Shares of Michael Kors Holdings Ltd. (NYSE: KORS), an apparels and accessories company based in Hong Kong, saw a huge rally on Tuesday after the company reported its first-quarter financial results.
KORS reported a 71% increase in revenue to $414.9 million for the first quarter. The company’s retail net sales rose 76%, driven by a 37% increase in same-store sales and new store openings. Wholesale net sales surged 66% to $182.4 million. Licensing revenue for the quarter jumped 61% to $17.5 million.
KORS first-quarter earnings nearly tripled to $68.6 million, or $0.34 per share, prompting the company to raise its full-year earnings estimate. It now expects full-year earnings to be between $1.32 per share and $1.34 per share. Revenue for the full year is expected to be between $1.8 billion and $1.9 billion.
KORS shares rose to an intra-day high of $49.65 on Tuesday. The stock ended the day 16.48% higher at $49.33 on above average volume of 18.55 million.
Shares of daily-deals website Groupon Inc. (NASDAQ: GRPN) were amongst the biggest losers on Tuesday. The stock plunged as investors digested the company’s second-quarter financial results.
GRPN’s second-quarter billings, a key measure for companies doing business online, dropped 5% from the first quarter.
GRPN’s revenue from its international business dropped 4% on a sequential basis in the second quarter. International business revenue accounted for approximately 54% of GRPN’s total revenue in the second quarter.
The company’s gross margin for the quarter also dropped on a sequential basis. Gross margin fell to 76.2% in the second quarter.
GRPN shares fell to an intra-day low of $5.46 on Tuesday before finishing the day 27.02% lower at $5.51 on above average volume of 62.34 million. The stock has now fallen nearly 79% since its November 2011 IPO.
Shares of Cobalt International Energy Inc. (NYSE: CIE), an independent, oil-focused exploration and production company with a salt prospect inventory in the deepwater of the U.S. Gulf of Mexico and offshore Angola and Gabon in West Africa, surged on Tuesday after Deutsche Bank analyst Ryan Todd issued a positive report on the company/
Todd said that the recent sell-off in CIE shares was sparked by high expectations, a complex quarter and conservative comments from the company’s management during its last earnings report. However, Todd believes that the market is overlooking some of the finer points of the period and the company’s growth potential in the long-term. Todd reiterated his Buy rating on CIE stock.
CIE shares rose to an intra-day high of $23.69 on Tuesday. The stock ended the day 13.72% higher at $23.63 on above average volume of 6.30 million.
Shares of Towers Watson & Co. (NYSE: TW), a global professional services company offering solutions in the areas of employee benefits, management, rewards, and risk and capital management, tumbled on Tuesday after the company’s outlook fell short of expectations.
TW also reported its fourth-quarter financial results. The company’s fourth-quarter net income was $65.3 million, or $0.91 per share, compared to $43.8 million, or $0.59 per share reported for the same period in the previous year. Excluding one-time items, TW’s adjusted earnings for the fourth quarter were $1.25 per share. Sales for the quarter were $826 million, down from $851 million reported for the same period in the previous year.
TW’s adjusted earnings for the fourth quarter beat Street estimates by a penny. However, sales for the fourth quarter missed estimates of $868 million.
For the first quarter, TW expects adjusted earnings of $1.10 per share, which is well short of Street estimates of $1.26 per share.
TW shares fell to a new 52-week low of $50.57 on Tuesday. The stock ended the day 11.73% lower at $51.68 on above average volume of 2.14 million.
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