L Brands Loses Ground on Weak Earnings Forecast

GuruFocus.com
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- By Omar Venerio

Wall Street was higher in premarket trading on Thursday, with the Dow Jones Industrial Average breaking 25,000 for the first time.

Shares of L Brands Inc. (LB), however, fell more than 12% after the company reported sales increased 3% in December to $2.516 billion, but expects to report fourth-quarter earnings per share of $2, which is lower than estimates of $2.05 and the previous guidance range of $1.95 to $2.10. Further, comparable sales, which increased 1%, were short of the consensus estimate. For January, it expects comparable sales to increase at a low single-digit rate.


Gainers

  • Advanced Micro Devices Inc. (AMD)

  • CVS Health Corp. (CVS)

  • Micron Technology Inc. (MU)

  • Advance Auto Parts Inc. (AAP)

  • DXC Technology Co. (DXC)



Losers

  • Walgreens Boots Alliance Inc. (WBA)

  • Macy"s Inc. (NYSE:M)

  • Foot Locker Inc. (FL)

  • Kroger Co. (KR)

  • CBS Corp. (CBS)



Global markets

The main European stock markets traded higher. The U.K."s FTSE 100 rose 0.32%, France"s CAC 40 climbed 1.55%, Germany"s Dax jumped 1.46% and Spain"s Ibex 35 gained 1.96%.

In Asia, Japan"s Nikkei 225 gained 3.26%, India"s BSE Sensex rose 0.52%, Hong Kong"s Hang Seng inched up 0.57% and China?s SSE Composite swelled 0.49%.

Disclosure: The author holds no positions in any stocks mentioned.

This article first appeared on GuruFocus.


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