Shares of e-commerce marketplace, Groupon Inc. (NASDAQ: GRPN) gained sharply on Thursday after Morgan Stanley upgraded the stock to a “buy”, citing turnaround in North American region due to the introduction of the deal bank. Besides, in the research report, Morgan Stanley’s equity analyst, Scott Devitt also said that Groupon’s growing revenue from mobile business is raising confidence that the company will soon be able to stage a turnaround in other regions such as Europe, The Middle-East and Africa and benefit from sizable market opportunity. So far this year, the Stock has gained 126%.
Shares of SAIC Inc. (NASDAQ: SAI) fell sharply on Wednesday after the defense contractor reported a dip in fiscal second quarter profit. Weaker revenue, expenses linked to a separation of the company into two and big asset impairment charge all weighed on the bottom line. Revenue and earnings per share also fell short of Street’s forecast. Besides, the Company also downwardly revised its outlook for the fiscal 2014. The Company now expects revenue of $9.7 billion to $10.2 billion down from earlier guidance of $10 billion to $10.7 billion.
Telecom-equipment maker, Ciena Corporation (NASDAQ: CIEN) reported on Wednesday that fiscal third quarter loss narrowed as the bottom line was bolstered by higher revenue and wider margin. Shares rallied as both revenue and earnings beat analysts’ expectations. In addition, the Company also handed strong guidance for the current quarter. The Company anticipates revenue of $550 million to $580 million while Street’s consensus estimate was of $551 million. Revenue from equipment business rose 17% to $437.4 million while revenue from services edged up slightly to $100.9 million, in the latest period. Overall, revenue increased 14% to $538.4 million. Gross margin widened to 42.4% from 38.2%.
South Korean electronic goods giant, Samsung is ready to launch its new large-screen Galaxy Note 3 series phone at IFA, Berlin, (annual consumer electronics trade show) on Wednesday. However, all gadget freaks are eagerly waiting for the simultaneous launch of the “Smartwatch”, more popularly dubbed as Galaxy Gear. Earlier this week, Samsung Electronics’ executive also confirmed to a local newspaper that the company was all set to launch its latest offerings this Wednesday, referring to smartphone as “new wearable concept device”.
Jarden Corp. (NYSE: JAH), which supplies wide-ranging consumer products, announced on Monday that it has agreed to buy a Yankee Candle Company Inc from a private equity firm, Madison Dearborn Partners LLC. in a deal valued at $1.75 billion. Yankee Candle was bought by Madison Dearborn Partners LLC in 2006 for $1.6 billion. The deal, Jarden said will be financed partially through cash, stock and debt, Jarden said. Commenting over the deal, Jarden Corp’s founder and CEO Martin Frankin said that this was the Company’s first major acquisition since April 2010. The deal is expected to bolster sales in the Company’s branded consumer good division.
Jordan Rohan and Michael Purcell, Equity research analysts at Stifel raised price target on Facebook Inc. (NASDAQ: FB) to $50. The firm reiterated a “buy” rating on the stock. The research report cited Facebook’s unexpected growth in the recent past, which breached the earlier price target of $38.01. The analysts expect that the stock’s uptrend will continue as the social networking giant has been consistently beating analysts’ expectation on revenue front even as margins are improving incrementally. Shares of Facebook, however, were nearly flat at $41.31 by mid-day trade on Friday.
Wall Street Journal, citing sources familiar with the matter said on Friday that General Electric Co. (NYSE: GE) is planning to spin off its U.S. consumer lending operations, which is a part of the finance unit of GE capital. The move comes as the conglomerate looks to shift its focus towards core competencies, which is manufacturing industrial goods. The report said that the conglomerate is concerned about its exposure to the banking sector. Wall Street Journal also said that the initial process to spin off its consumer lending arm though an initial public offer has already begun.
K12 Inc. (NYSE: LRN), a technology-based education provider handed better-than-expected fiscal fourth quarter results. For the latest quarter, the Herndon, VA based Company reported net income of $2.2 million or 6 cents a share compared to a profit of $1.8 million or 5 cents a share, in the year-earlier quarter. Analysts polled by Thomson Reuters had expected earnings of 3 cents a share. Revenue jumped 19.2% in the latest quarter to $203.1 million from $170.4 million. Analysts’ consensus estimate was for revenue of $200.96 million.
Although Signet Jewelers Inc.’s (NYSE: SIG) fiscal second-quarter revenue rose 3% and core earnings topped analysts’ expectation, shares fell sharply on Wednesday as women accessories provider’s guidance for the current quarter fell short of Street’s expectation. Revenue in the latest period also missed Wall Street’s expectation, mainly due to its disappointing performance in the U.K. Online sales jumped 29% in the fiscal second quarter while overall sales improved in the U.S. For the current quarter, Signet anticipates earnings of 37 cents to 43 cents while analysts’ expectation was for 48 cents a share.
Mining equipment company, Joy Global Inc. (NYSE: JOY) reported on Wednesday that fiscal third quarter net income slipped 5.3% as margin narrowed and sales declined. Still, core earnings and revenue topped Street’s expectation. Shares, however, fell sharply as the company expects some headwinds in coming months. Citing corrections in coal prices (China and Australia), CEO, Mike Sutherlin said to analysts in a conference call, “ (current trends) are unlikely to support annual revenue above $4 billion.” The Company backed its full-year earnings outlook though. Separately, the Company said that its board has approved shares buyback plan worth $1 billion. |
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