Morning BUZZERS: Facebook FALLS on Lockup Expiration, Wal-Mart DISAPPOINTS
Shares of Wal-Mart Stores (NYSE:WMT) declined 3.28 percent after reporting results for the second quarter. Net income rose 5.7 percent to $4.02 billion ($1.18 per share), compared to $3.8 billion ($1.09 per share) a year earlier. However, sales came in at $114.3 billion, below estimates of $115.8 billion. Target (NYSE:TGT) shares also fell in morning trading.
Sears Holdings (NASDAQ:SHLD) jumped 4.59 percent this morning. The company reported that its second quarter loss narrowed to $132 million, compared to a $146 million loss a year earlier. Lou D’Ambrosio, Sears Holdings’ Chief Executive Officer and President, said, “We continue to make progress against the priorities we outlined in our fourth quarter earnings release and call. In particular, we have improved our profit position, as we reduced expenses and expanded margin rate through more effective promotional design. We have also successfully lowered inventory, reduced debt from year end, and enhanced our liquidity.”
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Cisco Systems (NASDAQ:CSCO) shares surged more than 8 percent this morning. The company yesterday announced that net income for its fourth quarter rose to $1.92 billion (36 cents per share), compared to $1.23 billion (23 cents per share) a year earlier. The company also raised its quarterly dividend 75 percent to 14 cents a share. “As a result of our strong performance, continued execution on our plan to deliver profitable growth, and commitment to shareholders, for the full fiscal year, we delivered revenue growth of 7 percent as well as a record year in revenue and earnings per share,” stated Cisco Chairman and CEO John Chambers.
Facebook (NASDAQ:FB) shares dropped 5.83 percent, as the company’s lockup on 271 million shares expires today. The lockup allows Facebook insiders to sell their shares, placing additional pressure on the struggling social media juggernaut.
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