UBS on Friday upgraded the online marketplace and Kindle maker, Amazon.com Inc. (NASDAQ: AMZN) to a “buy” from a “neutral” and increased the price target to $385 from $305. UBS’s analyst, Eric Sheridan said that Amazon’s decision to hire 70,000 seasonal employees for the crucial holiday season quarter, reflects its bullish view for the fiscal fourth quarter. Besides, Sheridan also said that the Company’s advertising business is also “unappreciated” even as Amazon’s Kindle ecosystem is showing expansion. Sheridan expects the Company to post fiscal third quarter results in-line with Wall Street’s estimates. Amazon is scheduled to reports fiscal third quarter results on Thursday after the closing bell.
Month: October 2013
Verizon Communications Shares Rise Sharply after Q3 Results
Shares of Verizon Communications Inc. (NYSE: VZ) rose sharply after the company announced its third-quarter financial results. The company’s adjusted earnings for the quarter came in at $0.77 per share, compared to $0.64 per share reported for the same period in the previous year. Revenue for the quarter stood at $30.28 billion, compared to $30.16 billion reported for the same period in the previous year. Lowell C. McAdam, Verizon’s CEO said that the strong third-quarter results reflect the company’s long-term investment in reliable, high-quality networks to deliver value to customers. VZ shares ended the day 3.49% higher at $48.90.
Goldman Sachs Shares End Lower after Q3 Results
Goldman Sachs Group Inc. (NYSE: GS) shares ended sharply lower on Thursday as investors digested the Wall Street giant’s third-quarter results. Goldman’s third-quarter revenue fell sharply due to a 44% drop in its fixed income, currency and commodities trading revenue. The bank’s quarterly revenue also missed consensus forecast. Lloyd Blankfein, CEO of the New York City-based bank, said that the third-quarter results reflected a period of slow client activity. Goldman Sachs shares ended the day 2.42% lower at $158.32.
Stanley Black & Decker Lowers Full-Year Earnings Guidance
Stanley Black & Decker Inc. (NYSE: SWK) reported on Wednesday that fiscal third-quarter net income jumped 44%, driven mainly by higher revenue from industrial and construction divisions; nonetheless, shares were hammered after the tool maker slashed its full-year earnings guidance. Core earnings barely managed to beat analysts’ expectation but revenue missed the estimation. For the full-year fiscal, the Company now anticipates earnings to be in the range of $4.90 to $5 a share down from earlier projections of $5.40 to $5.65 a share. The Company blamed weakness in emerging markets, the impact of the partial government shutdown in the U.S and very little recovery in the security segment’s margin rate for a downbeat outlook.
Mattel Tops Q3 Expectations
Mattel Inc.’s (NASDAQ: MAT) fiscal third-quarter results topped analysts’ expectations. The Company said that strong revenue growth across all geographical segments and wider margins boosted its top line and bottom line growth. For the latest period, Mattel posted net income of $442.8 million or $1.21 a share compared to a profit of $365.9 million or $1.04 a share, in the year-ago quarter. Sales (including negative impact of foreign exchange fluctuation) increased 6% to $2.21 billion. While sales in the North American region rose 3%, it climbed 9% in international markets. Analysts surveyed by FactSet had forecasted earnings of $1.12 a share on revenue of $2.17 billion.
Citigroup Reports Q3 Results
Global banking giant Citigroup Inc. (NYSE: C) has reported its third-quarter results, posting earnings of $1.02 per share on revenue of $18.2 billion. Citi’s earnings and revenue for the quarter missed consensus forecast. Analysts were expecting the New York City-based bank to report third-quarter earnings of $1.04 per share and revenue of $18.74 billion. Despite the weaker-than-anticipated results, CEO Michael Corbat noted that the bank performed relatively well in the challenging, uneven macro environment. Shares of Citigroup were last trading 0.28% higher at $49.74 on above average volume of 28.60 million.
Teradata Corporation Shares Tumble on Q3 Results Estimates
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.
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.
Facebook Buys Israeli Start-Up App Developer, Onavo
Facebook (NASDAQ: FB) has agreed to acquire an Israeli start-up app maker, Onavo for an undisclosed sum. Onavo, which was founded three year ago, develops mobile utility app, helping users to cut phone costs through more effective use of data. According to Calcalist, a financial website, the online social networking giant is paying between $150 million to $200 million. After the deal is closed, Onavo app will continue to remain as a standalone brand. The deal marks Facebook’s biggest ever acquisition in Israel. Shares, however, fell on Monday. At last check, shares were down 2.20% to 48.03.
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.