Shares of healthcare service providers rallied on Tuesday after the government announced new rates which showed that companies running Medicare Advantage plans will get considerable more money than originally expected. Shares of Dow Component, United Health Group (NYSE: UNH) climbed about 5% by afternoon trade while Humana Inc. (NYSE: HUM), Cigna Corporation (NYSE: CI), Aetna Inc. (NYSE: AET), WellPoint Inc (NYSE: WLP) also jumped.
Shares of beleaguered daily deals site, Groupon Inc. (NASDAQ: GRPN) tumbled on Tuesday after Eric Sheridan, an analyst at UBS initiated coverage on Groupon with “sell” rating and set a price target of $4.40 a share. Sheridan is not convinced about Company’s business model. In his research note to clients, Sheridan said, “ (The Company) has a largely unproven business model, a wide ranging global business mix in transformation, and is undergoing a management change.”
Shares of Shoe Carnival (NASDAQ: SCVL) gained, benefitting from optimism which surrounded the Wall Street on Tuesday. The Company late last evening, reported lower-than-expected revenue for the fiscal first quarter and provided downbeat outlook on the current quarter, citing unfavorable weather patterns which hurt its footwear sales. For the quarter concluded February 2, Shoe Carnival posted a profit of $3.2 million, or 13 cents a share, down from $3.3 million, or 16 cents a share, in the year earlier quarter. Stripping out onetime items, earnings on adjusted basis came at 16 cents a share. Revenue climbed 13% to $205.7 million but missed Street’s consensus forecast for $210 million. Comparable-store-sales rose 0.5%. For the current quarter, the Evansville, IN, expects earnings to come in the range of 36 cents to 44 cents a share on net sales of $226 million to $232 million. Analysts’ consensus estimate was for earnings of 57 cents a share on net sale of $240 million, according to a data compiled by Thomson Reuters.
Shares of Urban Outfitters Inc. (NASDAQ: URBN) climbed about 4.50% by afternoon trade. The specialty apparel retail chain said late last evening that comparable-store-sales were very strong during the first two months of the fiscal first quarter. The Company said that it now expects comparable-store-sales to show a higher single digit percentage growth.
Shares of Mankind Corporation (NASDAQ: MNKD) leaped about 8% by afternoon trade after Bank of America analyst Steve Byrne maintained “buy” rating on the development-stage biopharmaceutical Company and boosted the price target on the stock to $5 a share from $3 a share.
Shares of Hertz Global Holdings Inc. (NYSE: HTZ) rallied after the largest publicly traded U.S. auto-rental chain provided optimistic outlook on 2015 earnings. Shares touched an intra-day high of $24.02, highest level since October 2007. The Company is benefitting from its recent $2.6 billion acquisition of Dollar Thrifty Automotive Group, which not only created synergies but also made it as the second largest player in the U.S. auto-rental market. The Company now expects non-GAAP earnings to come in the range of $3.10 to $3.30 a share in 2015 while Street’s consensus estimate was for earnings of $2.39 a share.
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