Vodafone Addresses Verizon Wireless Joint Venture and 3 More Hot Stocks
Verizon Wireless (NYSE:VZ): Vodafone’s (NASDAQ:VOD) chairman said that the second-largest wireless carrier in the world would seriously consider any offer for its stake in Verizon Wireless in light of Verizon Communications’s desires to buy out the 45 percent holding of the joint venture that it doesn’t own. Chairman Gerard Kleisterlee’s comments echo what Vodafone has made clear in the past — that it will consider proposals but is happy where things are at currently.
Wendy’s (NYSE:WEN): Shares are racing after the company posted a quarterly report that saw earnings per share of 8 cents beat by 2 cents but a $5.4 million miss on revenues of $650.5 million. The real stock mover is “system optimization” that is expected to cut G&A expenses by about $30 million and improve margins at company-owned stores by at least 50 base percentage points. Adjusted earnings per share growth is now pegged at the mid-teens beginning in 2014 versus the previous guidance of low double-digit growth. The quarterly dividend has also been raised by 25 percent, to 5 cents per share.
United Parcel Service (NYSE:UPS): Second quarter EPS of $1.13 fell in line with expectations, though revenue of $13.51 billion fell $0.08 billion shy. International and U.S. domestic daily package volume rose 5 percent and 1.9 percent year-over-year, respectively, with CEO Scott Davis noting that “market conditions and shipper preferences clearly impacted freight forwarding and [the] international business.” Operating margins fell across the board and global economic expectations have been lowered for the second half of the year.
Valero Energy (NYSE:VLO): Though EPS of 90 cents missed by 3 cents, revenue of $34.03 billion beat estimates by $2.25 billion. Refining throughput volumes averaged 2.6 million barrels per day, falling 52,000 barrels per day year-over-year. The Quebec City, McKee, Meraux and Port Arthur refineries all experienced significant turnaround and maintenance activities, and the company expects full-year 2013 capex of about 2.85 billion, of which $1.34 billion is set aside for growth investments.