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CORRECTED: Eli Lilly & Co. says its migraine drug met primary endpoint in late-stage trial

Fri, 08/04/2017 - 07:50

Eli Lilly & Co. said early Friday that its migraine drug lasmiditan met its primary endpoint and a key secondary endpoint in a late-stage clinical trial. The company plans to submit for Food and Drug Administration approval in the second half of next year. A greater share of patients treated with the therapy were migraine pain-free two hours after the full dose relative to those on the placebo. Patients on the therapy also reported a statistically significantly larger percentage of freedom from their most bothersome symptom two hours after the first dose, relative to those on the placebo. Side effects reported by patients after taking the therapy most commonly included dizziness, tingling or numbness, sleepiness, fatigue, nausea and a lack of energy, the company said. Eli Lilly is one of several companies developing migraine drugs, including Amgen Inc. , Teva Pharmaceutical Industries Ltd. and Alder BioPharmaceuticals Inc. . Though many people think of migraines as headaches, the head pain and other symptoms can be severe and disabling, and treatment options are limited. Eli Lilly shares were not active in premarket trade. Shares have declined 1.3% over the last three months, compared with a 3.5% rise in the S&P 500 .

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ADP's stock surges after activist Bill Ackman seeks to take control

Fri, 08/04/2017 - 07:41

Shares of Automatic Data Processing Inc. rose 2.9% in premarket trade Friday, after the business consulting company disclosed that activist investor William Ackman's Pershing Square Capital Management is seeking to take control. ADP said Pershing, which owns 8% of the company's shares outstanding, is seeking to extend the deadline for nomination directors by up to 45 days, as Ackman would like to take five board seats. Ackman is also seeking a change of the chief executive officer. "The Board has unanimously determined that it is not in the best interests of ADP or its other shareholders to accede to Pershing Square's last-minute request for an extension," the company said in a statement. ADP said in the six years that Carlos Rodriquez has been CEO, ADP's total shareholder return (TSR) has been 202%, while the S&P 500's TSR has been 128% and Pershing's TSR has been 29%. Over the past year, ADP's stock has rallied 26.4% while the S&P 500 has gained 14%.

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Potbelly reports earnings miss, strategic review

Fri, 08/04/2017 - 07:29

Potbelly Corp. announced Friday, along with a second-quarter earnings miss, that it will undertake a strategic review of the business to enhance shareholder value. Shares fell 1.4% in premarket trading after the sandwich chain reported a loss of $138.0 million, or 1 cent per share, after net income of $3.4 million, or 13 cents per share, for the same period last year. Adjusted EPS was 11 cents, missing the 12-cent FactSet consensus. Revenue totaled $108.1 million, up from $105.0 million last year and below the $110.0 million FactSet consensus. Company-operated same-store sales fell 4% for the quarter. Potbelly expects 2017 a mid-single digit decline in company-operated same-store sales. Full-year EPS is expected to be 30 to 33 cents. The FactSet consensus is 37 cents. Potbelly shares are down 15.5% for the year to date while the S&P 500 index is up 10.4% for the period.

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Cooper Tire sales fall unexpected as industry 'turbulence' continues

Fri, 08/04/2017 - 07:17

Cooper Tire & Rubber Co. reported a second-quarter net profit that fell to $45.3 million, or 85 cents a share, from $70.7 million, or $1.27 a share, in the same period a year ago. The FactSet consensus for earnings per share was 74 cents. Revenue fell to $720.8 million from $740.3 million, while the FactSet consensus was for a rise to $770.7 million. Unit volume fell 0.5%, as declines in North America offset growth in international. "The tire industry continues to face turbulence in the U.S. market in the form of raw material cost variability, weak trends in retail sell-out of tires to consumers, elevated inventory in the channels and a fluid pricing and promotional landscape," said Chief Executive Brad Hughes. He said industry conditions are likely to persist into the third quarter. "Raw material costs are trending down at present, but may remain volatile, and we expect that uncertain consumer demand may contribute to continued high levels of promotional activity." The stock, which was still inactive in premarket trade, has lost 7.3% year to date, while the S&P 500 has gained 10.4%.

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Fluor shares fall on surprise quarterly loss, lowered outlook

Thu, 08/03/2017 - 17:56

Fluor Corp. shares fell in the extended session Thursday after the engineering and construction company reported an unexpected quarterly loss and cut its outlook for the year. Fluor shares fell 9.4% to $39.75 after hours. The company reported a second-quarter loss of $24 million, or 17 cents a share, compared to net income of $101.8 million, or 73 cents a share, in the year-ago period. Revenue declined to $4.72 billion from $4.86 billion in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 60 cents a share on revenue of $4.89 billion. For the year, Fluor lowered estimated earnings to a range of $1.40 to $1.70 a share, down from a range of $2.25 to $2.75 a share. Analysts had estimated $2.42 a share.

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Bed Bath & Beyond to cut in-store manager positions

Thu, 08/03/2017 - 17:45

Bed Bath & Beyond Inc. said late Thursday it has sped up a plan to "realign" its store management structure, which will result in the reduction of about 880 department and assistant store manager positions. "These actions accelerate a transition in store management roles that began more than a year ago through store hiring practices and attrition," simplifying the stores' management structure and focusing additional staffing needs in non-management roles, the company said in a statement. "There are no further reductions planned in connection with this realignment," and after the plan is in place in-store staffing levels are expected to remain the same as before or, in some cases, increase, it said. The financial impact of the organizational changes has not been included in the company's full-year modeling assumptions provided on April 5, Bed Bath & Beyond said. The company is scheduled to report its fiscal 2017 second-quarter results after the close on Sept. 19, and will provide then an update on its full-year guidance. Shares were flat in late trading after ending the regular session up 2.4%.

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Wingstop shares rally after results top Street estimates, dividend initiated

Thu, 08/03/2017 - 17:35

Wingstop Inc. shares rallied in the extended session Thursday after the chicken wing chain topped Wall Street estimates and said it would start paying a dividend. Wingstop shares rose 7% to $32.35 after hours. The company reported second-quarter net income of $5.3 million, or 18 cents a share, compared to $4.1 million, or 14 cents a share, in the year-ago period. Revenue rose to $24.7 million from $22.7 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 15 cents a share on revenue of $24.7 million. For the year, Wingstop estimates earnings growth of 23% to 25%, up from a previous forecast of 19% to 21% growth, for an outlook of about 71 cents to 73 cents a share. Analysts had forecast 70 cents a share. Separately, Wingstop said Michael Skipworth will become chief financial officer after having served in an interim role, and initiated a quarterly dividend of 7 cents a share to be paid Sept. 18 to shareholders of record as of Sept. 3.

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Microsoft joins Facebook and Alphabet in move to GAAP reporting

Thu, 08/03/2017 - 17:31

Microsoft Corp. announced on a conference call Thursday afternoon that it will move to all GAAP reporting in its new fiscal year, a move that fellow tech giants like Facebook Inc. and Alphabet Inc. have also made recently. Microsoft conducted the earnings call to go over the changes to its financial reporting that will result from new revenue-recognition rules, which Microsoft is adopting earlier than most companies. The Securities and Exchange Commission has been cracking down on companies' use of non-GAAP earnings, and tech companies appear to be moving away from those metrics, which typically strip out stock-based compensation and other effects to present healthier profit numbers. Microsoft also restated financial performance for the 2017 and 2016 fiscal years with the changes that the new revenue-recognition rules will bring in order for easier comparisons. Microsoft stock was unchanged in late trading, and has gained 16.1% so far this year, outperforming the 10.7% gain for the S&P 500 index.

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West Virginia's governor to switch from Democrat to Republican: reports

Thu, 08/03/2017 - 17:29

West Virginia Gov. Jim Justice will switch parties, from Democrat to Republican, according to multiple reports Thursday. The official announcement will come Thursday night at a rally with President Donald Trump in Huntington, W. Va., the Associated Press reported. Earlier in the day, Trump had teased a "very big announcement" at the rally. Justice, a bilionaire coal and real estate tycoon, won election as a conservative Democrat in November, but had previously registered at various times as both a Republican and an independent. Justice's move further tilts the advantage Republicans hold in statehouse across the nation, holding a 34-15 edge over Democrats.

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Western Union shares rise after company tops earnings view

Thu, 08/03/2017 - 17:14

Shares of Western Union Co. rose 5% late Thursday after the company reported second-quarter adjusted earnings above expectations and sales in line with forecasts. Western Union said it earned $166.5 million, or 35 cents a share, in the quarter, compared with $205.6 million, or 42 cents a share, in the year-ago period. Adjusted for one-time items, Western Union earned 50 cents a share, compared with 44 cents a share in the same period last year. Revenue was flat at $1.4 billion in the quarter. Analysts polled by FactSet had expected adjusted earnings of 45 cents a share on sales of $1.4 billion. Shares ended the regular session up 0.5%. The company also trimmed its full-year GAAP EPS outlook to a range of $1.46 to $1.56, from a previous guidance of between $1.48 a share and $1.60 a share, to account for legal matters.

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Activision Blizzard reports improved Q2 earnings, gives full-year guidance below expectations

Thu, 08/03/2017 - 16:54

Shares of video game developer Activision-Blizzard Inc. [s; ATVI] were down 1.5% after hours after the company gave full year guidance that was below Wall Street expectations. Activision reported net income of $243 million, or 32 cents per share for the second quarter, compared with $151 million, or 20 cents per share, during the same quarter a year ago. FactSet's consensus for per-share earnings was 30 cents. Activision said that redefined non-GAAP earnings were 55 cents per share, which it said included the net effect of revenue deferrals accounting treatment on certain online enabled products. Revenue for the quarter, which was impacted by the GAAP deferrals, was $1.63 billion, up from $1.57 billion. FactSet's revenue consensus was $1.23 billion. The company said it had 407 million monthly active users in the quarter. Activision said it expects revenue for the year to come in at $6.40 billion, below FactSet's consensus of $6.54 billion, and the company expects redefined non-GAAP per-share earnings to be $1.94, below FactSet's $2.02 consensus. Shares of Activision-Blizzard have gained more than 77% in the year to date, while the S&P 500 index is up more than 10%.

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GrubHub shares drop on second-quarter results after earnings report

Thu, 08/03/2017 - 16:52

Shares of GrubHub Inc. hit a record intraday high Thursday, but plunged 10% in after-hours trading after the food delivery and takeout company reported second quarter results. GrubHub reported adjusted earnings of 26 cents a share, compared with 23 cents a share in the year-earlier quarter. The FactSet consensus was for earnings per share of 26 cents. Revenue jumped 32% to $158.8 million, above the consensus of $158.3 million. GrubHub executives raised the lower-end of the full-year sales guidance to $642 million to $662 million from $632 million to $662 million. In a separate press release, GrubHub announced a partnership with Yelp Inc. that includes the acquisition of Yelp's food delivery unit Eat24. Grubhub shares have gained 28.3% year to date and hit an intraday high of $48.58 on Thursday. The S&P 500 has gained 10.4%.

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Callaway Golf shares up 4% on earnings beat, increased guidance

Thu, 08/03/2017 - 16:46

Callaway Golf Co. shares rose nearly 4% late Thursday after the company beat second-quarter expectations and increased its full-year guidance. Callaway said it earned $31 million, or 33 cents a share, in the quarter, compared with $34 million, or 36 cents a share, in the year-ago period. Revenue was up 24% to $305 million in the quarter, from $246 million a year ago. Analysts polled by FactSet had expected earnings of 28 cents a share on sales of $296 million. Callaway said it expects full-year 2017 net sales between $980 million and $995 million, compared to a prior guidance of between $960 million and $980 million. The company increased its full-year adjusted earnings guidance to between 40 cents and 45 cents a share, compared to prior guidance of a range of 31 cents to 37 cents. Shares ended the Thursday session down 1%.

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Arista Networks shares rally 14% as results, outlook beat Wall Street estimates

Thu, 08/03/2017 - 16:34

Arista Networks Inc. shares rallied in the extended session Thursday after the cloud-networking software company's quarterly results and outlook topped Wall Street estimates. Arista shares surged 14% to $165 after hours. The company reported second-quarter net income of $102.7 million, or $1.30 a share, compared to $38.9 million, or 53 cents a share, in the year-ago period. Adjusted earnings were $1.34 a share. Revenue rose to $405.2 million from $268.7 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 95 cents a share on revenue of $360.9 million. For the third quarter, Arista estimates revenue of $405 million to $420 million. Analysts expect revenue of $377.7 million.

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Grand jury subpoenas issued in connection with Trump Jr.'s Russian meeting: Reuters

Thu, 08/03/2017 - 16:32

Grand jury subpoenas have been issued in connection with the meeting Donald Trump Jr. had with a Russian lawyer, Reuters reported, citing two sources familiar with the matter. That's the meeting that emails subsequently show the son of President Donald Trump was told the Russian government had information that would incriminate Clinton. "If it's what you say, I love it," Trump Jr. wrote at the time. The Reuters report also confirms the Wall Street Journal report that a grand jury has been convened in Washington to investigate Russian interference.

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Weight Watchers stock rockets toward 5-year high after profit and sales beat, raised outlook

Thu, 08/03/2017 - 16:30

Shares of Weight Watchers International Inc. rocketed 23% in after-hours trade Thursday, after the weight management program company reported second-quarter profit and sales that beat expectation, and raised its outlook. Net earnings for the quarter to July 1 rose to $45.2 million, or 67 cents a share, from $30.5 million, or 46 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 51 cents. Revenue increased 10.3% to $341.7 million from $309.8 million, beating the FactSet consensus of $334 million, as service revenue grew 12.5% and product sales and other revenue was up 0.8%. End of period subscribers were up 20.1% and total paid weeks was up 16.8%. For 2017, the company boosted its EPS guidance range to $1.57 to $1.67 from $1.40 to $1.50. The stock was trading at $40.65 in the after-hours session, the highest price seen during regular session hours since October 2013. Through Thursday's close, the stock had nearly tripled year to date, while the S&P 500 had gained 10.4%.

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Viacom reports strong Q3 results as company continues revitalizing its business

Thu, 08/03/2017 - 16:29

Shares of Viacom Inc. rose nearly 4% in after-hours trade, following a strong fiscal third-quarter earnings report. The media and entertainment company reported net income of $680 million, or $1.69 per share, compared with $432 million, or $1.09 per share, during the same period a year ago. Adjusted earnings per share were $1.17, above FactSet's per-share consensus of $1.05. Revenue was $3.36 billion, up from $3.11 billion a year ago and above FactSet's $3.30 billion revenue consensus. Revenue at Viacom's on-the-mend media networks grew 2% to $2.56 billion, with both affiliate fees revenue and advertising revenue experiencing increases. The company said, however, that domestic revenue was substantially flat. Revenue at Paramount Pictures increased 189% year-over-year to $263 million. "Every day we are working to reinvent Viacom and revitalize its brands for the future, and the early, tangible results are encouraging," said Viacom Chief Executive Bob Bakish in a statement. "There remains much work to be done, but we will continue to build on this progress." Viacom's class B shares, owned by the public, have declined less than 1% in the year, while the S&P 500 index has gained more than 10%.

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Etsy shares up 3% after company swings to profit

Thu, 08/03/2017 - 16:24

Shares of Etsy Inc. rose 3% late Thursday after the company reported an unexpected profit in the second quarter. Etsy said it earned $11.7 million, or 10 cents a share, in the quarter, reversing a loss of $7.3 million, or 6 cents a share, in the year-ago period. Total revenue rose 19% to $101.7 million, from $85.4 million a year ago. Analysts polled by FactSet had expected a loss of 1 cent a share on sales of $101.2 million. The number of active sellers grew to 1.8 million in the quarter, from 1.7 million sellers a year ago, the company said.

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Yelp soars almost 18% after earnings beat, Eat24 sale

Thu, 08/03/2017 - 16:22

Yelp Inc. recovered from a damaging change to its ad business to post a big earnings beat Thursday, sending shares skyrocketing higher as the company also announced a partnership with GrubHub Inc. Yelp reported second-quarter net income of $7.6 million, or 9 cents a share, on sales of $208.9 million, up from results of a penny a share on sales of $173.4 million in the year-ago quarter. Analysts on average expected a loss of 8 cents a share on sales of $205 million, according to FactSet. Yelp's advertising business, which was hit by an update that caused an advertiser revolt in the first quarter, recovered to post sales of $186.6 million, up from $151.9 million a year ago and beating average analyst estimates of $184.1 million. In a separate announcement, Yelp said it is selling its Eat24 business, which it bought for $134 million in 2015, for $287.5 million to GrubHub and integrating GrubHub's similar offering into its own platform. Yelp also increased the low end of its full-year revenue guidance to $855 million from $850 million, and announced a $200 million share-repurchase plan. Yelp stock, which closed with a 2.7% decline at $31.37, jumped almost 18% to nearly $37 in late trading.

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Shake Shack shares slip on weak 2017 outlook

Thu, 08/03/2017 - 16:19

Shares of Shake Shack Inc. slid in Thursday's extended session after the casual restaurant chain issued a weak outlook for 2017. Shake Shack reported its second-quarter earnings rose to $4.9 million, or 19 cents a share, from $3.3 million, or 14 cents a share, a year ago. On an adjusted basis, it would have earned 20 cents a share. Analysts surveyed by FactSet had forecast earnings of 16 cents a share. Revenue grew 37% to $91.3 million, topping the $89 million projected by analysts. Same-store sales fell 1.8%. The burger chain sees 2017 revenue in a range of $351 million to $355 million, falling short of Wall Street's $356.7 million estimate while same-store sales are seen to decline 2% to 3%, worse than the analysts' expectation for 0.3% growth. Shake Shack shares edged down 0.2% after hours.

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