Stocks moved lower today as traders brushed aside the day's biggest economic report. The Institute for Supply Management's non-manufacturing index rose to 55.4 during October. That was up a full point from September and beat the consensus figure of 54.5. Meanwhile, the Wall Street chatter continues ahead of Thursday's Twitter IPO. The microblogging site is expected to be the biggest internet IPO since Facebook in May of 2012.
CVS Caremark (CVS) moved higher today on an earnings beat and increased outlook. The drug store giant made $1.05 a share, 3-cents better than expected. Revenues also topped estimates, rising 5.8% to $31.97-billion when expectations were for $31.52-billion. The company says it has been successful in its expansion efforts. There has also been an increase in prescriptions.
AOL (AOL) shot up more than 8% today despite an earnings miss. Profits plunged to just 2-cents a share because of restructuring charges for the company's Patch news service. Expectations had been for earnings of 35-cents. The figure in the period a year ago was 22-cents. Key here were revenues which actually topped estimates at $561.3-million versus $548.81-million. That's a 6% year-over-year gain.
Orbitz WorldWide (OWW) plunged 19% on an earnings miss. The travel agency made 11-cents a share, which was 2-cents short of estimates. Sales were actually up 11% to $220.9-million. They also slightly topped estimates which had been for $220.69-million. The problem lies in expenses that rose almost 12% due to increased marketing costs and incentive-based pay.
Michael Kors (KORS) is clearly still in fashion. The stock rose more than 5% on its earnings. The company made 71-cents a share on $740-million in sales when expectations were for 68-cents a share on $725.91-million in sales. The company also raised its outlook citing continued growth momentum.
BroadSoft (BSFT) was down almost 25% on its quarterly report. The software maker had adjusted earnings of 29-cents a share missing estimates by a penny. Revenues were also below expectations at $43-million when estimates were for $45-million. The company also lowered its outlook. Even before this drop, Broadsoft's shares were down 10% year-to-date.
Filtration company Polypore (PPO) plunged nearly 16% on its earnings which came out after yesterday's closing bell. Polypore made 24-cents a share for the period, 7-cents below expectations. As for revenues, they were roughly 10% below forecasts at $152-million. Today's losses added to an 8% drop in share prices during 2013.
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