Stock Buzz: J.C. Penney JUMPS, Arena Pharma and DeVry Struggle
J.C. Penney (NYSE:JCP) shares jumped more than 7 percent Friday morning before cooling off mid day and rallying since, despite reporting a weak second quarter. The company announced a loss of $147 million, compared to a net gain of $14 million a year earlier. Revenue also declined by 22.6 percent to $3.02 billion. “We have now completed the first six months of our transformation and while business continues to be softer than anticipated, we are confident the transformation of J.C. Penney is on track. The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course,” said Ron Johnson, chief executive officer. Shares of competitor Macy’s (NYSE:M) are now down over 1 percent.
Arena Pharmaceuticals (NASDAQ:ARNA) shares are down 1.22 percent after reporting financial results for the second quarter. The company’s loss narrowed to $22.1 million, compared to a loss of $22.9 million a year earlier. The FDA’s approval of BELVIQ in the second quarter was a significant development for obese and overweight Americans who need help losing weight,” said Jack Lief, Arena’s President and Chief Executive Officer. “We are focused on working with Eisai to launch BELVIQ in the United States following the completion of DEA scheduling, and expect BELVIQ to play a key role in physicians’ newly expanded toolkits for the medical management of obesity.”
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Shares of DeVry (NYSE:DV) dropped 4 percent Friday morning but have since recovered. Shares are down 3.22 percent. Net income for the recent quarter plunged 89.2 percent to $8.1 million (12 cents per share), compared to $75.2 million ($1.08 per share) a year earlier. Revenue also declined 7.5 percent to $505.9 million. “While we are disappointed with the results for this quarter and year, we are optimistic about mid- and long- term growth prospects in higher education and for DeVry,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are executing a plan to improve DeVry’s near-term performance.”
NVIDIA (NASDAQ:NVDA) shares fell 0.61 percent in late trading on Friday. Net income for the second quarter declined to 19 cents per share, compared to 25 cents per share a year earlier. However, earnings beat the mean analyst estimate of 15 cents per share. “Our investments in mobile computing and visual computing are both paying off,” said Jen-Hsun Huang, president and chief executive officer of NVIDIA. “Tegra has achieved record sales as tablets come into their own. Our GPU business made strong gains in a weak market, boosted by our breakthrough Kepler architecture. Looking ahead, we’re optimistic, as our investments position us right at the center of the fastest growing segments of computing.”
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