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CVS Caremark Reports; Tesla Charges Higher Ahead of Earnings; Twitter IPO Changes

Dan Berman
Hot Stock Minute
CVS Caremark Reports; Tesla Charges Higher Ahead of Earnings; Twitter IPO Changes

CVS Caremark (CVS) is out this morning with a healthy earnings beat. The drug store giant made $1.05 a share, 3-cents better than expected. Revenues also topped estimates, reaching almost $32-billion dollars. Meanwhile, AOL (AOL) is out with a big earnings miss. Revenues actually topped estimates, but profits plunged to just 2-cents a share because of restructuring charges for the company's Patch news service. And Michael Kors (KORS) is still in fashion with an earnings beat. 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.

Tesla (TSLA) reports after the closing bell. And that's put the stock on another charge higher. Right now the shares are up more than 2% in early trading. They rose more just over 8% yesterday, giving the stock a 395-% gain so far in 2013. What should investors be watching for when the company comes out with its report this afternoon? Yahoo Finance Senior Columnist Mike Santoli has more in the video above.

The chatter on Twitter is that the bird may be flying too high. The company has raised the price range for its IPO. It's now $23 to $25 up from $17 to $20. That means the company could raise $2-billion in the offering and have a market cap of $13.9-billion. At the top of the range, shares are priced at about 26 times Twitter's revenues over the past four quarters. Keep in mind, Twitter has never been profitable. And it faces challenges, particularly abroad where it generates fewer ad dollars. Yahoo Finance Technology Reporter Aaron Pressman has more in the video above.

There are a number of other stories to mention briefly: Hedge fund SAC Capital has in fact agreed to plead guilty to insider trading and will pay $1.8-billion in penalties; The Wall Street Journal reports that settlement talks between JPMorgan (JPM) and the Feds are heating up again; Morgan Stanley (MS) says it expects a lawsuit from AIG (AIG) over mortgage backed securities which the firm sold ahead of the financial crisis; and Lael Brainard is resigning from her post as under-secretary at the Treasury Department in what could signal an upcoming nomination to the Federal Reserve board.


21st Century Fox (FOXA) reports after the closing bell. The company is expected to post profits of 35-cents a share down from 43-cents a year ago. Revenue is also expected to drop, but keep in mind this is because the company formerly known as Newscorp, spun off part of its business in May. Company founder and CEO Rupert Murdoch was re-elected as chairman just two weeks ago despite the protests from some shareholders. They worry the 82-year old wields too much power. 21st Century Fox shares are up 45% year-to-date.

BroadSoft (BSFT) has been down 18% 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-mllion and the company lowered its outlook. Even before this drop, Broadsoft's shares were down 10% year-to-date.

Filtration company Polypore (PPO) is also plunging double-digits 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. This morning's losses add to an 8% drop in share prices during 2013.

Open Table (OPEN) reports after today's close. The online reservation service has posted increasing profits for the last three quarters. And sales have risen in the last two periods. Shares of Open Table are up 40% in 2013. They're up 60% over the last year.