Category: Stock Market News

Under Armour Inc. has signed a 15-year, $280 million contract with UCLA, the Los Angeles Times reported, citing university officials. UCLA will receive $15 million up front, then receive about $11 million each year in rights and marketing fees, the report says. The deal is expected to be announced at noon Tuesday. UCLA has a contract with Adidas that’s set to expire next year. The brand has a 10-year, $90 million deal with Notre Dame, signed in 2014. Under Armour shares are up 2.5% in Tuesday trading, but down 8.2% for the year so far. The S&P 500 is up 1.5% for the year to date.

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Shares of Twitter Inc. tumbled 3.9% in active morning trade Tuesday, putting them on track for a record-low close, in the wake of some downbeat comments by analysts. Volume topped 9.1 million shares within the first half-hour of trade, compared with the full-day average of 22.5 million shares. Analyst James Cakmak at Monness Crespi Hardt slashed his stock price target by 18% to $18, saying consensus earnings estimates are still too high given the lack of potential near-term catalysts. “Twitter has been frustrating to cover, not only because of its declining share value, but more so because of its vast potential that’s eroding by the day,” Cakmak wrote in a note to clients. “Admittedly, as an avid user we’ve seen only incremental improvements to the experience when steep changes are needed. There is still time for a turnaround, but that window is closing.” Separately, independent research firm MoffettNathanson downgraded Twitter to sell, in a note entitled, “Hope is Not a Strategy.” The stock has now plunged 40% year to date, while the S&P 500 has gained 1.1%.

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Shares of Microsoft Corp. were upgraded to outperform from market perform at Cowen on Tuesday. The bank attributed the upgrade to improvements in its Microsoft Office business, as well as growth within its cloud-based service Azure. Both businesses are positioned for growth, with Office revenue growth expected to accelerate through fiscal 2018, said Cowen analyst Gregg Mosowitz, who has a $58 12-month price target on the stock. In the company’s last earnings report, investors “largely overlooked” Microsoft’s transition of Office to a subscription service, he said. Shares of Microsoft rose 0.8% to $50.44 in early trade. They are down nearly 2% from three months ago, underperforming the Dow Jones Industrial Average, which is up 7%.

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From:: Stock Market News

Shares of Microsoft Corp. were upgraded to outperform from market perform at Cowen on Tuesday. The bank attributed the upgrade to improvements in its Microsoft Office business, as well as growth within its cloud-based service Azure. Both businesses are positioned for growth, with Office revenue growth expected to accelerate through fiscal 2018, said Cowen analyst Gregg Mosowitz, who has a $58 12-month price target on the stock. In the company’s last earnings report, investors “largely overlooked” Microsoft’s transition of Office to a subscription service, he said. Shares of Microsoft rose 0.8% to $50.44 in early trade. They are down nearly 2% from three months ago, underperforming the Dow Jones Industrial Average, which is up 7%.

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U.S. stocks opened firmly higher Tuesday as Wall Street tried to shake off yesterday’s sluggish start to the week. The Dow Jones Industrial Average opened 108 points, or 0.6%, higher at 17,603, the S&P 500 index picked up 1` points, or 0.6%, to 2,059. Meanwhile, the Nasdaq Composite Index rose 27 points, or 0.6%, up at 4,793. Investors are awaiting a reading of new-home sales due at 10 a.m. Eastern Time as home-builder Toll Brothers posted quarterly profit and revenue that topped expectations. On Monday, the S&P 500 closed 0.2% lower, while the Dow and Nasdaq Composite both shed 0.1%, as Federal Reserve officials continued to signal that U.S. interest rates could rise as soon as next month.

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DeVry Education Group Inc. said Tuesday its chief executive officer, Daniel Hamburger, is leaving the company “to pursue other opportunities,” after nine years in the position, and 13 years with the company. The for-profit education company named Lisa Wardell, most recently the chief operating officer of investment company RLJ Companies, effective Tuesday. Earlier this year, DeVry was sued by the Federal Trade Commission, alleging the company deceived prospective students about the success of its graduates. The stock, which was still inactive in premarket trade, has plunged 23% year to date, while the S&P 500 has gained 0.2%.

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Rambus Inc. , a technology licensing company, said Tuesday that the company’s chief financial officer, Satish Rishi, plans to retire the first week of August. The company is searching for his replacement, and Rishi will help with the search. He has been chief financial officer since 2006. Shares of Rambus have fallen 1.6% in the past month, compared to the S&P 500’s decline of 2.1%.

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J.M. Smucker Co. said it was cutting list prices for most of its coffee products sold in the U.S. by an average of 6%, with the company saying it was passing lower coffee costs to consumers. The lowered prices are primarily on products under the Folgers and Dunkin’ Donuts brand names. The K-Cup pods were not included in the price cuts. “For the last several quarters, lower green coffee costs were reflected in promotional pricing for the majority of our packaged coffee products, and we do not anticipate those prices changing significantly,” said Steve Oakland, president of the company’s U.S. food and beverage unit. “This list price decrease provides an opportunity for consumers to benefit from lower pricing on an everyday basis.” The stock, which was still inactive in premarket trade, has gained 2.9% year to date, while the S&P 500 has tacked on 0.2%.

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Best Buy Co. Inc. shares dropped 6.1% in Tuesday premarket trading, after the electronics retailer said it sees second-quarter earnings below consensus. The company reported first-quarter net income of $229 million, or 70 cents per share, up from $129 million, or 36 cents per share, for the same period last year. Adjusted earnings per share were 44 cents, exceeding the FactSet consensus of 35 cents. Revenue totaled $8.44 billion, down from $8.56 billion last year but exceeding the FactSet consensus of $8.29 billion. Domestic same-store sales were flat, above the guidance of a 1% to 2% decline, driven by year-over-year sales growth in health and wearables, home theater and appliances. The growth was offset by softness in mobile phones and tablets, said Chief Executive Hubert Joly in a statement. Best Buy sees second-quarter revenue between $8.35 billion and $8.45 billion, above the $8.31 billion FactSet consensus, and second-quarter adjusted EPS between 38 cents and 42 cents, below the 50 cents per share FactSet consensus. The company reaffirmed its previous full-year outlook for approximately flat revenue because the first quarter only represents 15% of full-year earnings “and at this stage we have no new material information as it relates to product launches throughout the year,” said Joly. Best Buy shares are up 8.4% for the year so far, but down 3.9% for the past year. The S&P 500 is up 0.2% for the year to date.

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AutoZone Inc.’s stock was indicated down about 3% in premarket trade Tuesday, after the automotive replacement parts retailer missed third-quarter sales expectations, citing bad weather. For the quarter ended May 7, earnings rose to $327.5 million, or $10.77 a share, from $309.1 million, or $9.57 a share, in the same period a year ago. The results included a 11-cents-per-share legal charge. The FactSet EPS consensus was $10.92. Sales rose to $2.59 billion from $2.49 billion a year ago, but was below the FactSet consensus of $2.65 billion. Same-store sales increased 2%, after rising 2.3% in the same period a year ago. “Regarding the third quarter’s results, sales were below our expectations as weather negatively impacted sales primarily in Midwestern, Middle Atlantic, and Northeastern states,” said Chief Executive Bill Rhodes. The stock has slumped 4.6% over the past three months through Monday, while the S&P 500 has gained 6.1%.

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