GE’s Mixed Quarter, Under Armour’s Push for China, and 3 More Hot Stocks
General Electric (NYSE:GE): EPS of 36 cents fell in line with expectations, though GE’s revenue of $35.73 billion missed widely, by $3.11 billion. However, shares are up over 3 percent, although net profit fell 9 percent to $3.2 billion, as sales dropped 1 percent. Falling revenues at GE Capital due to planned asset reductions and and a negative forex impact of $132 million put a dent in the company’s results. However, total orders grew 19 percent during the quarter, to $25.7 billion, as U.S. orders rose 18 percent, Europe up 17 percent, and growth market up 22 percent.
Under Armour (NYSE:UA): Retail analyst Brian Sozzi says that it appears Under Armour is making a covert push into the Chinese market, with a large new concept store in Shanghai and NBA stars traversing across the country to boost its product awareness. Seeking Alpha reports that since just 10 percent of Under Armour’s revenues come from outside the U.S., there is massive potential upside to come of a strong external push.
Chipotle Mexican Grill (NYSE:CMG): Despite an EPS miss (EPS of $2.66, missing by 12 cents), a revenue beat ($826.9 million, beating by $7.4 million) and a comparable store sale increase of 6.2 percent during the third quarter on an increase in store traffic is fueling a 13-plus percent run-up in the stock. Chipotle is apparently warm to the idea of raising prices in mid-2014, to accommodate rising food costs. Moreover, Chipotle guided for the fourth quarter same-store sales to be similar to, or slightly better than, this quarter’s 6.2 percent.
Chesapeake Energy Corp. (NYSE:CHK): The Daily Mail reports that oil giants are apparently watching Chesapeake as a potential acquisition as activist investor Carl Icahn has recently upped his stake in the company to 10 percent. Both BP and Royal Dutch Shell are rumored to be eyeing the company at around $40 per share.
Ariad Pharmaceuticals (NASDAQ:ARIA): Ariad has officially ended its Phase III trial of Iclusig after putting it on hold las week amid FDA reports of blood clots, fatal heart attacks, worsening coronary artery disease, stroke, and the narrowing of large arteries of the brain. Iclusig is currently approved in the EU and U.S. for certain types of leukemia, but Ariad will make labeling changes to the drug to reflect the cardiac issues.
Investing Insights: Here’s Why GE’s Q3 Revenue Dip Didn’t Scare Investors.