Afternoon Buzzers: True Religion Surges 20%, Yum! and Costco Climb Higher
Shares of Yum! Brands (NYSE:YUM) jumped more than 8 percent. The quick-service food company said net income in the third quarter rose 23 percent to $471 million ($1 per share), compared to $383 million (80 cents per share) a year earlier. David C. Novak, chief executive officer, said, “Very strong sales and profit at all of our divisions, including China, Yum! Restaurants International, India and the U.S., drove 19 percent third quarter EPS growth. Given the strength of our year-to-date results, I’m pleased to report we are raising our full-year EPS growth forecast to at least 13 percent, excluding special Items.” McDonald’s (NYSE:MCD) shares also increased on the results.
True Religion Apparel (NASDAQ:TRLG) shares surged more than 20 percent after saying it may sell itself, as the company has been receiving buyout interest. The company’s board has formed a special committee to evaluate and analyze a possible deal.
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Alcoa (NYSE:AA) shares fell more than 4 percent. Late Tuesday, the aluminum giant unofficially kicked off earnings season after the closing bell. Alcoa reported a loss of $143 million (13 cents per share), compared to $172 million (15 cents per share) a year earlier. Excluding special items, earnings per share came in at 3 cents, above analyst estimates.
Shares of Costco Wholesale (NASDAQ:COST) gained 3.19 percent. The company announced that net income rose 27.4 percent in its fiscal fourth quarter to $609 million ($1.39 per share), compared to $478 million ($1.08 per share) a year earlier. Revenue also jumped 14.3 percent to $32.22 billion. The company has now seen its net income increase for three consecutive quarters, while revenue has risen for the last four quarters.
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