Companies that beat earnings estimates
On April 17, a number of key earnings statements were released, revealing how companies have performed in the latest quarter, and whether they have met, surpassed, or fallen short of expectations. Investors got an assessment of past performance as well as an outlook for the future.
General Electric (GE) beat Wall Street’s expected $0.30 EPS (earnings per share) by reporting $0.31 EPS in its latest fiscal quarter. Honeywell International (HON) reported $1.41 EPS against an expected $1.39, and Reynolds American (RAI) reported $0.86 against an expected $0.79.
The stock market in general, as gauged by the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) that track the benchmark S&P 500 Index, was down 0.68%. However, the stocks of companies such as Mattel (MAT), Mylan (MYL), and Newmont Mining (NEM) were up by 5.84%, 4.46%, and 3.20%, respectively.
Mattel was up because it reported $922.7 million in revenues for the quarter against an expected $898 million. Investors in Mattel were also upbeat about an announced partnership with Quirky that will see the companies collaborate on the launch of new toys for its Barbie, Fisher-Price, and Hot Wheels brands.
Gold climb helped Newmont Mining gain 3.2%
Meanwhile, Mylan executive chairman and former CEO Robert Coury poured cold water on a possible Teva Pharmaceuticals acquisition deal. And this sent the company’s stock up.
Gold mining company Newmont Mining was up 3.2% on Friday’s close as gold rallied on inflation data release in the US. Spot gold was up 0.6%.
The earnings reports shared the limelight with important economic indicator releases in the US, including the inflation rate and the leading indicators index.
Consumer prices in the Eurozone remain in negative territory. Inflation was reported to be -0.1% in March. So, the Eurozone remains in a state of deflation.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.