Stocks closed off their lows but extended their losing streak to three sessions. Today's move lower came amid renewed fears of a Fed taper. Two more Fed presidents made remarks this afternoon, which worried investors about the possibility of a coming pullback in the central bank's bond-buying program.
Ralph Lauren (RL) fell 8% on its earnings, which were down 6% for the quarter. The company actually beat profit estimates by a penny posting $1.94 for the period. But it came in slightly short on revenue which was $1.61 billion versus expectations of $1.65 billion. The luxury retailer says it faced a pair of problems: currency woes and sluggish sales at its stores. Sales at company-owned stores were up 3%, reflecting the addition of new locations and strong growth in e-commerce.
Time Warner (TWX) and AOL (AOL) both reported earnings today. Time Warner made 81-cents a share, a nickel better than expectations. Revenue also beat at $7.44 billion. CNN and TBS helped with an 11% increase in ad revenue, despite predicted declines in ratings. As for AOL, it posted profits of 35-cents a share, 3-cents above the consensus. Revenue also edged past estimates at $541.3 million. The company had higher-than-expected sales of display and search ads.
Disney (DIS) dipped over 1.5% on its earnings which were released after yesterday's closing bell. The company posted profits of $1.03 a share beating estimates of $1.01. However, revenue was slightly below the consensus at $11.58 billion. Little surprise: the big flop known as the Lone Ranger weighed on the entire corporation. In fact the company could take up to a $190 million loss for the movie. But those losses were counterbalanced by increased revenue from ESPN and the company's theme parks.
First Solar (FSLR) tumbled 13% following the release of a dismal earnings report yesterday afternoon. First Solar made 39-cents a share when estimates were for 56-cents. Revenue was also sorely short, under $520 million when expectations were for close to $730 million. The company also lowered its full-year guidance on both earnings and revenues. Until now shares of First Solar had been up 46% in 2013. Even more impressive, they've been up 126% over the past year.
Zillow (Z) sank 7% after posting losses of 30-cents a share, more severe than the expectations which were for minus 11-cents. Though revenue beat expectations by about 5% at $46.9 million. Prior to today's drop, Zillow shares were up 220% so far this year.