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Pfizer Reports, Apple’s Earnings; Fed Meeting to Start, Sears Considers Lands’ End Spinoff

Dan Berman
Hot Stock Minute
Pfizer Reports, Apple’s Earnings; Fed Meeting to Start, Sears Considers Lands’ End Spinoff

Dow component Pfizer (PFE) is among the companies reporting earnings this morning. The drug-maker beat on the bottom line reporting adjusted earnings of 58-cents a share. Sales however were a slim miss, and the company is lowering its outlook for the year citing competition from generic drugs. Health insurer Aetna (AET) has also reported. Here's something rare: a miss on earnings, but a beat on revenues which topped $13-billion. Meanwhile, JetBlue (JBLU) missed on both the top and bottom lines with earnings a penny short of expectations. The company says it is now re-thinking routes to maximize profits.

Apple (AAPL) came out with a beat after yesterday's closing bell. The company made $8.26 a share when estimates were for $7.96. Sales were also above expectations at $37.5-billion. Still, traders didn't seem to like the numbers much. Yahoo Finance Editor-in-Chief Aaron Task has more in the video above.

A developing story: Sears (SHLD) is thinking about splitting itself in three.The company says it may spin Lands' End into a different company. It is also considering options for its Sears Auto Centers. As of now, Sears says it would not sell Lands' End to another party. This may surprise you, but Sears stock is up 34% so far this year.

Soon you may have a new way to bring the movies home. Imax will unveil a new home theater system today. The Canada-based company will manufacture the equipment in China-- one of the markets where it's expected to sell well. The price for the set-up will be $250,000. Imax already makes a home heater system, but that one runs $2-million.


LinkedIn (LNKD) reports after the closing bell.The social network is expected to post earnings of 32-cents a share, up a dime from a year ago on revenue that's climbed more than 50% to $385-million. LinkedIn faces the same challenges as Facebook (FB), namely a shift to mobile. But it has to create an interface that serves not only to members, but also recruiters. Shares of LinkedIn are up 114% year-to-date. That's even better than Facebook, which is up 86% since the start of 2013. By the way Facebook reports tomorrow.

Two gamemakers report after the closing bell: Electronic Arts (EA) and Take Two Interactive (TTWO). Look at the earnings estimates and you see two very different stories. EA is expected to report earnings of 12-cents a share, down 20% from last year on revenue that has dropped below $1-billion. Meanwhile, Take Two is expected to see its revenues approach $1-billion on growth of more than 200%. Earnings are expected to balloon to $1.64 from 11-cents last year. You probably know the reason for the jump: Grand Theft Auto Five which accounted for more than half of all video game sales in September. Nevertheless, shareholders of Electronic Arts are the winners here, with that stock up 70% so far this year. Take Two has risen a mere 51%.

Nutrisystem (NTRI) reported after yesterday's closing bell and then jumped more than 12%. The diet company beat estimates with earnings of 15-cents a share on $85-million in sales. Shares were already up 93% this year. The climb puts the stock at a new multi-year high. By the way Nutrisystem competitor Herbalife (HLF) also reported a beat after yesterday's bell with earnings of $1.41 a share. That stock has also been moving higher.

Finally Martha Stewart Living Omnimedia (MSO) reports earnings today. Yesterday the company named Daniel Dienst as its new CEO. To quote the Wall Street Journal, he knows melting not baking. That's because he comes from the metal industry. Getting Stewart's house in order will be quite a job. The company has lost money in nine of the last ten years. And it's recently been in that battle between Macy's and J.C.Penney for Stewart's branded merchandise. As for today's report, look for losses of 5-cents a share, better than last year when they were 10-cents a share. But on revenue that's dropped to $40-milion.