Ultimate Market Recap: Wal-Mart Gets Healthier, Buffalo Wild Wings Up 15%
Wall Street Watch: Greece Public Sector Cuts, Toyota and Coca-Cola Earnings
Late Monday, Greece announced plans to lay off 15,000 public-sector workers by year’s end according to The Wall Street Journal. The cuts will come from either getting rid of or cutting back on public-sector entities according to the Administrative Reform Minister Dimitris Reppas. In response to the news, Greece will stage a one-day strike against the new measures. Meanwhile, Greek Prime Minister Lucas Papademos and his country’s political leaders will continue their talks today over reforms demanded by Greece’s creditors.
Toyota (NYSE:TM) reported its third quarter profit dropped 13.5 percent to YEN 80.9 billion ($1.05 billion) but exceeded analyst forecasts as revenue increased 4.1 percent to YEN 4.865 trillion. The company’s numbers had been affected by Japan’s earthquake, the Thai floods and a strong yen. Confident that it is back on track along along with cost-cutting, Toyota increased its fiscal year 2012 profit forecast to YEN 200 billion from YEN 180 billion.
Coca-Cola Company (NYSE:KO) plans to double its net revenues to more than $200 billion by 2020, up from 2010’s $100 billion. Speaking at a Dubai sugar conference, Jacob Robbins, Coke’s managing director of the global sweeteners unit, said a positive longer-term macroeconomic outlook, demographic growth, along with a flourishing beverages industry, would contribute to the rising revenues. Robbins said,”We’ve got significant room for growth” and added that he sees 800 million new consumers entering the global beverage market in the next decade.
UBS (NYSE:UBS) reported its fourth quarter net profit came in below analyst expectations, tanking 76 percent to 393 million Swiss francs ($427.9 million). The company’s revenue dropped 16 percent to 5.97 billion francs. UBS announced a cautious 2012 outlook but said it will pay its first dividend since 2006 at $0.10 franc per share.
10 Popping Stocks: Yum! Jumps 2.2%, GlaxoSmithkline Falls 2% and Wal-Mart Goes Healthy
Coca-Cola Co. (NYSE:KO) shares increased .40 percent after reporting fourth quarter profits. Net earnings declined due to last year’s one-time gains related to its bottling transaction with Coca-Cola Enterprises Inc. (NYSE:CCE). However, total sales increased 5 percent.
Shares of GlaxoSmithkline PLC (NYSE:GSK) fell more than 2 percent early Tuesday. The company reported a fourth quarter profit of $1.64 billion. The vaccines segment also declined 18 percent. Shares of Pfizer Inc. (NYSE:PFE) and Bristol-Myers Squibb Co. (NYSE:BMY) also declined this morning.
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Shares of Yum! Brands Inc. (NYSE:YUM) jumped 2.2 percent in early trading. The food company reported earnings of $356 million (75 cents per share) for the fourth quarter. Analysts were expecting earnings of 74 cents per share. Shares of McDonald’s Corp. (NYSE:MCD) also climbed higher.
Toyota Motor Corp. (NYSE:TM) shares gained 2.5 percent this morning. The car-maker reported a lower third quarter profit, but raised its forecast for fiscal 2012 profit by 11 percent to $2.6 billion. Shares of Ford (NYSE:F) and General Motors (NYSE:GM) declined.
Investor Insight: Precious Metals Remain Strong as Greece Nears Deadline
In an effort to promote healthy products, Wal-Mart (NYSE:WMT) is reducing the fat, sugar and sodium in some of its private-label foods. The products that qualify under the new healthy plan will receive a “Great for You” label.
Active Stocks Feb 7th: BP, Nevsun Resources, Emerson Electric, Perrigo, BDX
BP plc (NYSE:BP): CEO Bob Dudley said he expects organic capital spending will grow to some $22B in 2012, up from 2011’s $19 billion as BP invests in growth. He anticipates investment of $16B-$17B in the upstream as BP invests in its pipeline of major projects and increases its exploration spend. Around $4.5B is expected to be invested in BP’s downstream businesses, slightly higher than 2011 as activity levels at the Whiting refinery upgrade ramp up. Dudley said he expects underlying production in 2012 to be broadly flat, excluding TNK-BP. Reported production is expected to be lower than 2011, with the actual outcome depending on divestments, OPEC quotas and the impact of oil price on production sharing agreements. The impact of divestments is expected to be around 120,000 boed in 2012 compared to 2011, depending on the timing of transactions. Shares of BP plc are trading 1.71% lower today.
Nevsun Resources (NYSEAMEX:NSU): Nevsun Resources announces its 2012 outlook for planned gold production of 190,000 to 210,000 ounces from the Bisha mine in Eritrea. The Bisha mine is one of the highest grade open pit base metal deposits in the world and has a mine life in excess of 12 years. Nevsun’s outlook includes production from the Bisha Main oxide reserve, stockpiles and Harena oxide. It does not include any production from the much larger and more valuable supergene and primary zones, which sit beneath the oxide zone cap and are scheduled to be brought into production in 2013 Shares of Nevsun Resources are trading 25.87% lower today.
Emerson Electric Co. (NYSE:EMR): Reports revenue $5.31B vs. consensus $5.29B. Shares of Emerson Electric Co. are trading 2.92% lower today.
Perrigo Company (NASDAQ:PRGO): New product launches including the generic versions of Mucinex, Prevacid, Delsym, and Allegra D12 are expected in the 2H of Perrigo’s FY12. The company’s Rx Pharmaceuticals segment continues to outperform their expectations. Shares of Perrigo Company are trading 2.48% higher today.
Becton, Dickinson and Co. (NYSE:BDX): This decline was due to difficult pricing comparisons, higher raw material costs and higher expenses from recent acquisitions. Shares of Becton, Dickinson and Co. are trading 3.87% lower today.
The Coca-Cola Company, Harman, YUM!, Coinstar Hot Among Stock Traders Feb. 7th
The Coca-Cola Company (NYSE:KO): The company says “In 2012 we are launching both a new global productivity initiative and an expanded CCR integration effort under one joint Productivity and Reinvestment program representing a combined incremental $550 to $650 million in annualized savings by the end of 2015. The first initiative, a new four-year global productivity program, will target $350 to $400 million in annualized savings by the end of 2015. Second, our CCR integration efforts are now expected to capture total annualized savings of $550 to $600 million, or an incremental $200 to $250 million above our original $350 million estimate. We expect to capture this incremental $200 to $250 million in annualized savings by the end of 2015. We estimate that total costs associated with the capture of all CCR-related synergies will increase from $425 million to about $800 million, as we implement new initiatives to capture our higher annualized savings target.” Shares of The Coca-Cola Company are trading 1.31% higher today.
Harman International Industries Inc./DE/ (NYSE:HAR): Reports Q2 revenue $1.13B vs. consensus $1.05B. Shares of Harman International Industries Inc./DE/ are trading 5.8% higher today.
Yum! Brands, Inc. (NYSE:YUM): Yum! Brands anticipating Russia to become “big business.” Shares of Yum! Brands, Inc. are trading 3.24% higher today.
Coinstar, Inc. (NASDAQ:CSTR): Piper Jaffray believes Coinstar’s plans to launch a joint venture with Verizon and acquire NCR’s DVD kiosk assets will accelerate share gains in the movie rental space. The firm reiterates an Overweight rating on Coinstar shares post the company’s Q4 results and maintains a $68 price target for the stock. Shares of Coinstar, Inc. are trading 18.04% higher today.
GlaxoSmithKline, BofA, Toyota, SuperValu Stocks Attracting Trading Attention Feb 7th
GlaxoSmithKline (NYSE:GSK): During the year the company completed GBP2.2B of share repurchases as part of its long-term program. Based on current market conditions, the company is currently targeting repurchases of GBP1-2B shares in 2012. The company said, “We expect further delivery from our R&D organisation in 2012. I am pleased to confirm that of the 15 late-stage drugs and vaccines we highlighted last year, we have received some or all of the data on nine of them. Most importantly, one has already filed and we have three more ready to file. In addition, our quadrivalent flu vaccine, which was not included in the 15, has progressed very quickly and will also file very shortly. We expect Phase III development programmes to complete for a further six assets and indications this year. All this comes with increasing signs that we can replenish our pipeline on an ongoing basis.”
Bank of America Corporation (NYSE:BAC): Though officials had hoped to announce a final settlement as early as this week, a Reuters reports that a multi-state mortgage settlement is likely to be pushed back again as U.S. states continue to press specific concerns. As of Monday, many states had not yet reached a settlement, under which top U.S. banks could pay up to $25B to resolve civil government lawsuits about misconduct in servicing home loans and pursuing faulty foreclosures. Shares of Bank of America Corporation are trading 0.88% lower today.
Toyota (NYSE:T): The National Automobile Dealers Association projects previously owned vehicles prices will rise 1.8% in 2012, with much of the increase coming in the second half, reported The Wall Street Journal.
SuperValu (NYSE:SVU): SuperValu announced plans to reduce its national workforce by an estimated 800 positions. A majority of these reductions will take place by the close of the company’s fiscal year on February 25. The reductions include both current positions and open jobs that will not be filled. The announcement affects all company offices and crosses most departments within the organization. In general, store level associates are not affected by this announcement.
Market Recap: Stocks Up But Thinly Traded as Greece Makes Slow Progress
Markets closed up on Wall Street today: Dow +0.26%, S&P +0.20%, Nasdaq +0.07%, Oil +1.88%, Gold +1.36%.
On the commodities front, Oil (NYSE:USO) rose to $98.73 a barrel. Precious metals were also up, with Gold (NYSE:GLD) climbing to $1,748.30 an ounce while Silver (NYSE:SLV) rose 1.41% to settle at $34.23.
Today’s markets were up because:
1) Greece. Again. Until the (hopefully) soon-to-be twice bailed out nation is able to satisfy its troika of lenders — the European Commission, European Central Bank, and International Monetary Fund — markets will continue to be slaves to the government that makes U.S. lawmakers look effective. Today, stocks opened lower amid concerns that Greek politicians might not reach an agreement on reforms needed to secure fresh bailout money and avoid a default, but markets bounced back after reports suggested that progress was being made in negotiations.
2) Consumers. The Federal Reserve announced this afternoon that consumer borrowing in the U.S. rose more than forecast in December, driven by demand for auto and student loans. Analysts say consumers’ willingness to take on debt signals a growing confidence in the economy. Of course, Americans could also be taking on debt because gains in employment have yet to push wages high enough for consumers to continue shopping.
3) Earnings. BP (NYSE:BP) shares fell on Tuesday, though the oil company reported increased fourth-quarter profits and raised its dividend. Investors remain wary of how much the Deepwater Horizon oil spill will cost following a trial that is set to begin later this month. UBS (NYSE:UBS) shares also declined after the Swiss bank posted a 75 percent drop in fourth-quarter profit. Yum! Brands (NYSE:YUM) shares spiked after the fast-food operator beat earnings, thanks to growth in China, while Coca-Cola (NYSE:KO) shares also climbed higher after topping earnings and sales estimates for the fourth quarter. Disney (NYSE:DIS) shares were up in anticipation of earnings after the bell.
10 Late Radar Stocks: Buffalo Wild Wings Fly 15% Higher, While Yahoo! Cleans House
Walt Disney Co. (NYSE:DIS) shares declined 1.2 percent in late trading after reporting its fiscal first quarter earnings. The entertainment giant earned 80 cents per share, while analysts had only expected 72 cents per share. However, revenues of $10.78 billion fell short of $11.18 billion estimates.
Shares of Buffalo Wild Wings Inc. (NASDAQ:BWLD) surged more than 15 percent after the closing bell. The company reported earnings of 73 cents per share for the fourth quarter, surpassing estimates of 67 cents per share.
Yahoo! Inc. (NASDAQ:YHOO) shares edged lower after announcing that Chairman Roy Bostock and three longtime board members are leaving the Internet company. Bostock is departing along with Vyomesh Joshi, Arthur Kern and Gary Wilson. Shares of Google Inc. (NASDAQ:GOOG) edged higher on the news, while AOL Inc. (NYSE:AOL) declined.
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Freeport McMoRan Copper & Gold (NYSE:FCX) shares bounced .42 percent in extended trading hours. The company reported it has increased its annual common stock dividend from $1 per share to $1.25 per share. The increase “reflects our financial strength and positive outlook for our business,” said James Moffett, chairman of the copper and gold producer. Shares of Southern Copper Corp. (NYSE:SCCO) also edged .31 percent higher.
Although shares closed 1.09 percent lower during regular trading, Hartford Financial (NYSE:HIG) climbed 1.26 percent higher after the closing bell. The company said its fourth quarter profit declined 79 percent to $127 million (24 cents per share). Excluding items, earnings were 69 cents per share.
Shares of BHP Billiton Ltd. (NYSE:BHP) climbed .89 percent, despite reporting that its first half profit declined 5.5 percent. However, revenue increased nearly 10 percent to $37.5 billion.
Panera Bread Co. (NASDAQ:PNRA) shares declined more than 2 percent after reporting earnings per share of $1.42 per share, excluding an 11 cent settlement charge. Sales increased 16 percent to $495.8 million, but missed estimates of $499 million.
Investor Insight: Precious Metals Remain Strong as Greece Nears Deadline
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