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BUZZ-U.S. Stocks on the Move-Chipotle, Herbalife, HealthStream
July 22, 2014 / 4:00 PM / 3 years ago

BUZZ-U.S. Stocks on the Move-Chipotle, Herbalife, HealthStream

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U.S. stocks rose on Tuesday as inflation data was seen keeping the Federal Reserve in an equities-friendly tone, while hopes rose for an easing of tensions in Ukraine. The Dow Jones industrial average was up 0.42 percent at 17,122.56, the S&P 500 was up 0.56 percent at 1,984.77 and the Nasdaq Composite was up 0.84 percent at 4,461.91.

** CHIPOTLE MEXICAN GRILL INC, $665.45, +12.80 pct

One of the top-performing U.S. restaurant operators on Monday reported a nearly 26 percent jump in quarterly profit after traffic to the burrito chain surged despite a menu price increase.

Deutsche Bank, UBS, Barclays and nine other brokerages raised their price targets on stock.

The stock was the top percentage gainer in morning trading on the new York Stock Exchange on Tuesday.

** HERBALIFE LTD, $57.98, +7.33 pct

Herbalife shares rallied on Tuesday in heavy volume, although they only recovered about half of Monday’s steep decline. The move came as Bill Ackman, chief executive of Pershing Square Capital Management and a vocal short against the company, gave a presentation that described it as a pyramid scheme.

** WOODWARD INC, $55.35, +14.98 pct

The aerospace materials and parts supplier reported better-than-expected profit and revenue on Monday.

Brokerage Stifel Nicolaus raised its price target on the company’s stock to $60 from $55.

** MCDONALD‘S CORP, $95.963, -1.63 pct

The fast-food chain reported a lower-than-expected quarterly profit as comparable sales in its struggling U.S. business fell for the third straight quarter and sales in Europe declined for the first time in four quarters.

** HEALTHSTREAM INC, $26.55, +19.33 pct

The company, which provides Internet-based learning and research software to healthcare providers, reported second-quarter revenue of $42.5 million, higher than the analysts’ average estimate of $41 million.

HealthStream also narrowed its full-year revenue growth forecast to 26 percent-29 percent from 25 percent-29 percent.

** ARM HOLDINGS PLC, $45.08, +5.90 pct

The seller of blueprints for chip designs posted a 9 percent rise in second-quarter profit as licensing of its processor technology compensated for a slowdown in high-end smartphone sales that decimated growth in royalties.

** COCA-COLA CO, $41.16, -2.92 pct

The maker of Sprite, Minute Maid and Powerade reported lower-than-expected quarterly revenue as sales in North America, its biggest market, failed to show growth for the second straight quarter.

** HARLEY-DAVIDSON INC, $63.14, -5.87 pct

The motorcycle maker cut its full-year forecast for motorcycle shipments on Tuesday, citing weaker-than-expected U.S. retail sales and a delay in getting its newest bike into dealer showrooms.

** NEW ORIENTAL EDUCATION & TECH GROUP INC, $21.24, -12.23 pct

The Chinese for-profit education provider said it expected first-quarter revenue of $412.0 million-$427.5 million, far below the analysts’ average estimate of $463.3 million. But the company reported fourth-quarter revenue above the consensus estimate.

** GALENA BIOPHARMA INC, $2.9099, +4.30 pct

The drug developer was granted U.S. rights for MonoSol Rx’s oral soluble film used to prevent nausea and vomiting induced by chemotherapy, radiotherapy or after surgery.

The agreement includes undisclosed upfront payment from Galena to the New Jersey-based company, as well as double-digit royalty payments from sales of the therapy, Zuplenz.

** POLARIS INDUSTRIES INC, $145.95, +9.59 pct

The snowmobile maker raised its full-year forecast after off-road vehicle sales increased 13 percent in the second quarter.

Polaris, one of the top percentage gainers on the NYSE, is not facing headwinds affecting rival Harley-Davidson Inc , which cut its full-year forecast for motorcycle shipments

** AMERICAN AXLE & MANUFACTURING HOLDINGS INC, $19.7, +2.87 pct

JPMorgan raised its rating on the auto parts maker’s stock to “neutral” from “underweight”, citing strong North American auto sales. Seven of 10 brokerages covering the stock have a “buy” or higher rating, one rates it “hold” and two have “sell” ratings. The analysts’ median price target on the stock is $22, unchanged for the past 90 days.

** CREDIT SUISSE GROUP AG, $28.62, -1.51 pct

The Swiss bank will quit commodities trading after chalking up its biggest loss since the financial crisis in 2008, the result of a 1.6 billion Swiss franc ($1.78 billion) fine from U.S. authorities for helping its clients evade taxes. ($1 = 0.9004 Swiss Francs)

** LEXMARK INTERNATIONAL INC, $47.94, +2.13 pct

The printer maker’s second-quarter profit and revenue beat the analysts’ average estimate.

Lexmark said it now expects full-year revenue to remain unchanged or fall up to 2 percent. It had earlier forecast a 2-4 percent decline. The company raised its full-year adjusted profit forecast to $3.95-$4.15 per share from $3.80-$4.00.

** CYMABAY THERAPEUTICS INC, $5.55, -7.04 pct

The drug developer said it would offer 4 million shares at $5.50 each, representing 40 percent of the company’s outstanding shares as of April 30.

The offer price represents discount of about 8 percent to the stock’s Monday closing.

** VALSPAR CORP, $78.97, +3.66 pct

Goldman Sachs said it expected the coating and paint maker to benefit from a recovery in the U.S. housing market and added it to ‘Americas Conviction List’. The brokerage also raised its rating on the stock to “buy” from “neutral.” Of the 15 brokerages covering Valspar, two have a “strong buy” rating, 5 have a “buy”, 7 have a “hold” and 1 a “sell.”

** APACHE CORP, $103.55, +5.06 pct

Activist investor Jana Partners LLC has built a stake worth more than $1 billion in Apache, the Wall Street Journal reported. (on.wsj.com/UkTOUB)

Jana Partners said it wants the company to drill exclusively on American soil and sell its international holdings. The investor wants Apache to free up cash flow by exiting two projects in Canada and Australia that aim to export natural gas.

** COMBIMATRIX CORP, $2.4201, +7.56 pct

The molecular diagnostics company signed an agreement to join a network of directly managed preferred provider organizations maintained by Atlanta-based Stratose.

Patients pay less for care when they use the services of doctors, hospitals and pharmacies in preferred provider organization networks.

** CENTENE CORP, $81.38, +7.67 pct

The health insurer reported a 24 percent jump in quarterly profit, beating market estimates for the sixth straight quarter, as the company’s premium and services revenue surged after it expanded in Florida, Ohio and California.

** KIMBERLY CLARK CORP, $109.7, -2.32 pct

The personal care and hygiene products maker lowered the high end of its full-year adjusted earnings forecast range. The company cut its forecast range to $6.00-$6.15 per share from $6.00-$6.20, citing a “difficult environment.”

The company’s quarterly profit missed the analysts’ average estimate by 1 cent, hurt by higher input costs and foreign currency exchange rates.

** ROWAN COMPANIES PLC, $31.5, +1.51 pct

U.S.-based investment firm Blue Harbor Group LP reported a 6.5 percent stake in the offshore drilling company.

** COMCAST CORP, $54.755, +1.74 pct

The largest U.S. cable operator reported a better-than-expected rise in quarterly profit, helped by the highest subscriber additions in its high-speed internet business for six years and improved profitability at its NBC Universal unit.

** PEABODY ENERGY CORP, $15.59, +1.76 pct

The coal miner reported a 2 percent rise in quarterly revenue, helped by an increase in shipments and prices at its mining operations in western U.S. states such as Wyoming, Colorado and Montana.

** DEL FRIJOL‘S RESTAURANT GROUP INC, $21.61, -14.35 pct

The company reported second-quarter revenue and profit below the analysts’ average expectation.

Del Frisco’s cut its 2014 profit forecast, citing delays in opening several restaurants and also lowered sales projections for Chicago Del Frisco’s Double Eagle, based on current sales, and for Palm Beach Del Frisco’s Grille, which has not yet received clearance to serve lunch, brunch or make use of patio seating.

** TRAVELERS COMPANIES INC, $91.44, -4.01 pct

The property and casualty insurer’s quarterly earnings fell short of analysts’ estimates as hail and wind storms in the United States increased catastrophe losses.

** OMNICOM GROUP INC, $71.46, +0.18 pct

The No.1 U.S. advertising company, said it was sticking with its annual organic revenue growth target, showing little effect from its aborted $35 billion merger with France’s Publicis Groupe.

** CROCS INC, $16.5, +11.19 pct

The shoemaker said it would cut 183 jobs, close 75-100 retail stores and reduce direct investment in smaller markets to cut costs. The company also said it would explore strategic alternatives for non-core brands and eliminate non-core product development

Crocs also posted better-than-expected second-quarter profit and sales, and forecast that 2015 revenue would be hurt by store closures before revenue growth resumes in 2016 and beyond.

** VERIZON COMMUNICATIONS INC, $50.82, +0.24 pct

The largest U.S. wireless telecom company reported better-than-expected quarterly revenue and profit due to a jump in postpaid wireless subscriber additions.

** FUELCELL ENERGY INC, $2.51, +13.57 pct

The fuel cell power plant maker said its affiliate won 5 million euros ($6.73 million) from the German government to support a three-year research and development project with JV partner Fraunhofer IKTS.

The project aims to improve the company’s power plants’ technology by increasing power density and operating life of fuel cells, leading to lower costs. ($1 = 0.7427 Euros)

** CROWN HOLDINGS INC, $48.51, -5.75 pct

The metal beverage and food can maker’s net income fell to 76 cents per share for the second quarter ended June 30 from 93 cents per share a year earlier.

The company’s cost rose to $1.96 billion from $1.82 billion, while restructuring expenses jumped to $31 million from $4 million.

** HELIX ENERGY SOLUTIONS, $26.32, +7.74 pct

The offshore drilling company’s second-quarter net income more than doubled to 55 cents per share, helped by 100 percent utilization of all three North Sea vessels.

The second quarter was the first full quarter when Helix’s 534 vessel was put to full use.

** CIT GROUP INC, $49.17, +11.88 pct

The U.S. small-business lender said it would buy California lender OneWest Bank NA for $3.4 billion in cash and stock, its second deal in two months to boost its middle-market lending.

** ULTRA CLEAN HOLDINGS INC, $8.87, -3.17 pct

The chip equipment maker’s second-quarter profit and sales missed the analysts’ average estimate as demand slowed.

Roth Capital raised its rating on the company’s stock to “buy”. All five analysts covering the stock have a “buy” or higher rating, according to Thomson Reuters data.

** INGERSOLL-RAND PLC, $64.14, +3.70 pct

The maker of Trane air conditioners and Thermo King refrigeration units raised its current-year profit forecast as it expects the construction and industrial markets to grow.

** NETFLIX INC, $429.8435, -4.89 pct

The video-streaming company planned expansion in Europe will set it up for growth, but increase content and marketing expenses in the near term, analysts said.

** STEEL DYNAMICS INC, $21.69, +4.53 pct

The steelmaker’s second-quarter sales rose 14 percent to $2.1 billion, while profit rose 60 percent.

Cowen and Co and UBS raised their price targets on the company’s stock.

** LOCKHEED MARTIN CORP, $166.59, +2.22 pct

The Pentagon’s largest defense supplier reported a 3.5 percent rise in quarterly profit as higher interest rates lowered its pension liability.

** SYNTA PHARMACEUTICALS CORP, $4.234, +4.03 pct

The drugmaker said its experimental cancer drug ganetespib advanced into a late-stage extension trial. The combination of ganetespib and chemotherapy will be studied in elderly patients with acute myeloid leukemia, a type of blood cancer, or high-risk myelodysplastic syndrome, a blood disorder.

** CELGENE CORP, $86.5605, +1.47 pct

An anti-cancer drug made by the U.S. biotech firm Celgene can re-activate hidden HIV in patients so that it can be detected, bringing researchers closer to being able to treat it, Danish scientists said on Tuesday.

** AMERICA MOVIL SAB DE CV, $23.75, +2.28 pct

Carlos Slim’s America Movil, Latin America’s biggest telecoms company, said on Monday that new regulation in its core Mexico market was beginning to weigh on its performance. A lower exchange rate and financing costs helped the company increase its profit by 32.7 percent to 18.83 billion pesos ($1.45 billion) in the second quarter. (Reporting By Shubhankar Chakravorty in Bangalore; Editing by Simon Jennings)

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