Tag: stock market

Aetna Inc. shares surged 1.3% premarket on Tuesday after the company reported a third-quarter profit beat and raised its 2017 earnings guidance. Earnings for the latest quarter rose to $838 million, or $2.52 per share, from $604 million, or $1.70 per share in the year-earlier period. Adjusted earnings-per-share were $2.45, compared with the FactSet consensus of $2.08. Revenue declined to $14.99 billion from $15.78 billion, compared with the FactSet consensus of $15.11 billion. The latest results include lower transaction and integration-related costs in 2017 than the prior year, strong performance in Aetna’s health care segment and the negative effect of lower premiums in the health care segment, including lower membership in the company’s Affordable Care Act products and the temporary suspension of the 2017 health insurer fee. Aetna also increased its 2017 earnings guidance. It now expects 2017 EPS of about $5.95, up from previous guidance of $5.46 to $5.56, and 2017 adjusted EPS of about $9.75, up from previous guidance of $9.45 to $9.55. Aetna shares have risen 11% over the last three months, compared with a 4% rise in the S&P 500 .

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Under Armour Inc. shares sank 14.2% in Tuesday premarket trading after it reported third-quarter revenue that missed expectations and issued a profit warning, due to a decline in North America demand. Net income totaled $54.2 million, or 12 cents per share, down from $128.2 million, or 29 cents per share, for the same period last year. Adjusted EPS was 22 cents, ahead of the 19-cents FactSet consensus. Revenue totaled $1.41 billion, down from $1.47 billion last year and below the $1.49 billion FactSet consensus. Under Armour’s North American revenue was down 12% in the quarter, while apparel revenue was down 8%. The company now expects revenue up at a low-single-digit percentage rate, and gross margins are expected to be down about 220 basis points, year-over-year. Adjusted EPS is expected to be 18 cents to 20 cents. The FactSet consensus is 37 cents. Under Armour shares are down 47.2% for the past year while the S&P 500 index is up 21% for the period.

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Hormel Foods Corp. said on Tuesday that it’s entered a definitive agreement to buy Columbus Manufacturing Inc. in a deal valued $850 million. The deal will increase Hormel’s position in the premium, authentic deli meat business the company said. Columbus Manufacturing is a Chicago-based premium deli meat company with annual sales of about $300 million, and is expected to grow at a rate of more than 5% a year. Hormel said in a news release that it expects the acquisition to be modestly accretive to per-share earnings in fiscal 2018, and full-year accretion in 2019 is expected to by between 6 cents to 8 cents per share. “This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers and consumers,” said Hormel Chief Executive Officer Jim Snee in a statement. “Columbus is capitalizing on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavors and products.” Hormel Foods said it will provide further commentary on the deal during a conference call at 9 a.m. Eastern. Shares of Hormel were inactive in premarket trade, but are down more than 13% in the year to date. By comparison, the S&P 500 index is up 15% and the Dow Jones Industrial Average is up more than 18%.

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Sanmina Corp. shares declined in the extended session Monday after the electronics manufacturing services provider’s quarterly results and earnings outlook fell short of Wall Street estimates. Sanmina shares fell 7% to $36.10 after hours. The company reported fiscal fourth-quarter net income of $25.8 million, or 33 cents a share, compared with $100.8 million, or $1.30 a share, in the year-ago period. Adjusted earnings were 64 cents a share. Revenue rose to $1.76 billion from $1.67 billion in the year-ago period. Analysts surveyed by FactSet had estimated 76 cents a share on revenue of $1.75 billion. For the fiscal first quarter, Sanmina estimates earnings of 68 cents to 72 cents a share on revenue of $1.75 billion to $1.8 billion. Analysts had forecast earnings of 78 cents a share on revenue of $1.76 billion.

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Shares of Rent-A-Center Inc. reversed course late Monday to rise 3.3% after the company said its board of directors was exploring “strategic and financial alternatives” to turn the company around, with J. P. Morgan investment bankers serving as financial advisers. The company has suspended its dividend until the process is concluded, it said. In a separate statement, Rent-A-Center said it lost an adjusted $8 million, or 15 cents a share, versus earnings of $5.9 million, or 11 cents a share, in the year-ago period. Revenue fell to $644 million in the quarter, compared with $694 million a year ago. Analysts polled by FactSet had expected the Plano, Texas, company to report an adjusted loss of 3 cents a share on sales of $649 million. The stock ended the regular trading day up 5.8%.

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Apple Inc. rose to record highs Monday as optimism grew for an earnings report later this week that should give early indications about sales and deliveries of its newest iPhones. Apple stock hit new intraday highs and closed up 2.3% at $166.72, its first record closing high since Sept. 1. As of the end of trading, Apple’s market cap was $860.1 billion, easily the highest for a U.S. company. Apple’s closest competitor in valuation is Google parent Alphabet Inc. , which topped $700 billion for the first time last week. Analysts still believe Apple could move higher, as they have an average price target of $179.28, according to FactSet, 7.5% higher than Monday’s closing price.

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Cray Inc. shares rose in the extended session Monday after the company announced it beat Wall Street expectations on the top and bottom line. Cray shares rose 5.8% to $18.90 after hours. The super computer maker reported a third-quarter net loss of $10.2 million, or 25 cents a share, compared to a net loss of $23 million, or 58 cents a share, in the year-ago period. Adjusted losses were 33 cents a share. Revenue rose to $79.7 million from $77.5 million in the year-ago period. Analysts surveyed by FactSet had estimated an adjusted loss of 51 cents a share on revenue of $59.5 million. Wall Street models adjusted fourth-quarter earnings of 25 cents a share on sales of $194.4 million. Cray stock has fallen 8.3% this year, with the S&P 500 index rising 15.3%.

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The U.S. Treasury expects to borrow $275 billion in the fourth quarter, an estimate that is $226 billion lower than previously estimated, according to a statement Monday. The estimate includes an end-of-quarter cash balance of $205 billion. Analysts said debt ceiling constraints are making it difficult for the government to project borrowing. Experts say the government will hit the debt ceiling in the first quarter unless Congress acts to allow borrowing. During the January-March quarter, Treasury said it expects to borrow $512 billion in net marketable debt with cash balance of $300. During the July-September quarter, Treasury borrowed $189 billion in net marketable debt and ended with a cash balance of $159 billion. The government had estimated borrowing of $96 billion for the quarter.

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The Russell 2000 fell sharply on Monday following a report that the House of Representatives was considering phasing in a cut to corporate taxes, rather than enacting them immediately. The index of small-capitalization companies was down 1.3%, on track for its biggest one-day drop since August. Bloomberg reported that the House was discussing a “gradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want — a schedule that would have the rate reach 20 percent in 2022.” The Russell is more closely correlated to tax-reform news given its components tend to have more U.S. revenue exposure than their larger multinational peers. The Dow Jones Industrial Average fell 0.4% on Monday while the S&P 500 was down 0.4% and the Nasdaq Composite Index was off 0.3%.

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Facebook Inc. stock rose to a record intraday high in late afternoon trading Monday. Facebook shares were up as much as 1% to $179.66, as of p.m. Eastern. Stock in the social-networking company has risen 56.2% so far this year, as the S&P 500 index has gained 15.3%. The company is set to report its third-quarter earnings on Wednesday after the close. Facebook has beaten Wall Street expectations every quarter since its initial public offering in 2012, except for once in 2013 and again this year. Investors value the company at $521.8 billion, according to FactSet.

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