per share. Whirlpool shares were inactive in premarket trade, but are up more than 24% in the year so far, outperforming the S&P 500 Index , which is up nearly 6%.

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Honeywell International Inc. said Friday it had net income of $1.28 billion, or $1.66 a share, in the second quarter, compared with $1.194 billion, or $1.51 in the year-earlier period. Sales rose to $9.99 billion from $9.775 billion a year ago. The FactSet consensus was for EPS of $1.64 and ales of $10.136 billion. The company said it is now raising the low end of its full-year EPS guidance to $6.60 to $6.70. In its first quarter earnings, the company said it expected full-year EPS of $6.55 to $6.70. It expects sales of $40.3 billion to $40.6 billion, compared with prior guidance of $40.3 billion to $40.9 billion. The company is creating two new business segments, home and building technologies, and safety and productivity solutions, to align its current automation and control solutions business. Shares fell about 1% premarket, but are up about 16% in the year so far, while the S&P 500 has gained 6%.

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Shares of Puma Biotechnology Inc. rallied in the extended session Thursday after the biotech company said it submitted promising follow-up data in its Food and Drug Administration marketing application for a breast cancer treatment. Puma shares jumped 17% to $40.50 after hours. In an early analysis of five years of results, the company said its breast cancer treatment neratinib reduced recurrence of the disease or death by 26% in patients given the treatment versus those given a placebo.

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Shares of Boeing Co. fell more than 1% in late trading Thursday after the aircraft maker warned second-quarter charges will reach $2.05 billion, stemming from setbacks and difficulties in three separate programs and including problems related to weaker air-cargo market trends. In its 787 program, Boeing decided not to invest funds for the refurbishment and sale of the two remaining unsold flight test aircraft. The costs associated with these aircraft were reclassified to research and development expenses, resulting in a non-cash after-tax charge of $847 million, Boeing said in a statement. Moreover, due to “current and anticipated weakness” in the air-cargo market, Boeing will no longer increase the production rate of its 747-8 aircraft in 2019, resulting in a $814 million after-tax charge, also reflecting lower estimated revenues on future aircraft sales. The company will also recognize a $393 million after-tax charge related to its KC-46 Tanker program, to account for higher costs associated with the previously announced program schedule and technical challenges, Boeing said. Boeing will update its 2017 guidance when it reports second-quarter earnings on July 27, the company said.

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Proofpoint Inc. beat earnings expectations in a report Thursday and increased its expectations for the year, leading to a big after-hours spike for the company’s stock. The security-software company reported a loss of $38.3 million, or 92 cents a share, on sales of $89.9 million in the second quarter; after adjusting for stock-based compensation and an extremely long list of other factors, the company claimed a profit of 6 cents a share. Analysts on average expected an adjusted loss of 1 cent a share on sales of $84.3 million, according to FactSet. The cloud-software company passed $100 million in quarterly billings, which accounts for contracts signed, for the first time, beating internal and analyst projections. With the strong revenue and billings showing, Proofpoint increased its guidance for full-year performance, predicting sales of $361.5 million to $363.5 million; the company had previously forecast annual revenue of $350.5 million to $353.5 million. Proofpoint shares, which have been on a roller-coaster ride since being targeted by well-known short seller Carson Block late last year, jumped more than 10% in late trading.

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