Category: Stock Market News

Hewlett Packett Enterprise Co. stock dove more than 4% Thursday morning after laying out its plans for the rest of this year and the next at an Analyst Day meeting Wednesday afternoon. HPE executives outlined its previously announced “HPE NExt” plan, which it expects to “simplify the organizational structure, redesign business processes and prioritize investments.” The reorganization is widely believed to involve thousands of layoffs; HPE did not reveal cuts it may plan, but said the plan will drive savings of $1.5 billion over the next three years. Chief Financial Officer Tim Stonesifer confirmed HPE’s outlook for the rest of this fiscal year at 5% year-over-year revenue growth and earnings of $1 a share. For fiscal year 2018, HPE said it expects “modest” revenue growth and adjusted earnings of $1.15 to $1.25 a share, in line with expectations. HPE increased its dividend to 7.5 cents a share from 6.5 cents a share, and its stock-repurchase authorization to $5 billion. Shares ducked as low as $14.08 in the first hour of trading Thursday morning after closing at $14.70 Wednesday; HPE stock has gained 4.9% so far this year, as the S&P 500 index has gained 14.4%.

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Shares of Warrior Met Coal Inc. surged 14% in premarket trade Thursday, after the metallurgical coal producer said it planned to offer debt to pay a special cash dividend of $600 million. The company said earlier that it proposes offering $350 million in senior secured notes due 2024 in a private offering. The company said it would use the proceeds from the offering and cash on hand of about $260 million to pay the special cash dividend to shareholders during 2017 to all of its stockholders on a pro rata basis. Based on 53.44 million shares outstanding as of July 31, the special dividend would be equal to $11.23 a share. S&P Global Ratings said Thursday it rated Warrior Met’s proposed debt at junk-level rating of B-. The credit rating agency said the rating was characterized by Warrior’s “narrow production base, low cash costs and volatile earnings owing to rpice an volume swings for metallurgical (met) coal.” Warrior Met went public on April 13 at an IPO price of $19. Since then, it has closed as low as $15.49 on June 21 and as high as $27.29 on Aug. 31. The stock has has shot up 49% since its IPO day, while the S&P 500 has gained 9.7%.

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U.S. benchmark stock indexes fell at the open on Thursday. Stocks are retreating from all-time highs, after the Dow Jones Industrial Average surged past the 23,000 level on Wednesday for the first time. The Dow gave back 65 points to slip to 23092. The S&P 500 fell 0.3% to to 2553.59. While, the Nasdaq Composite [s:comp] shed 29 points to 6585.66.

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Carnival Corp. said Thursday that it has raised its quarterly dividend 12% to 45 cents per share, up from 40 cents per share. Payment date is December 15, 2017 for stockholders of record as of November 24, 2017. Dividends payable in pounds sterling will be converted from U.S. dollars according to the Bank of England in London exchange rate as of noon on December 1, 2017. Carnival shares are nearly flat in Thursday premarket trading and up 29.6% for the year so far. The S&P 500 index is up 14.4% for 2017 to date.

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Quest Diagnostics Inc. said on Thursday that despite greater-than-expected proposed cuts to Medicare reimbursement for lab tests, the company should still meet the guidance it has set for coming years. Quest shares rose 0.9% in premarket trade. Though Quest disagrees with the proposed cuts, which it said do not represent market-based rates, “In whatever form CMS might implement [the Protecting Access to Medicare Act], we remain confident in our ability to meet the long-term commitments outlined at our 2016 Investor Day,” said Chief Executive Steve Rusckowski, referring to the raised outlook for profit and revenue growth between 2017 and 2020 that the company set in November 2016. Quest third-quarter earnings declined to $161 million, or $1.15 per share, from $192 million, or $1.34 per share in the year-earlier period. Adjusted earnings-per-share were $1.39, above the FactSet consensus of $1.35. Revenue rose to $1.93 billion from $1.89 billion, above the FactSet consensus of $1.92 billion. The company also narrowed its 2017 outlook due to the impact of three recent hurricanes. It now expects revenue of about $7.71 billion, compared with previous outlook of $7.69 billion to $7.74 billion, and adjusted EPS of $5.62 to $5.67, compared with previous outlook of $5.62 to $5.72. Quest shares have dropped 16.3% over the last three months, compared with a 3.5% rise in the S&P 500 .

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J.C. Penney Co. Inc. said Thursday that it will launch sales of smartwatches for the holidays, starting October 30. Brands will include Samsung, LG and Garmin. Wearables will be priced in the range of $155 to about $350, with an expanded assortment online. The retailer has also introduced a new Modern Bride concept, including new fixtures and merchandise presentation. Modern Bride began as a collaboration with Conde Nast in 2011. The fine jewelry department has been given a new trademark, JCPenney Co. Fine Jewelry, Est. 1902, and training for associates working in that department has been revamped in order to improve customer service. J.C. Penney shares are down 1.1% in Thursday premarket trading, and down more than 60% for the past year. The S&P 500 index is up 19.5% for the last 12 months.

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Shares of car parts retailer Genuine Parts Co. fell about 3% in premarket trade Thursday, after third-quarter profit fell short of estimates and the company lowered profit guidance for the full year. The Atlanta-based company said it had net income of $158.4 million, or $1.08 a share, in the quarter, down from $185.3 million, or $1.24 a share, in the year-earlier period. Adjusted per-share earnings came to $1.16, below the FactSet consensus of $1.28. Sales rose to $4.1 billion from $3.9 billion, matching the FactSet consensus. “While we are disappointed with this quarter’s results, we are excited about the opportunities ahead and we move forward with a deep sense of urgency as we focus on maximizing shareholder value and positioning the Company for long-term success,” Chief Executive Paul Donahue said in a statement. The company raised its full-year sales growth forecast to 4% to 4.5% from a prior 3% to 4%, reflecting revenue to be added through acquisitions. But it lowered its profit outlook to $4.55 to $4.60 a share from a prior $4.70 to $4.75. Shares had gained 2.6% in 2017 through Wednesday, while the S&P 500 has gained 14.4%.

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All 30 of the Dow Jones Industrial Average components have traded premarket, and 28 of them are trading lower, as Dow futures slump 107 points. The biggest percentage decliner is Nike Inc.’s stock , which dropped 1.8% after a downgrade at Goldman Sachs. The next biggest decliners were shares of Apple Inc. , which shed 1.7% after the independent cellular connection feature of its Apple Watch was abruptly cut off in China, and American Express Co. , which was shedding 1.4% after the company reported third-quarter results late Wednesday and said CEO Kenneth Chenault will step down. Of the two gainers, shares of Verizon Communications Inc. rose 2% and Travelers Cos. inched up less than 0.1%, after both companies reported better-than-expected results earlier Thursday.

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Apple Inc.’s stock dropped 1.5% in premarket trade Thursday, putting it on track to suffer the biggest decline in a month, amid a broad selloff in the large-cap technology sector. Also weighing on Apple was a report in The Wall Street Journal that the new Apple Watch’s independent cellular connection feature was abruptly cut off in China, without explanation, after a brief availability with one telecom company. The stock’s premarket price decline of $2.36 would shave about 16 points off the price of the Dow Jones Industrial Average , and Dow futures were down 90 points. Futures for the tech-heavy Nasdaq 100 were down 0.6%. Apple’s stock decline would be the biggest since the stock fell $2.68, or 1.7%, on Sept. 21. The stock had climbed 5.8% over the past three months through Wednesday, while the Nasdaq 100 had gained 3.4% and the Dow had climbed 7.0%.

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Imax Corp.’s third quarter box office revenue came in above B. Riley analyst Eric Wold’s expectations, but the premium film exhibitor’s earnings will likely be hurt by the poor performance of its experiment with “Marvel’s Inhumans.” Box office revenue was $215.5 million, above Wold’s initial projection of $183.6 million and his increased September projection of of $210.4 million. “Inhumans” was initially scheduled as part of Marvel Studios’ film slate, but after being relegated to the small screen, Walt Disney Co.’s TV division partnered with Imax to premiere the first two episodes of the ABC TV show in Imax theaters. The partnership was marketed as the first time a TV show had premiered on Imax screens. The poor result of the partnership, however, drove Wold to lower Imax EBITDA estimates for the third quarter. “Even with the box office and expected revenue upside from our prior estimates, we expect the weak theatrical box office results for ‘Marvel’s Inhumans’ to weigh on third quarter EBITDA and EPS,” Wold wrote in a note to investors. Imax will report earnings before the market opens on Oct. 26. Shares of Imax have declined 33% in the year to date, while the S&P 500 index is up more than 14% and the Dow Jones Industrial Average is up more than 17%.

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