Shares of the Coca Cola Company (NYSE: KO) fell about 2.90% in early trade as the soft drink giant disappointed with fiscal second quarter results. Coca Cola posted a net income of $2.68 billion or 59 cents a share compared to a profit of $2.79 billion or 61 cents a share, in the year-earlier quarter.
After adjusting onetime items such as restructuring charges and certain tax expenses, the Company earned 63 cents a share up from 61 cents a share, in the same quarter of last year. Adjusted earnings were in-line with expectation. Revenue slipped 2.6%. Excluding impact of foreign exchange fluctuations sales declined 3% $12.75 billion. Analysts surveyed by Thomson Reuters had forecasted revenue of $12.96 billion. Coca Cola blamed fragile global macroeconomic environment and harsh weather for its poor performance.
Shares of Cintas Corporation (NASDAQ: CTAS) were falling about 3.35% in early trade. The Uniform maker, late last evening, provided downbeat outlook for the new fiscal year. The Company cited healthcare reforms (Affordable Care Act) could press its customers to delay hiring which in turn could impact the demand for uniforms. Earnings for the fiscal fourth quarter also fell a penny short of expectation. For the quarter ended May 31, the Company earned 69 cents a share up from 60 cents, in the year earlier quarter. Revenue rose 7% to $1.13 billion, which was in-line with expectation. For the new fiscal year, Cintas Corp expects earnings to come in the range of $2.66 to $2.75 a share on revenue of $4.5 billion to $4.6 billion. Analysts’ consensus estimate was for earnings of $2.80 a share on revenue of $4.56 billion, according to a data compiled by FactSet.
Shares of Marathon Petroleum Corp. (NYSE: MPC) plunged about 4.75% by midday trade.
The Company said late on Monday that its refining and marketing businesses were affected due to Renewable Fuels Standard Law. The Company said that fiscal second quarter results will now fall short of expectation. Marathon Petroleum said that factors such as lower crude oil differentials and product realizations compared to spot prices, will weigh on results. Marathon now expects income to come between $570 million and $600 million or $1.75 to $1.85 a share. Marathon said that it will book a charge of 12 cents a share towards pension settlement. Analysts polled by FactSet had forecasted earnings of $2.65 a share.
Baidu.com Inc. (ADR) (NASDAQ: BIDU) rallied after China’s leading search engine announced that it has entered in a preliminary deal with NetDragon to acquire 91 Wireless, a leading developer of app stores in China, in deal valued at $1.9 billion. According to the deal, Baidu.com will acquire 57.4% stake from 91 Wireless for $1.09 billion while remainder share will be bought from other shareholders. The Chinese mobile internet market is expected to double to 300 billion yuan in 2014 from 150 billion yuan in 2012.
Buffalo Wild Wings (NASDAQ: BWLD) fell about 3.30% by midday trade after the restaurant chain’s stock was downgraded by Baird Equity Research to “neutral” from “outperform”.
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