Tag: stock market

CVS Health Corp. reported first-quarter net income of $953.0 million, or 92 cents per share, down from $1.15 billion, or $1.04 per share, for the same period last year. Adjusted EPS was $1.17, beating the $1.10 FactSet consensus. Revenue was $44.5 billion, up from $43.2 billion, and ahead of the $44.2 billion FactSet consensus. Revenue in pharmacy services was up 8.5% to $31.2 billion driven by claim volume, brand inflation and growth in specialty pharmacy. Pharmacy same-store sales fell 4.7%, impacted by about 480 basis points due to generic introductions and about 460 basis points by previously-discussed marketplace changes. Retail revenue was down 3.8% to $19.3 billion, driven largely by a 4.7% decline in same-store sales, reimbursement pressure and an increase in generic reimbursement rate. CVS confirmed its full-year EPS guidance of $5.02 to $5.18 and adjusted EPS of $5.77 to $5.93. It introduced second-quarter guidance of EPS of $1.15 to $1.19 and adjusted EPS of $1.29 to $1.33. CVS shares slipped 0.4% in Tuesday premarket trading and are down 19.2% for the past year. The S&P 500 index is up 14.7% for the last 12 months.

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Altria Group Inc. shares fell 1% in premarket trade Tuesday after the company missed first-quarter earnings expectations. It reported net income of $1.4 billion, or 72 cents per share, up from $1.2 billion, or 62 cents per share, in the year-earlier period. It reported adjusted earnings per share of 73 cents, below the FactSet consensus of 74 cents. Revenue was $6.08 billion, up from $6.07 billion in the year-earlier period, but below the FactSet consensus of $6.18 billion. It reaffirmed its full-year guidance of adjusted earnings per share between $3.26 and $3.32. The FactSet consensus for the full year was $3.30. Shares of Altria have fallen 1% in the past three months, compared to the S&P 500’s gain of 5%.

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Archer Daniels Midland Co. reported first-quarter profit and revenue misses early Tuesday. Earnings for the latest quarter rose to $339 million, or 59 cents per share, from $230 million, or 39 cents per share in the year-earlier period. Adjusted earnings-per-share were 60 cents, compared with the FactSet consensus of 62 cents. Revenue rose to $14.99 million from $14.38 million, compared with the FactSet consensus of $15.10 million. Archer Daniels shares rose 4.0% over the last three months, compared with a 4.7% rise in the S&P 500 .

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IAC Corp. late Monday confirmed it entered a deal to buy Angie’s List Inc. for $8.50 a share, valuing Angie’s List at around $505 million, and said it will combine Angie’s List with its HomeAdvisor site to form a new publicly traded company to be called ANGI Homeservices Inc. The business will maintain both Angie’s List and HomeAdvisor brands, said IAC, the company behind sites such as Investopedia and Vimeo. The deal has been approved by the companies’ boards and it is expected to close in the fourth quarter, it said in a statement. It’s the 10th publicly traded company to emerge from IAC, and the company will own 87% to 90% of the equity value of the newly created company. HomeAdvisor Chief Executive Chris Terrill will lead ANGI Homeservices, and the new company’s headquarters will remain in HomeAdvisor’s Golden, Colo. Angie’s List co-founder Angie Hicks is expected to join the board of directors of the new company. Management expects $100 million to $250 million in synergies, IAC said. Angie’s List shares rose more than 40% in late trading, while IAC shares were up 1%. Angie’s List stock has traded as low as $5.22 in the past year. It priced its initial public offering at $13 in November 2011. The company said last year it was looking for a buyer, and in the fall of 2015 rejected an unsolicited buyout from IAC that valued the company around $512 million.

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Sunesis Pharmaceuticals Inc. shares dropped in the extended session Monday after the tiny biotech said it pulled a European marketing application for a leukemia treatment. Shares of South San Francisco, Calif.-based Sunesis fell 18% to $3 in after-hours trading. The company said recent interactions with the European Medicine Agency suggested that the regulatory body was likely to adopt a negative opinion of the drug vosaroxin for the treatment of a type of leukemia in patients who were 60 years or older. Sunesis said it was reducing resources for its leukemia research and shifting them to other areas.

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Cisco Systems Inc. announced Monday that it has reached an agreement to purchase software-defined-networking startup Viptela Inc. for $610 million in cash and assumed stock awards. Viptela’s software allows for cloud-based management of networks spread over large areas or multiple sites, known as wide-area networks. Cisco has been focused on adding software offerings in order to diversify away from the networking-equipment business in which it is the biggest seller but struggling to grow revenues. “Together, Cisco and Viptela will be able to deliver next-generation SD-WAN solutions to best serve all size and scale of customer needs, while accelerating Cisco’s transition to a recurring, software-based business model,” Rob Salvagno, Cisco’s lead executive for M&A, said in a blog post Monday. Viptela is the first acquisition Cisco has announced since a $3.7 billion deal for AppDynamics in January that kept that startup from going public at a valuation of roughly half the price tag Cisco paid. Cisco seemingly got more of a deal on Viptela: The company was reportedly valued at $875 million in a funding round just a year ago, part of $110 million Viptela has raised from private investors. Cisco shares were quiet in late trading after the announcement Monday, but are up 12.4% so far this year, easily outpacing the 6.5% increase for the S&P 500 index.

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Shares of Angie’s List Inc. rallied late Monday after The Wall Street Journal reported that IAC Corp. is planning to buy the online referral marketplace for home improvement and other services. According to the report, which cited people familiar with the matter, IAC would combine Angie’s List with its HomeAdvisor site and form a new publicly traded company. IAC would pay $8.50 a share, or more than $500 million, for Angie’s List. Angie’s List had said last year it had hired advisers to review its options, and in the fall of 2015 rejected an unsolicited buyout $512 million cash offer by IAC.

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The Securities and Exchange Commission said it’s settled accounting fraud charges with a South Korean chipmaker and its former chief financial officer. According to the SEC, MagnaChip Semiconductor overstated revenues for nearly two years, and then-CFO Margaret Sakai directed or approved several fraudulent accounting practices to make it falsely appear the company had met revenue and gross margin targets. Without admitting or denying the findings in the SEC’s order, MagnaChip agreed to pay a $3 million penalty and Sakai agreed to pay a $135,000 penalty. Sakai also agreed to be barred from serving as an officer or director of a public company and from appearing or practicing before the SEC as an accountant.

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Texas Roadhouse Inc. shares rallied in the extended session Monday after the casual-dining chain topped Wall Street estimates for the quarter. Texas Roadhouse shares surged 8.3% to $49.80 after hours. The company reported first-quarter earnings of 48 cents a share, which included a legal charge of 13 cents a share, for adjusted earnings of 61 cents a share on revenue of $567.7 million. Analysts surveyed by FactSet expected 58 cents a share on revenue of $560.8 million.

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Advanced Micro Devices Inc. shares dropped more than 7% in late trading Monday after the chip maker announced quarterly earnings largely in-line with analysts’ estimates amid the launch of new Ryzen chips. AMD reported a first-quarter net loss of $73 million, or 8 cents a share, on sales of $984 million. After adjusting for stock-based compensation and other effects, the company claimed a loss of 4 cents a share. Analysts on average expected AMD to report an adjusted loss of 4 cents a share on sales of $985 million, according to FactSet; AMD had forecast sales of $951 million to $1.02 billion. While AMD mostly met expectations, the Ryzen launch likely had some investors expecting a beat and raise, but AMD said other factors got in the way of a big Ryzen bump. Revenue in the PC group declined sequentially, which AMD said “was primarily due to a decrease in mobile and graphics processor sales largely offset by initial revenue from high performance Ryzen desktop processors.” The company’s forecast was also on target with Wall Street forecasts, as AMD said the current quarter’s sales should rise 17% from the past quarter, plus or minus 3%, which would put the midpoint of the forecast at roughly $1.15 billion in revenue. Analysts on average were expecting a forecast of $1.12 billion, according to FactSet. AMD shares have more than tripled in the past year, gaining 283.7% in that time as the S&P 500 index has increased 15.7%, but they took a hit Monday afternoon, dropping to less than $12.60 after closing with a 2.4% gain at $13.62.

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