Sprint Gets Sued, Constellation’s So-So Quarter, and 3 More Hot Stocks
Sprint (NYSE:S): It seems that in all the merger and acquisition excitement, the third largest wireless carrier in the U.S. forgot (or failed) to collect and pay sales tax on cellular plans. As a result, the company is being sued for $300 million by New York Attorney General Eric Schneiderman, after a New York Supreme Court judge denied the carrier’s motion to dismiss the case. Judge Peter Sherwood wrote that the complaint “satisfactorily alleges that Sprint knowingly submitted false monthly tax statements.” The estimated toll on the state government stands at about $100 million.
Constellation Brands (NYSE:STZ): Shares are down slightly after the company reported earnings of $0.38, missing expectations by $0.03, and revenue of $673 million, missing estimates by $1.24 million. Wine and spirits net sales went up 4 percent, mainly on gains in volume, although higher grape costs and SG&A expenses hurt the sector. The company predicts a 2014 EPS figure of $2.60-$2.90, versus the $2.82 consensus.
Amgen Inc. (NASDAQ:AMGN): Following its rejection of Amgen’s $120 per share offer, Onyx (NASDAQ:ONXX) has grabbed the attention of some of the biggest names in the biz, including Pfizer (NYSE:PFE). The jewel at the heart of the M&A interest is Onyx’s Kyprolis drug, which promises a strong revenue stream, in addition to Onyx’s already strong pipeline.
Hyatt Hotels Corp. (NYSE:H): Hyatt has signed on to a tentative labor agreement with the Unite Here union, effectively ending a four-year argument between the chain and the union, which represents thousands of the company’s employees. The contracts would provide retroactive wage increases and keep employees’ current healthcare and pension benefits through 2018.