Stock Futures Advance After Strong Earnings: Morning Buzzers
Stock futures advanced on Tuesday morning, despite some underwhelming economic data out of China and the euro zone. The bad mojo brewed up by economic headwinds seemed to dissipate in the face of strong earnings. Bloomberg reports that 72 percent of the companies that have reported earnings so far this season have beat analyst expectations. However, overall profit is down 1.1 percent on the year.
Futures at 8:45 a.m.: DJIA: +0.41%, S&P 500: +0.38%, NASDAQ: +0.68%.
Here’s what’s buzzing on Tuesday morning:
Coach (NYSE:COH) climbed as much as 14 percent in pre-market trading. The company reported that revenue increased 7.2 percent on the year during its third fiscal quarter to $1.19 billion, fractionally ahead of estimates for $1.18 billion. Net income increased 10 percent on a constant-currency basis to $0.84 per share, ahead of estimates for $0.81 per share. The board also voted to increase its cash dividend by $0.15 to an annual rate of $1.35 per share.
Netflix (NASDAQ:NFLX) climbed as much as 24 percent in pre-market trading after reporting earnings. Revenue increased 17.7 percent to $1.024 billion, in line with estimates. Adjusted Earnings Per Share increased to $0.31 in the quarter versus EPS of $-0.08 in the year-earlier quarter. The company added more than 3 million streaming members, bringing it up to 36 million total.
Travelers (NYSE:TRV) climbed as much as 2.8 percent in pre-market trading after reporting earnings. Net income increased 15 percent on the year to a record $2.31 per diluted share. Operating income climbed 15.9 percent to $887 million, or $2.31 per share. The board also approved a 9 percent increase in the quarterly dividend to $0.50 per share.
United Technologies (NYSE:UTX) was up about 0.4 percent in pre-market trading. The company reported that first-quarter earnings increased 6 percent on the year to $1.39 per share, and net income attributable to common shareholders increased 7 percent to $1.3 billion. Sales climbed 16 percent to $14.4 billion.
RadioShack (NYSE:RSH) was off as much as 7.6 percent in pre-market trading after the company reported a loss of $0.43 per share. Comparable-store sales declined 5.7 percent, while net sales declined 7.0 percent. Gross margin fell 80 basis points to 40 percent of net sales.
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