Before the bell, take a look at the businesses that are in the news.
American Airlines – After the airline released unsatisfactory earnings projections for the third quarter, shares fell 6%. As the industry as a whole battles oversupply that has resulted in low tickets, American Airlines projects that unit revenue will decline by as much as 4.5%.
Honeywell After the industrial behemoth released projections that fell short of analyst expectations and overshadowed better-than-expected quarterly results, shares fell by about 5%.
Southwest Airlines — Despite a better-than-expected second-quarter results, the cheap airline’s shares dropped 5%. With $7.35 billion in revenue, Southwest posted adjusted earnings per share of 58 cents.
RTX: The defence and aerospace supplies manufacturer increased 3% after earnings for the second quarter exceeded forecasts. As per LSEG, RTX recorded $1.41 earnings per share, ex-items, against the analysts’ projected earnings of $1.30 per share. The business exceeded projections with its $19.79 billion in revenue.
Hasbro: The toy manufacturer had a more than 6% increase in shares after increasing its full-year guidance. Both second-quarter revenue and profitability exceeded expectations. LSEG reports that Hasbro’s earnings per share, ex-items, came in at $1.22 as opposed to the consensus estimate of 78 cents. $995 million in revenue also exceeded analysts’ $944 million projection.
Even though the biopharmaceutical giant AbbVie reported better-than-expected second-quarter results, its shares nevertheless dropped by almost 3%. LSEG reported that AbbVie earned $2.65 per share, ex-items, exceeding its projection of $2.57 per share. Estimates of $14.03 billion were surpassed by revenue of $14.46 billion.
Dow: After missing both top and bottom lines in the second quarter, the chemicals business saw a nearly 5% decline. With $10.92 billion in revenue, Dow reported earnings per share ex-items of 68 cents.
Global Business Equipment — Following the tech company’s better-than-expected quarterly earnings, shares increased by 3%. For the second quarter, the company recorded adjusted earnings per share of $2.43 on revenue of $15.77 billion. LSEG-surveyed analysts had called projected $15.62 billion in revenue and $2.20 per share in earnings.
Northrop Grumman: The defence company increased its projection and posted a strong second-quarter earnings report, which sent shares of the company soaring 3%. With $10.22 billion in revenue, Northrop Grumman reported earnings per share of $6.46. LSEG polled analysts who projected revenue of $10.02 billion and earnings per share of $5.93.
Keurig Dr. Pepper: The beverage company saw a gain of about 5% on the release of comparable quarterly earnings and a reaffirmation of its full-year projection. After deducting expenses, Keurig Dr. Pepper’s $3.92 billion in revenue generated 45 cents in earnings per share.
Nasdaq: Equities ticked up 2% after the financial services firm released results for the second quarter that marginally above predictions made by analysts. On $1.16 billion in revenue, Nasdaq earned 69 cents per share, excluding items. On $1.13 billion in revenue, analysts had projected profits per share of 64 cents.
KLA Corporation After revealing better-than-expected fiscal fourth-quarter earnings, the chipmaker saw a more than 2% increase in value. KLA revealed adjusted earnings of $6.60 per share, exceeding analysts’ projections of $6.15 per share.
ServiceNow — Premarket trading saw a 6% increase in the software stock after the company reported better-than-expected profitability in the face of growing demand for workflow automation. ServiceNow increased their forecast for the entire year as well, currently forecasting between $10.575 and $10.675 in subscription revenue billion and $10.585 billion, surpassing the projection of $10.565 billion made by analysts, as per LSEG.
Molina Healthcare: The managed care provider had a 10% increase. FactSet reports that Molina reiterated its full-year expectation for adjusted earnings of at least $23.50 per share, which is lower than the consensus estimate of $23.09 per share. Both the top and bottom lines of the second quarter’s earnings exceeded projections.
Align Technology—The company that makes the transparent aligners for Invisalign experienced a roughly 6% fall on the release of unsatisfactory forecast and quarterly revenue that fell short of analysts’ projections. For the second quarter, adjusted earnings came in at $2.41 per share, compared to analysts’ expectations, which LSEG polled, of $2.30 per share.
Lifesciences Edwards, Inc. After receiving lower-than-expected projections, shares fell more than 23%. Adjusted earnings for the second quarter came in at 70 cents a share, only a penny above Street estimates. Although analysts were expecting $1.62 billion, the company reports third-quarter revenue of between $1.56 billion and $1.64 billion.
Chipotle — The fast-casual chain’s stock increased by almost 2%. Chipotle exceeded revenue and earnings projections thanks to increased foot traffic at its restaurants. Price hikes that helped defray some of its costs contributed to the year-over-year increase in profits. Chipotle reported adjusted earnings of 34 for the quarter LSEG’s survey of analysts predicted 32 cents per share on $2.94 billion in revenue, compared to cents per share on $2.97 billion.
Ford Motor — Due to persistent warranty problems, the automaker’s second-quarter earnings fell short of analysts’ expectations, sending shares down 13%. Ford’s adjusted profits per share of 47 cents was much lower than the 68 cent consensus estimate. With $44.81 billion in revenue, the automotive industry did somewhat better than expected ($44.02 billion).
Viking Therapeutics After the drug developer said that it will forward its experimental treatment for obesity, VK2735, into a phase 3 clinical study, shares increased by more than 14%. After 13 weeks of treatment, the medication caused a 15% drop in body weight. Phase 2 of this medication’s oral form will start.
Source (CNBC)
