Shares of Teradata Corporation (NYSE: TDC) have plunged in trading today after investors were disappointed with the company’s third-quarter results estimates. TDC’s expectations for the quarter fell short of consensus forecast. TDC, which reports third-quarter results on October 31, said that it expects to post adjusted earnings of $0.69-$0.70 per share for the third quarter. Revenue for the quarter is estimated at about $665 million. Analysts were expecting Teradata to report earnings of $0.81 per share and revenue of $699 million for the third quarter. TDC shares were last trading 16.22% lower at $44.05 on above average volume of 14 million.
Category: Large Cap Growth Stocks
Deutsche Bank Cuts Expedia Price Target and Rating
Shares of online travel planner, Expedia Inc. (NASDAQ: EXPE) plunged on Monday after Deutsche Bank cut its rating on the stock to a “hold” from a “buy”. The price target was slashed to $51 from $66. In a research report, Deutsche Bank’s equity research analyst, Ross Sandler said Expedia was now facing much more intense competition in the U.S. market. Sandler was also critical about Expedia’s decision to replace Hotels.com management team last week, adding that such move could push down the value of the stock towards Deutsche Bank’s estimate while the management transition is taking place.
Gap Shares Plunge As September Same-Store Sales Fall
Just like any other retailer, The Gap Inc. (NYSE: GPS) also saw its sales falling in September. Economic uncertainty caused by the policy impasse in Washington prompted consumers to spend money frugally. Gap said on Thursday that September same-store-sales fell 3% while analysts had expected a gain of 1.6%, according to a data compiled by Thomson Reuters. Sales at Banana Republic stores declined 5%; it dipped 3% at GAP stores while it slipped 2% at Old Navy stores. Shares were down nearly 7% by mid-day trade.
JP Morgan Chase Swings to a Q3 Loss on Legal Expenses
The United States’ largest bank by assets, JP Morgan Chase & Co. (NYSE: JPM) said on Friday that it swung in to fiscal third quarter loss as heavy litigation expenses hurt the bottom line. Adjusted earnings beat analysts’ consensus estimate but revenue missed the forecast. For the latest period, the company took a charge of $9.2 billion linked to litigation expenses, resulting in a net loss of $380 million compared to a net profit of $5.7 billion, in the same quarter of last year. On adjusted basis, the bank earned $1.42 a share while analysts polled by Thomson Reuters had forecasted earnings of $1.17 a share. Revenue declined 8% to $23.9 billion.
Teva Pharmaceuticals to Slash 5000 Jobs
Israeli drug maker, Teva Pharmaceuticals Industries Ltd. (ADR) (NYSE: TEVA) announced on Thursday that it will slash about 5,000 jobs, mainly by the end of next year as part of its broader restructuring plan, aimed at narrowing its oversized business and streamlining operations. The Company intends to focus on fast growing generic drug business as well as its core R&D programs. Teva expects to save $2 billion in annual costs by the end of 2017. Shares were gaining following the announcement. Teva, which is one the world’s leading generic drug maker, struggled in the recent past due to declining sales-trend in its both generic and branded-drugs segments.
Quest Diagnostics Warns Q3 Earnings to Miss Estimate
Laboratory test services provider, Quest Diagnostics Inc. (NYSE: DGX) expects fiscal third quarter profit to miss analysts’ estimation. The Company cited drop in number of tests ordered during the latter part of the quarter for a downbeat guidance. Quest Diagnostics now expects non-GAAP earnings of $1.02 a share down from its earlier projection of $1.15 a share. Analysts had forecasted earnings of $1.20 a share. The Company also anticipates revenue from continuing operations to come at $1.79 billion, which is below analysts’ expectation of $1.84 billion.
Family Dollar FY 2014 Outlook Cautious
Discount retailer, Family Dollar Stores Inc. said on Wednesday that it is bracing for a tough new fiscal year as shoppers are spending money only on essentials even as it handed better-than-expected fiscal fourth quarter profit, thanks to its costs cutting measures. However, sales in the latest period were weaker-than-expected and same-store-sales came in flat. Analysts had forecasted same-store-sales to grow by 2%. The Company said that both customer traffic and average money spent per transaction were also flat. For the current quarter, Family Dollar anticipates same-store-sales to show low-single digit percentage growth compared to 6.6% increase in the year-ago period.
Men’s Wearhouse Rejects $2.4 Billion Takeover Bid from Jos. A. Bank
Men’s Wearhouse board rejected a $2.4 takeover bid from smaller rival Jos. A. Bank Clothiers on Wednesday, marking it as the second occasion when the company has turned down the idea of selling the clothing chain. Earlier in June, Men’s Wearhouse board fired its founder and biggest shareholder, George Zimmer, blaming him that he was forcing the board to make the company private. The offer of $48 a share implied a premium of 42% over Men’s Wearhouse closing stock price on Sept. 17, a day before when Jos. A. Bank privately pitched the offer to Men’s Wearhouse executives over a phone call.
McKesson in Advanced Stage of Talks to Buy German Company Celesio
According to the Wall Street Journal, McKesson Corporation (NYSE: MCK) is in final stage of talks with Franz Haniel & Cie to acquire its drug distribution unit, Celesio, in a deal worth more than $ 5 billion. Founded in 1835, Stuttgart based Celesio supplies drugs to 65,000 pharmacies and hospitals, daily with nearly 130,000 pharmaceutical products. McKesson has offered about 22 euro per share, which translates in to 3.74 billion euro ($ 5.08 billion), a premium of 30% over the stock’s most recent closing price.
Wolverine World Wide Beats Q3 Estimates, Lifts Full-Year Earnings Guidance
Casual footwear and apparel maker, Wolverine World Wide Inc. (NYSE: WWW) said on Tuesday that fiscal third-quarter earnings rose 66% as revenue continued to show an improvement, aided by the acquisition of Collective Brands, last year. Shares edged up as both adjusted earnings and revenue topped analysts’ consensus estimate, according to a data compiled by Thomson Reuters. The maker of Hush Puppies and Merrell shoes also lifted its projections for full-year adjusted earnings. The Company now expects earnings to be in the range of $2.73 to $2.83 a share, which is in-line with Wall Street’s estimates. However, the revenue outlook was narrowed to $2.71 billion to $2.73 billion from $2.7 billion to $2.775 billion.