Apple Bear Upgrades, Coinstar’s Redbox Issue, and 3 Other Hot Stocks
Apple Inc. (NASDAQ:AAPL): ABG Sundal Collier analyst Per Lindberg has upgraded shares of Apple from Sell to Hold, revealed in a report issued on Thursday. “The central ingredients unveiled, directly and indirectly, in conjunction with the second quarter report should help to assuage previously far elevated earnings expectations,” Lindberg wrote. “As (1) revenue growth comes to an abrupt halt, (2) margin erosion undermines EPS comparisons, (3) inventories of iPhones and iPads build in the channel, (4) operators openly rebel against anti-competitive business practices, and (5) consumers request far greater affordability. These salient inferences – underpinning our negative stance in the recent past – persist. They are now more or less confirmed. They also appear to be more broadly understood.” He also maintained his price target of $400.
Coinstar (NASDAQ:CSTR): Earnings passed expectations, while revenue missed for the company, which operated the Redbox DVD rental machines, and the Coinstar change counters. Earnings of $0.93 beat by $0.07, though revenues of $574.7 million were short of the $580 million expectations. Sliding revenue from its Redbox division, as well as increased expenses contributed to the net profit decline of 58 percent year-over-year. The company also noted that while the vendor locations remained unchanged at 47,000, the the firm aims to improve Redbox’s performance by increasing the number of movies and relocating kiosks from lower-performing locations.
Chevron Corp. (NYSE:CVX): A comfortable earnings beat at $3.18 swings positive for the company, but revenue of $56.8 billion that missed by $10.07 billion doesn’t look so good. However, total output of 2.65 million BOE was up from 2.63 million BOE a year ago, though downstream operations earned $135 million compared to the $459 million last year, attributed to higher operating expenses from maintenance and upgrades at two refineries, and lower margins on refined product sales. Not helping matters was the average oil price, which slipped to $94 from $102 domestically year-over-year.
Wynn Resorts (NASDAQ:WYNN): It was a solid quarter for Wynn, which reported earnings of $2.03, beating by $0.48. Revenues of $1.37 billion, up 4.4 percent year-over-year, beat by $20 million. Profits were driven by performance in Macau, where mass-market table game turnover came in at $243.1 billion, up 13.6 percent year-over-year. Slips in entertainment revenue were offset by a 6.6 percent gain in Las Vegas room, food, and beverage sales.
AbbVie (ABBV): It was a solid quarter for the pharmaceutical maker, which posted earnings of $0.68, beating projections by $0.02. Revenue was up 3.7 percent, at $4.32 billion, driven by sales of Humira, which garnered a 16 percent gain over the same period last year. The company reaffirmed its guidance of $3.03 – $3.13 on an adjusted basis.
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