AI
Friday, July 27, 2012 11:57:30 AM
ER 7/26: Facebook, Starbucks, AuthenTec, Expedia, Arch Coal
U.S. stocks were trading up Friday as the Dow Jones Industrial Average recently added 58 points to 12946, the Standard & Poor's 500-stock index rose nine points to 1369 and the Nasdaq Composite rose 21 points to 2915. Among the companies with shares actively trading were Facebook Inc. (FB), Starbucks Corp. (SBUX) and AuthenTec Inc. (AUTH).
Facebook Inc. ($23.00, -$3.85, -14.32%) posted a second-quarter loss--due largely to heavy employee-compensation costs and other rising expenses--and offered little insight into its progress in making money through mobile devices. Shares traded at their lowest level ever Friday.
Starbucks Corp.'s ($46.58, -$5.83, -11.12%) fiscal third-quarter earnings rose 19%, but the coffee giant said it saw slowing same-store sales growth in June and lowered its earnings guidance going forward. Earnings missed the company's own and analysts' estimates, marking the first time since the quarter ended December 2008 that Starbucks has fallen short of analysts' expectations. The news also weighed on Caribou Coffee Co. (CBOU, $11.46, -$0.51, -4.26%), a Starbucks competitor.
IT-security firm AuthenTec Inc. ($8.27, +$3.20, +63.12%) shares surged as that Apple Inc. (AAPL, $572.61, -$2.27, -0.39%) has agreed to buy the fingerprint authentication sensor maker for about $350 million. AuthenTec holders will receive $8 a share in cash, a 58% premium over Thursday's close.
Expedia Inc.'s (EXPE, $57.33, +$11.62, +25.42%) robust hotel revenue growth offset pressure from continued heavy technology spending, keeping the second quarter's profit decline unexpectedly shallow. Since online travel agencies have posted mixed results, the better-than-expected results from Expedia were welcome news for investors uncertain about how the industry is faring. Shares of competitor priceline.com Inc. (PCLN, $655.89, +$27.57, +4.39%) were also up.
Better-than-feared second-quarter results at Arch Coal Inc. (ACI, $5.84, +$0.58, +11.03%) gave the coal company a boost. Despite logging $624 million of write-downs and cutting its 2012 sales forecast, Arch Coal anticipates second-half volumes to be "slightly higher" overall. Also, CFO John Drexler notes the company now has no debt maturing for four years, giving the company financial flexibility to deal with a prolonged and sustained downturn.
Other Stocks to Watch
Acme Packet Inc. (APKT, $14.11, -$2.08, -12.85%) swung to a slight loss in its second-quarter as the data-delivery company's revenue and margins weakened. The company sharply lowered its full-year guidance.
Amarin Corp. PLC (AMRN, $13.91, -$1.41, -9.21%) said the U.S. Food and Drug Administration has approved its Vascepa fish-oil heart pill for patients with high triglycerides, but it is still awaiting a decision on whether the capsules will be granted new chemical entity status that would give the drug a five-year period of exclusivity.
Amgen Inc.'s (AMGN, $81.76, +$2.47, +3.11%) second-quarter earnings rose 8.2% as weaker sales of the biopharmaceutical company's anemia drugs were offset by growth of other treatments.
Aon PLC's (AON, $48.83, +$2.35, +5.06%) second-quarter earnings fell 4.7% as the insurance brokerage reported a lower profit in its human resources segment and higher operating expense. However, the company said it continues to anticipate improved performance in the second half of the year and that underlying performance is on track with Aon's long-term targets.
Blucora Inc. (BCOR, $15.79, +$3.04, +23.84%) swung to a second-quarter profit--and forecast strong growth in the current quarter--as the company's web search business saw substantial improvement and its year-ago period was weighed down by the sale of an underperforming business.
CA Inc.'s (CA, $24.12, -$2.19, -8.32%) fiscal first-quarter earnings edged down 0.4% after the business-computing company sold less new software than expected, prompting CA to scale back revenue goals for the rest of its fiscal year.
Cerner Corp.'s (CERN, $73.40, -$4.64, -5.95%) second-quarter earnings rose a better-than-expected 36% as the hospital-information technology vendor saw revenue jump in both its main segments, led by system sales. However, the company predicted mostly downbeat third-quarter results.
Clearwire Corp.'s (CLWR, $1.09, +$0.08, +8.10%) second-quarter loss narrowed as the wireless-data company continues its talks for a network partnership or possible asset sales.
Although Coinstar Inc.'s (CSTR, $51.61, -$7.61, -12.85%) second-quarter earnings jumped 38% as the company again saw growth in its Redbox DVD-rental business results, revenue grew less than analysts expected.
Coventry Health Care Inc.'s (CVH, $33.17, +$2.45, +7.98%) second-quarter earnings beat expectations, despite falling 59%, as the company reiteratesd its full-year guidance. Coventry is still losing money on medical care in Kentucky but not as sharply, as it tries to create a viable market.
Deckers Outdoor Corp.'s (DECK, $43.87, +$1.74, +4.13%) second-quarter loss widened as the footwear maker's expenses continued to offset sales gains. But the company's earnings and revenue, helped by an acquisition, beat Wall Street estimates.
Green Dot Corp.'s (GDOT, $9.63, -$13.69, -58.71%) second-quarter earnings slipped 1.5% as the provider of prepaid financial services' margins weakened. Results missed analyst expectations and as the company also lowered its full-year outlook, citing a greater level of uncertainty in the prepaid market.
Higher One Holdings Inc. (ONE, $10.02, -$1.53, -13.25%) shares plummeted after SunTrust Robinson Humphrey lowered its rating to neutral from buy, citing a loss of conviction in defensibility of the company's model. Competition has increased and the firm said entry barriers are lower than previously expected. There is significant uncertainty on Higher One's long-term sustainable organic revenue and per-share earning growth, said SunTrust.
Shares of Informatica Corp. (INFA, $31.00, +$2.06, +7.12%) surged Friday as investors appeared to "breathe a sigh of relief" following the in-line second-quarter results from the software company, JMP analysts wrote. Shares had plunged by more than a third after the company earlier this month warned second-quarter earnings and revenue would miss its earlier expectations, saying it didn't adapt as rapidly as it should have to changing economic conditions.
Shares of Medifast Inc. (MED, $24.32, +$3.69, +17.89%) surged to a 52-week high after the weight-loss company reported better-than-expected results in the second quarter and provided third-quarter guidance above forecasts. Helping drive results was improved profitability in the company's weight control center business, which swung to the black after three straight quarters of losses, Wedbush analysts noted.
Medicaid-insurer Molina Healthcare Inc. (MOH, $23.19, -$2.10, -8.30%) posted a second-quarter loss as it digests problems with high costs in a newly expanded Texas market. The company also kept its guidance on ice after withdrawing it in early June, when the Texas problems came to light.
Netgear Inc.'s (NTGR, $32.41, -$2.59, -7.40%) second-quarter earnings rose 4.5% as the networking company's revenue improved, though adjusted profits missed analyst expectations. The company also offered a downbeat outlook for the current quarter.
http://online.wsj.com/article/BT-CO-20120727-711696.html
U.S. stocks were trading up Friday as the Dow Jones Industrial Average recently added 58 points to 12946, the Standard & Poor's 500-stock index rose nine points to 1369 and the Nasdaq Composite rose 21 points to 2915. Among the companies with shares actively trading were Facebook Inc. (FB), Starbucks Corp. (SBUX) and AuthenTec Inc. (AUTH).
Facebook Inc. ($23.00, -$3.85, -14.32%) posted a second-quarter loss--due largely to heavy employee-compensation costs and other rising expenses--and offered little insight into its progress in making money through mobile devices. Shares traded at their lowest level ever Friday.
Starbucks Corp.'s ($46.58, -$5.83, -11.12%) fiscal third-quarter earnings rose 19%, but the coffee giant said it saw slowing same-store sales growth in June and lowered its earnings guidance going forward. Earnings missed the company's own and analysts' estimates, marking the first time since the quarter ended December 2008 that Starbucks has fallen short of analysts' expectations. The news also weighed on Caribou Coffee Co. (CBOU, $11.46, -$0.51, -4.26%), a Starbucks competitor.
IT-security firm AuthenTec Inc. ($8.27, +$3.20, +63.12%) shares surged as that Apple Inc. (AAPL, $572.61, -$2.27, -0.39%) has agreed to buy the fingerprint authentication sensor maker for about $350 million. AuthenTec holders will receive $8 a share in cash, a 58% premium over Thursday's close.
Expedia Inc.'s (EXPE, $57.33, +$11.62, +25.42%) robust hotel revenue growth offset pressure from continued heavy technology spending, keeping the second quarter's profit decline unexpectedly shallow. Since online travel agencies have posted mixed results, the better-than-expected results from Expedia were welcome news for investors uncertain about how the industry is faring. Shares of competitor priceline.com Inc. (PCLN, $655.89, +$27.57, +4.39%) were also up.
Better-than-feared second-quarter results at Arch Coal Inc. (ACI, $5.84, +$0.58, +11.03%) gave the coal company a boost. Despite logging $624 million of write-downs and cutting its 2012 sales forecast, Arch Coal anticipates second-half volumes to be "slightly higher" overall. Also, CFO John Drexler notes the company now has no debt maturing for four years, giving the company financial flexibility to deal with a prolonged and sustained downturn.
Other Stocks to Watch
Acme Packet Inc. (APKT, $14.11, -$2.08, -12.85%) swung to a slight loss in its second-quarter as the data-delivery company's revenue and margins weakened. The company sharply lowered its full-year guidance.
Amarin Corp. PLC (AMRN, $13.91, -$1.41, -9.21%) said the U.S. Food and Drug Administration has approved its Vascepa fish-oil heart pill for patients with high triglycerides, but it is still awaiting a decision on whether the capsules will be granted new chemical entity status that would give the drug a five-year period of exclusivity.
Amgen Inc.'s (AMGN, $81.76, +$2.47, +3.11%) second-quarter earnings rose 8.2% as weaker sales of the biopharmaceutical company's anemia drugs were offset by growth of other treatments.
Aon PLC's (AON, $48.83, +$2.35, +5.06%) second-quarter earnings fell 4.7% as the insurance brokerage reported a lower profit in its human resources segment and higher operating expense. However, the company said it continues to anticipate improved performance in the second half of the year and that underlying performance is on track with Aon's long-term targets.
Blucora Inc. (BCOR, $15.79, +$3.04, +23.84%) swung to a second-quarter profit--and forecast strong growth in the current quarter--as the company's web search business saw substantial improvement and its year-ago period was weighed down by the sale of an underperforming business.
CA Inc.'s (CA, $24.12, -$2.19, -8.32%) fiscal first-quarter earnings edged down 0.4% after the business-computing company sold less new software than expected, prompting CA to scale back revenue goals for the rest of its fiscal year.
Cerner Corp.'s (CERN, $73.40, -$4.64, -5.95%) second-quarter earnings rose a better-than-expected 36% as the hospital-information technology vendor saw revenue jump in both its main segments, led by system sales. However, the company predicted mostly downbeat third-quarter results.
Clearwire Corp.'s (CLWR, $1.09, +$0.08, +8.10%) second-quarter loss narrowed as the wireless-data company continues its talks for a network partnership or possible asset sales.
Although Coinstar Inc.'s (CSTR, $51.61, -$7.61, -12.85%) second-quarter earnings jumped 38% as the company again saw growth in its Redbox DVD-rental business results, revenue grew less than analysts expected.
Coventry Health Care Inc.'s (CVH, $33.17, +$2.45, +7.98%) second-quarter earnings beat expectations, despite falling 59%, as the company reiteratesd its full-year guidance. Coventry is still losing money on medical care in Kentucky but not as sharply, as it tries to create a viable market.
Deckers Outdoor Corp.'s (DECK, $43.87, +$1.74, +4.13%) second-quarter loss widened as the footwear maker's expenses continued to offset sales gains. But the company's earnings and revenue, helped by an acquisition, beat Wall Street estimates.
Green Dot Corp.'s (GDOT, $9.63, -$13.69, -58.71%) second-quarter earnings slipped 1.5% as the provider of prepaid financial services' margins weakened. Results missed analyst expectations and as the company also lowered its full-year outlook, citing a greater level of uncertainty in the prepaid market.
Higher One Holdings Inc. (ONE, $10.02, -$1.53, -13.25%) shares plummeted after SunTrust Robinson Humphrey lowered its rating to neutral from buy, citing a loss of conviction in defensibility of the company's model. Competition has increased and the firm said entry barriers are lower than previously expected. There is significant uncertainty on Higher One's long-term sustainable organic revenue and per-share earning growth, said SunTrust.
Shares of Informatica Corp. (INFA, $31.00, +$2.06, +7.12%) surged Friday as investors appeared to "breathe a sigh of relief" following the in-line second-quarter results from the software company, JMP analysts wrote. Shares had plunged by more than a third after the company earlier this month warned second-quarter earnings and revenue would miss its earlier expectations, saying it didn't adapt as rapidly as it should have to changing economic conditions.
Shares of Medifast Inc. (MED, $24.32, +$3.69, +17.89%) surged to a 52-week high after the weight-loss company reported better-than-expected results in the second quarter and provided third-quarter guidance above forecasts. Helping drive results was improved profitability in the company's weight control center business, which swung to the black after three straight quarters of losses, Wedbush analysts noted.
Medicaid-insurer Molina Healthcare Inc. (MOH, $23.19, -$2.10, -8.30%) posted a second-quarter loss as it digests problems with high costs in a newly expanded Texas market. The company also kept its guidance on ice after withdrawing it in early June, when the Texas problems came to light.
Netgear Inc.'s (NTGR, $32.41, -$2.59, -7.40%) second-quarter earnings rose 4.5% as the networking company's revenue improved, though adjusted profits missed analyst expectations. The company also offered a downbeat outlook for the current quarter.
http://online.wsj.com/article/BT-CO-20120727-711696.html
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