26 min ago
Mosaic Co. shares slid more than 2% in premarket trade Wednesday, after JPMorgan downgraded the stock to underweight from neutral and said it expects potash and phosphate fertilizer pricing to remain weak. Analysts led by Jeffrey Zekauskas cut their stock price target to $18 from $20. Mosaic cut its phosphate production by 500kt in the first half of 2019, due to weak demand stemming from wet weather. Some investors expect that more normal weather conditions in 2020 should lift the supply/demand balance and lead to a better price outcome. "We are less optimistic," the analysts wrote in a note to clients. "Phosphate imports into the U.S. actually rose by 500kt for the first nine months of 2019, which effectively offset the effects of the Mosaic curtailment. We note that phosphate imports into the U.S. were also heavy in 2018 when they increased by more than 1m tons." JPMorgan continues to view Mosaic as a good long-term investment, but believes there are more favorable entry points than at present. The stock has fallen 28% in 2019, while the S&P 500 has gained 23%.
54 min ago
Abbott Laboratories said Wednesday that Chief Executive Miles White will step down on March 31, 2020, after 21 years in the role. White, who joined Abbott in 1984, will remain executive chairman. The healthcare company said Robert Ford, who has been chief operating officer since October 2018 and a 23-year Abbott veteran, will succeed White as CEO. Abbott's stock slipped 0.3% in premarket trading. It has rallied 21.4% over the past 12 months through Tuesday, while the SPDR Health Care Select Sector ETF has gained 4.7% and the S&P 500 has advanced 13.6%.
57 min ago
Tilray Inc. shares fell 3.2% in premarket trade Wednesday, as analysts weighed in on a mixed set of earnings with Benchmark analyst Mike Hickey slashing his price target in half. Hickey lowered his price target to $40 from $80 and said profitability again disappointed. "We remain cautious on the Canadian regulatory construct, and expect on-going near term supply and distribution constraints," the analyst wrote in a note to clients. He maintained his buy rating on Tilray stock. MKM analyst Bill Kirk said where other cannabis companies have missed on the top and bottom line, Tilray only missed on the bottom line. "We like Tilray's strategy around: 1) entering the U.S. via hemp seed food products, which serves as a launch pad as regulations change; 2) cultivating in Portugal to service the European markets; and 3) being open to less capital intensive raw material sourcing," Kirk wrote in a note to clients. The analyst has a neutral rating on Tilray stock, which has fallen 69% in 2019, while the ETFMG Alternative Harvest ETF has fallen 26% and the S&P 500 has gained 23%.
1 hour ago
Energizer Holdings Inc. stock rose 3.6% in premarket trade Wednesday, after the battery maker blew past estimates for its fiscal fourth quarter. The company said it had net income of $46.2 million, or 61 cents a share, in the quarter to Sept. 30, up from $1.5 million, or 2 cents a share, in the year-earlier period. Adjusted per-share earnings came to 93 cents, ahead of the 81 cents FactSet consensus. Sales rose to $719.0 million from $457.2 million, also ahead of the $713.0 million FactSet consensus. Sales were boosted by acquisitions in the battery and auto care businesses. The company is now expecting fiscal 2020 sales to grow 9% to 10% and adjusted EPS to range from $3.00 to $3.20, compared with a FactSet consensus of $3.22. Shares have fallen 7% in 2019, while the S&P 500 has gained 23%.
1 hour ago
The U.S.-listed shares of Canada Goose Holdings Inc. surged 5.3% in premarket trading Wednesday, after the Canada-based luxury outdoor apparel maker reported fiscal second-quarter earnings that rose well above expectations. Net income for the quarter to Sept. 29 increased to CAD$58.0 million ($43.7 million), or CAD55 cents a share, from CAD$52.0 million, or CAD45 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS came to CAD57 cents, above the FactSet consensus of CAD43 cents. Revenue grew 28% to CAD$294.0 million ($221.6 million), above the FactSet consensus of CAD$266.8 million. Wholesale revenue rose 22% to CAD$219.8 million, above the FactSet consensus of CAD$193.5 million, and direct-to-consumer (DTC) revenue jumped 47% to CAD$74.2 million to beat expectations of CAD$73.7 million. The company affirmed its fiscal 2020 outlook. The stock has slumped 10.7% year to date through Tuesday, while the S&P 500 has gained 23.3%.
2 hours ago
Shares of Luckin Coffee Inc. shot up 7.6% in premarket trading Wednesday, after the China-based coffee seller reported wider third-quarter loss but revenue that rose above expectations. The net loss was RMB531.9 million ($74.4 million), or RMB3.60 per American Depository Share, after a loss of RMB484.9 million, or RMB2.24 per ADS a year ago. Excluding non-recurring items, the adjusted per-ADS loss was RMB2.08, compared with the FactSet consensus for loss per ADS was RMB2.75. Revenue rose to RMB1.54 billion ($219.6 million) from RMB240.8 million, to beat expectations of RMB1.47 billion. Average monthly items sold were 44.2 million, up from 7.8 million a year ago, while the average monthly transacting customers grew to 9.3 million from 1.9 million. "During the third quarter, sales from freshly-brewed coffee drinks continued to maintain very strong growth, and we believe we will reach our goal to become the largest coffee player in China by the end of this year," said Chief Executive Jenny Qian. The stock. which went public on May 17, has tumbled 22.7% over the past three months, while the S&P 500 has gained 5.7%.
2 hours ago
Apollo Global Management said it is going to buy Tech Data for $5.4 billion, or $130 a share. The deal represents a 24.5% premium to its 30-day average closing price ending Oct. 15, before there was speculation of a buyout. Tech Data closed Tuesday at $129.87. The terms say Tech Data will be permitted to actively solicit alternative acquisition proposals from third parties during a "go-shop" period from the date of the agreement until Dec. 9, 2019. The Tech Data board of directors has unanimously approved the transaction. Bank of America advised Tech Data, and Citi was lead financial adviser for Apollo.
6 hours ago
The New Zealand dollar surged Wednesday after the country's central bank defied expectations for an interest rate cut, and left policy unchanged. The kiwi dollar jumped 1.1% to 0.6402 U.S. cents. In a statement, the Reserve Bank of New Zealand said at it was leaving the Official Cash Rate at 1% as economic developments since August "do not warrant a change to the already stimulatory monetary policy setting at this time." The central bank slashed its benchmark rate to an all-time low of 1% in August, amid forecasts for tougher economic conditions. Expectations had widely been calling for a cut of 25 basis points, said Ipek Ozkardeskaya, senior market analyst at London Capital Group, in a note to clients. "The RBNZ was the first among the G10 central banks to lower its rates this year faced with the slowing global growth. It may now be the first to pause the monetary easing despite the prospect of a 'subdued' economic growth for the rest of the year," said Ozkardeskaya.
12 hours ago
Chesapeake Energy Corp. explained a potential reason for the latest big drop for its beleaguered stock late Tuesday, sending shares higher in late trading. In a news release, the company announced that NGP Energy Capital Management LLC, distributed its 310.8 million shares to the partners of investment funds that NGP manages before the market opened Tuesday. According to FactSet, the 310.8 million shares is the largest stake held in the company at 15.9%, though it lists the owner by a slightly different name, Natural Gas Partners LLC. "Chesapeake continues to strongly believe our current capital and operating program, coupled with the planned 30% reduction in capital expenditures in 2020, will strengthen the financial position of the company for the long term," Chief Executive Doug Lawler said in Tuesday's announcement. Chesapeake shares fell to their lowest prices in more than 25 years on Tuesday, continuing a losing streak that has destroyed its valuation. In late trading, Chesapeake shares gained 7.3% after the announcement.
14 hours ago
Skyworks Solutions Inc. shares slipped 4% in after-hours trading Tuesday after the semiconductor company reported a big drop in fourth-quarter revenue year-over-year. Skyworks reported net income of $210.6 million, or $1.22 a share, compared with net income of $285.5 million, or $1.58 in the year-ago period. Adjusted for one-time items, the company reported earnings of $1.52 a share, compared with $1.94 a share a year ago. Revenue plunged 22% to $827.4 million from $1 billion a year ago. Analysts surveyed by FactSet had expected adjusted earnings of $1.50 a share on revenue of $825 million. Skyworks shares are up 51% this year. The S&P 500 index has gained 23% this year.
15 hours ago
Facebook Inc. just dove into payment systems with a service across Facebook, Messenger, Instagram, and WhatsApp. Facebook Pay, announced in a blog post Tuesday, consolidates its massive social media applications more tightly at a time when politicians and some lawmakers are calling for the company to be broken up. "Facebook Pay is part of our ongoing work to make commerce more convenient, accessible and secure for people on our apps," Deborah Liu, vice president of marketplace and commerce, said in the post. The payment-processing service, considered a competitor to Apple Inc.'s Apple Pay and Square Inc. , begins rolling out this week on Facebook and Messenger. Facebook shares are up 48% this year. The S&P 500 index is up 23% this year. Facebook's shares rose 2.6% on Tuesday, while Square's stock fell 3.5%.
16 hours ago
ADT Inc. shares jumped as much as 7% in after-hours trading Tuesday after the residential and commercial security company reported a vault in third-quarter revenue. ADT reported a net loss of $182 million, or 25 cents a share, compared with a net loss of $236 million, or 31 cents, in the year-ago period. Revenue rose 13% to $1.301 billion from $1.15 billion a year ago. Analysts surveyed by FactSet had expected EPS of 21 cents a share on revenue of $1.275 billion. ADT also said that it had priced a special dividend related to the sale of its Canadian operations at 70 cents a share, and will pay it on Dec. 23. ADT shares are up 29% this year. The S&P 500 index has gained 23% this year.
16 hours ago
Datadog Inc. received strong early reviews in its earnings debut Tuesday afternoon, as shares jumped more than 10% following its first report since going public. The enterprise-software company, which specializes in monitoring and overseeing cloud-based network traffic, priced its IPO at $27 a share in September, and has traded higher than that price since. On Tuesday, it reported third-quarter losses of $4.2 million, or 4 cents a share, on sales of $95.9 million, up from $51.1 million a year ago. After adjusting for stock-based compensation and other effects, the company reported profit of $695,000, less than a penny a share. Analysts on average expected adjusted losses of 14 cents a share on sales of $84.7 million, according to FactSet. The company also said it expects to surpass $100 million in quarterly revenue in the fourth quarter, easily surpassing analysts' average estimate of $92.3 million, and adjusted losses of 11 cents to 12 cents for the full year on revenue of at least $350 million. Analysts had been projecting full-year adjusted losses of 30 cents a share on sales of $330.1 million, according to FactSet. After closing with a 2.5% gain at $34.40 Tuesday, shares popped to around $39 in the extended session following release of the results.
16 hours ago
U.S. stock markets finished with lackluster gains on Tuesday but enough to push markets to levels at or near records. President Donald Trump said the U.S. and China are close to completing "phase one" of their trade deal, but didn't offer any fresh details. The Dow Jones Industrial Average finished the session virtually unchanged at around 27,691, narrowly missing its 10th record close of 2019. Meanwhile, the Nasdaq Composite Index closed up 0.3% to end at 8,486.09, while S&P 500 index finished with a lackluster gain of 0.2% to 3,091, also missing a record finish. All closing levels for benchmarks are on a preliminary level. Meanwhile, in corporate news, Dean Foods Co. voluntarily filed for chapter 11 bankruptcy protection on Tuesday, with the dairy company saying it was working toward an "orderly" sale of the company. Trade in the stock was halted, but had fallen 79% year-to-date. Separately, shares of Tyson Foods Inc. stock rose 7.4% Tuesday, even after the meat producer reported fourth-quarter earnings and sales that missed estimates.
17 hours ago
Former HBO Chief Executive Richard Plepler is closing in on an exclusive production deal with Apple Inc.'s new streaming service. Plepler's company, RLP & Co., would create original content for Apple TV+ under a deal expected to be finalized in a few weeks, according to a Wall Street Journal report. As CEO of HBO, Plepler oversaw development of such highly-regarded content as "Game of Thrones" and "Veep." Apple, whose first few streaming productions have been met with mediocre reviews since their debut Nov. 1, is locked in a streaming war with Walt Disney Co.'s Disney+, which started Tuesday; market leader Netflix Inc. , Amazon.com Inc.; and others. Former Sony Corp. executive Kim Rozenfeld, who was head of current scripted programming and documentary and unscripted content at Apple TV+, is leaving amid a restructuring at the streaming platform.
18 hours ago
Albertsons Companies said Tuesday that it plans to phase out the Plated subscription meal service at the end of November. In its place, Albertsons will beef up its in-house culinary brand Own Brands, which will manage the expansion of the Plated brand into a home meal solution. The company will expand the Plated brand with new products in 2020. Albertsons tested meal-kit performance in its Northern California Safeway stores and found that those who purchased Plated products were more likely to have families and purchase larger baskets. Kroger Co. announced at its recent investor meeting that it would also be expanding its Home Chef meal-kit brand, which it acquired in 2018. Blue Apron Holdings Inc. stock was down 4.2% in Tuesday trading after the latest news from Albertsons. Blue Apron reported wider-than-expected losses and a revenue miss in its most recent earnings announcement. Blue Apron stock has lost 61.6% of its value over the past year while the S&P 500 index is up 13.4% for the period.
19 hours ago
Shares of Rockwell Automation Corp. soared 12% toward a 22-mnoth high in afternoon trading Tuesday, putting them on track for the biggest one-day gain in over 10 years, after the industrial automation and information services company reported better-than-expected fiscal fourth-quarter earnings and provided an upbeat outlook. The upbeat outlook comes in the face of what Chief Executive Blake Moret said on the post-earnings conference call with analysts was uncertainty created by global trade tensions and a deceleration in industrial production. Chief Financial Officer Patrick Goris said on the call that the company was able to "neutralize" the impact of tariffs through supply chain actions, including negotiations with vendors and targeted price increases. The stock was headed for the biggest one-day gain since it rose 13.7% on April 8, 2009, and was on track for the highest close since Jan. 26, 2018. It has run up 33.3% year to date, while the SPDR Industrial Select Sector ETF has surged 27.4% and the S&P 500 has gained 23.5%.
19 hours ago
President Donald Trump said Tuesday a U.S.-China trade deal "could happen soon," describing a phase-one agreement as "close" in a speech to the Economic Club of New York. Trump said Beijing was "dying to make a deal" as he made the highly anticipated speech in Manhattan. But the president gave no details on scaling back tariffs or setting a meeting to sign a deal with Chinese President Xi Jinping. The Dow Jones Industrial Average was up about 40 points as Trump spoke, while the S&P 500 rose 7 points and the Nasdaq Composite gained 37 points.
21 hours ago
Shares of Walt Disney Co. surged 1.7% in midday trading, to pace the Dow Jones Industrial Average's gainers, despite reports of some glitches in the media and entertainment giant's newly launched Disney+ streaming service. Bank of America Merrill Lynch analyst Jessica Reif Ehrlich reiterated her buy rating and $168 stock price target, which is 21% above current levels. In a note titled "Going in big and hot: The Disney+ launch in perspective," Ehrlich said the Disney+ launch makes her "incrementally more bullish on [Disney's] monetization prospects beyond the legacy Pay TV model." Ehrlich raised her Disney+ subscriber forecast to 90+ million by fiscal 2024 from 60 million. Disney's stock's price gain of $2.38 was adding 16 points to the Dow's price, which was up 47 points. Meanwhile, shares of streaming rivals Netflix Inc. slipped 0.6% and Apple Inc. eased less than 0.1%.
22 hours ago
Shares of Kadmon Holdings are up about 10% after the New York-based biopharmaceutical company said its treatment for certain patients with chronic graft-versus-host disease met the primary endpoint in a trial. Chronic graft-versus-host disease is a rare condition that can occur after a transplant. Kadmon said it expects to file the experimental therapy with the U.S. Food and Drug Administration next year. Its stock is up 58.65% year-to-date, while the S&P 500 has gained 23%.
22 hours ago
The Spain IBEX 35 index fell Tuesday after news the ruling Socialist Party has reached a pact with the left wing Unidos Podemos party. It comes two days after a general election left Prime Minister Pedro Sánchez's Socialists without enough votes to form a government. The new coalition will still need the support of regional and other leftist groups, which some say won't be easy. The coalition between these parties may make it tough for Spain to achieve its debt targets, said Javier Rivas, financial analyst and professor at EAE Business School in Madrid, in a note. "When the economy slows down, it will be necessary to take supportive fiscal measures. Although we still don't know the details of the pre-agreement between the PSOE and Podemos, in any case, it will make these decisions very complex and this will affect all areas."
22 hours ago
Hyatt Hotels Corp. announced Tuesday that it will eliminate small bottles of toiletries like shampoo and lotion, and reduce the number of single-use plastic water bottles by June 2021. Instead, the company will switch to large-format bathroom items, create additional water stations for guests with reusable water bottles and serve water in carafes and other containers at events. The company has also recently removed plastic straws and drink picks, making them available only by request. Marriott International Inc. and Carnival Corp. have made similar steps to reduce plastic use. Hyatt stock has rallied 13.7% for the year to date while the S&P 500 index is up 23.7% for the period.
22 hours ago
Shares of Kroger Co. rose 0.9% in morning trading, after Deutsche Bank analyst Paul Trussell backed away from his bearish rating on the grocery chain, citing growing optimism about the company's digital offerings. The upgrade comes as Trussell said he's incrementally more positive on the food retail sector, as online grocery has slightly outpaced his original growth projections, and with industry data showing that "at home" is gaining share of consumer stomachs. "Additionally, we are upgrading Kroger from sell to hold as we increase our ID forecast to reflect digital initiatives gaining traction," albeit a few years delayed relative to rivals such as Walmart Inc. . Trussell raised his stock price target for Kroger to $27 from $22. The stock rose 16.3% over the past three months, but has still slipped 2.4% year to date, In comparison, Walmart shares have run up 28.1% this year and the S&P 500 has climbed 23.6%.
22 hours ago
Shares of Fortinet Inc. [ftnt], Palo Alto Networks Inc. [panw], and Verint Systems Inc. are trading higher in Tuesday's session after Goldman Sachs analyst Brian Essex initiated coverage of the cybersecurity names with buy ratings. He began coverage of Check Point Software Inc. , FireEye Inc. , and Zscaler Inc. at hold and established a sell rating on shares of SecureWorks Corp. . "Within our coverage universe, we prefer stocks of companies with favorable exposure to next-generation security, an ability to take share in key markets, a demonstrated ability to execute, and strong fundamentals with cash flow," Essex wrote. "Although high growth software stocks have pulled back over the past few months, we believe the market will continue to reward high-growth share gainers in the market with a premium to peers." The initiations come as the First Trust NASDAQ Cybersecurity ETF has risen 27% so far in 2019. The S&P 500 is up 23% in that time.
22 hours ago
Verso Corp. shares soared 20% Tuesday, after the paper and packaging company said it is selling its Androscoggin mill, located in Jay, Maine, and its Stevens Point mill, located in Stevens Point, Wisconsin, to Pixelle Specialty Solutions LLC for $400 million. The deal, which must be approved by shareholders at a special meeting, is expected to close in the first quarter of 2020, the company said in a statement. The company is expecting to net cash proceeds of $336 million and will return most of that to its shareholders via a stock buyback, dividend or modified Dutch tender offer. The company also said it has named Adam St. John its chief executive officer, replacing interim CEO Les Lederer. St. John was senior vice president of manufacturing for all Verso mills. Shares have fallen 20% in 2019, while the S&P 500 has gained 23%.
22 hours ago
Shares of Amarin Corp. rose about 20% on Nasdaq-leading volume after a Food and Drug Administration committee released documents saying that the company' prescription fish-oil pill Vascepa has a "favorable benefit/risk profile" for a cardiovascular indication. The FDA's Endocrinologic and Metabolic Drugs Advisory Committee is expected to meet Thursday to discuss the company's application for the new indication. Amarin's net product revenue rose 104% to $112.3 million in the third quarter of 2019, up from $55 million in the like-period a year ago. That increase was driven by higher sales of Vascepa, Amarin's only FDA-approved drug. The company also said last week that it plans to double the size of its sales force to 800 from 400 in preparation of a potential FDA approval for the new indication. The FDA action date for approval is Dec. 28. Shares of Amarin are up 41.51% year-to-date, while the S&P 500 has risen 23%.
22 hours ago
The Dow Jones Transportation Average slumped 12 points, or 0.1%, in morning trading Tuesday, to buck the gains in the broader market indexes, with the shares of East-coast based railroad operators CSX Corp. and Norfolk Southern Corp. the biggest drags. The Dow Jones Industrial Average rose 39 points, or 0.1%. CSX's stock fell 1.3%, with the 98-cent price decline cutting the Dow transports' price by about 6 points; Norfolk's stock fell 0.5%, and the 95-cent price decline also shaved about 6 points of the Dow transports' price. CSX was downgraded by Deutsche Bank to hold from buy, and the stock price target was lowered to $74 from $82, citing a particular concern over lower coal shipments. In the note, analyst Amit Mehrotra wrote: "Importantly, this downgrade should not be extrapolated more broadly to our U.S. Transportation coverage universe, but rather specifically to Eastern rails (CSX and NSC), which have disproportionate exposure to export coal markets."
23 hours ago
Overstock.com Inc. said Tuesday the Securities and Exchange Commission subpoenaed the company in October requesting documents relating to its plan to offer a digital dividend. In a filing with the SEC, the e-commerce company said it also received requests regarding its communications with former Chief Executive Patrick Byrne, who resigned dramatically in August amid claims of involvement in political conspiracies. The SEC has also requested the 10b-5-1 plans of officers and directors that were in effect from Jan. 1, 2018 to Oct. 7, 2019. The company said it is cooperating with the regulator and has incurred "significant legal fees and other expenses" in connection with the probe. Shares were down 9% in early trade and have lost 37% in 2019, while the S&P 500 has gained 23%.
23 hours ago
U.S. stocks edged higher at the opening bell on Tuesday ahead of a speech by President Donald Trump that is expected to provide further insights on progress toward a partial U.S.-China trade deal. The S&P 500 was up 0.1% to 3,091. The Dow Jones Industrial Average advanced 6 points, or less than 0.1%, to around 27,698. The Nasdaq Composite rose 0.2% to 8,479. Reuters reported that Trump is also expected to put off for another six months a decision on whether to place tariffs of up to 25% on European auto imports. In company news, Dean Foods shares were in focus after the dairy manufacturer declared bankruptcy.
23 hours ago
Shares of Box Inc. are off 1.8% in premarket trading Tuesday after JMP Securities analyst Erik Suppiger downgraded the cloud-storage stock to market perform from market outperform. He is worried that Box's October quarter was "challenging" and will show a slowdown in the company's business pipeline. "While we believe Box's goal of delivering margin expansion is a prudent objective, we think the changes could be disruptive in the near term and that they create execution risk at a time when the company is undergoing a significant product transition," he wrote. Box shares have risen 22% over the past three months, though they're down 1.9% over a one-month period. The S&P 500 has gained 7.1% over three months and 3.9% over the past month.