Category: Stock Market News

L Brands Inc. shares rallied 5.4% in Thursday premarket trading after the retail company reported fourth-quarter sales and same-store sales that beat the FactSet consensus. L Brands portfolio includes Victoria’s Secret and Bath & Body Works. Fourth-quarter sales were $4.82 billion, up from $4.49 billion last year and exceeding the FactSet consensus of $4.72 billion. Same-store sales rose 2%, also beating the FactSet guidance for 0.6% growth. Sales for the five weeks ending Feb. 3, 2018 totaled $1.04 billion, up from $805.2 million for the four weeks ending Jan. 28, 2017. January same-store sales that jumped 7% year-over-year. L Brands expects fourth quarter EPS of about $2.05, before the impact of significant items including the tax overhaul. L Brands shares are up 3.7% for the last three months, but down 16.3% for the last year. The S&P 500 index is up nearly 17% for the past 12 months.

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Teva Pharmaceutical Industries Ltd. shares plummeted nearly 14% in premarket trade Thursday after the company reported fourth-quarter profit and revenue beats but provided 2018 guidance that fell well short of expectations. The company reported a loss of $11.60 billion, or a loss of $11.41 per share, after a loss of $1.04 billion, or a loss of $1.10 per share. Adjusted earnings-per-share were 93 cents, compared with the FactSet consensus of 77 cents. Revenue declined to $5.46 billion from $6.49 billion, compared with the FactSet consensus of $5.29 billion. The company also recorded goodwill impairments totaling $17.1 billion in 2017, mainly relating to its U.S. generics reporting unit due to various competitive pressures. Teva expects 2018 revenue of $18.3 billion to $18.8 billion, compared with the FactSet consensus of $19.24 billion, and 2018 adjusted EPS of $2.25 to $2.50, compared with the FactSet consensus of $3.83. “2017 was a challenging year for Teva. Starting 2018 we are focused on meeting our financial obligations and ensuring a much more solid and sustainable business model going forward,” said Chief Executive Kåre Schultz. Teva shares have surged 76.3% over the last three months, compared with a 3.4% rise in the S&P 500 .

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Cardinal Health Inc. reported second-quarter profit and revenue beats early Thursday. Earnings for the latest quarter rose to $1.1 billion, or $3.33 per share, from $324 billion, or $1.02 per share in the year-earlier period. Adjusted earnings-per-share were $1.51, compared with the FactSet consensus of $1.15. Revenue rose to $35.2 billion from $33.1 billion, compared with the FactSet consensus of $34.6 billion. The U.S.’s corporate tax overhaul benefited Cardinal Health in the latest quarter by 20 cents per share, and should result in a federal tax rate of about 28% for the company in 2018. The company also recorded transitional tax benefits of $2.83 per share. Cardinal Health now expects 2018 adjusted EPS of $5.25 to $5.50, which reflects 40 cents per share of benefit from the corporate tax overhaul, and comes in above the FactSet consensus of $5.15 per share. Cardinal Health shares were not active in premarket trade. Shares have risen 6.8% over the last three months, compared with a 3.4% rise in the S&P 500 .

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Tesla Inc. is losing President of Global Sales and Service Jonathan McNeill to Lyft Inc., where he will take the Chief Operating Officer job, Elon Musk said on Tesla’s earnings call late Wednesday. Tesla stock is up a fraction to $345.70 after hours. Tesla reported a narrower-than-expected loss Wednesday and kept a key target for the Model 3 in place during its fourth quarter. McNeill has been with Tesla since 2015 and was awarded $6.5 million in overall 2016 compensation, according to FactSet.

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Yelp Inc. shares fell in the extended session Wednesday after the reviews site missed fourth-quarter earnings estimates. Yelp shares plunged more than 6% to $41.50 after hours. The company reported fourth-quarter net income of $142 million, or $1.60 a share, compared with $8.2 million, or 10 cents a share, in the year-ago period. Net income includes a pre-tax gain on the sale of Yelp’s Eat24 unit for $164.8 million. Adjusted earnings were 19 cents a share. Revenue rose to $218 million from $194 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of 27 cents a share on revenue of $215 million. For the first quarter, analysts model adjusted earnings of 25 cents a share on sales of $219.5 million. Yelp said that it expects first-quarter sales of $218 million to $221 million. Yelp stock has gained 7.8% in the past year, with the S&P 500 index rising 18%.

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Shares of Yum China Holdings Inc. fell in Wednesday’s extended session after the fast-food chain posted a quarterly loss, stemming in part from a charge related to U.S. tax cuts. The operator of KFC and Pizza Hut in China reported it swung to a fourth-quarter loss of 90 million, or 23 cents a share, versus earnings of $88 million, or 23 cents a share, a year earlier. Yum China recorded a one-time tax charge of $164 million and would have earned earned 19 cents a share on an adjusted basis. Revenue grew 13% to $2.2 billion while same-store sales rose 5%, led by KFC. Analysts surveyed by FactSet had forecast earnings of 18 cents on revenue of $2.15 billion. Yum China had spun off from Yum Brands at the end of 2016. Yum China shares slid 2.9% after hours.

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The Dow Jones Industrial Average and the S&P 500 on Wednesday just relinquished their biggest point leads in about three years. The Dow boasted an intraday advance of about 381 points, but ended the volatile session off 19 points, or less than 0.1%, at 24,893, representing its biggest reversal from a peak intraday since Aug. 25, 2015, according to WSJ Market Data Group. A similar reversal played out for the broader-market S&P 500 index which gave up a nearly 33-point intraday gain to finish the session down more than 13 points, or off 0.5%, also representing its biggest blown lead since 2015 when it rose 55 points but ended the session down 1.4%. The frenetic swings for the equity gauges highlights a resurgence of volatility on Wall Street after a lengthy period of quiet as investors focus on a Federal Reserve that may be more aggressive in raising borrowing costs as stubbornly low inflation resurfaces.

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Shares of iRobot Corp. dropped in the extended session Wednesday after the Roomba maker’s earnings results and outlook fell short of Wall Street estimates. Shares of iRobot fell 21% to $69.36 after hours. The company reported fourth-quarter net income of $4.6 million, or 16 cents a share, compared with $13.7 million, or 49 cents a share, in the year-ago period. Revenue rose to $326.9 million from $212.5 million in the year-ago period. Analysts surveyed by FactSet had estimated 25 cents a share on revenue of $318.8 million. For the year, iRobot estimates earnings of $2.10 to $2.35 a share on revenue of $1.05 billion to $1.08 billion. Analysts expect earnings of $2.70 a share on revenue of $1.02 billion.

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Gilead Sciences Inc.’s once-a-day HIV regimen has been approved by the Food and Drug Administration, the company said Wednesday afternoon. The regimen, Biktarvy, is intended for HIV patients who are new to treatment and will cost $35,859, similar to other single-tablet HIV therapies, said Mizuho analyst Salim Syed. The approval happened a few days earlier than expected, and the safety label for the product is clean, he said. Biktarvy is expected to become a “gold standard” HIV regimen for patients new to treatment because it has a high barrier to resistance, no liver toxicity issues, few potential drug-drug interactions, a small pill size and a rapid start to therapy, said RBC Capital Markets analyst Brian Abrahams. Gilead shares rose 4.5% in extremely heavy Wednesday afternoon trade. Shares have surged 14.7% over the last three months, compared with a 4.6% rise in the S&P 500 and a 5.8% rise in the Dow Jones Industrial Average .

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The federal government had a budget surplus of $51 billion in January, slightly smaller than the same month a year ago, according to the Congressional Budget Office. For the first four months of fiscal 2018, the shortfall is $174 billion, up $16 billion from the same period a year ago. For the fiscal year to date, receipts are up by 4% and spending is 5% higher, CBO said. Department of Homeland Security outlays have risen 67%, or $12 billion, for the fiscal year due to activities related to disaster relief.

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