Wal-Mart’s Soft Quarter, Rio Tinto’s Arizona Mine Project, and 3 More Hot Stocks
Wal-Mart Stores (NYSE:WMT): Shares are up slightly despite Wal-Mart’s report of comparable-store sales in the U.S. falling by 0.3 percent during the third quarter, though e-commerce had a positive impact on comparable-sales figures by about 0.2 percent. By revenue, Walmart U.S. grew 2.4 percent to $67.692 billion, Walmart International lifted 0.2 percent to $33.109 billion, and Sam’s Club gained 1.1 percent to $14.075 billion. Wal-Mart plans to close 50 underperforming stores in Brazil and China; the fourth-quarter earnings per share guidance has been lowered to $1.60-$1.70 against a $1.69 consensus.
Rio Tinto PLC (NYSE:RIO): Rio Tinto should have a mine plan for U.S. authorities submitted this week regarding the development of its $6 billion Resolution project in Arizona, one of the world’s largest undeveloped copper deposits. Rio Tinto estimates that the mine will be good for 500,000 metric tons per year of copper at its peak, enough output to meet one quarter of annual U.S. copper demand.
Viacom Inc. (NYSE:VIAB): Viacom has reported EPS of $1.55, beating by 11 cents, as revenue of $3.65 billion also beat expectations, by $0.05 billion. Media Networks grew 7 percent on rate increases in global and domestic markets, while Filmed Entertainment surged 11 percent, led by a strong release of World War Z. An accelerated pace of revenue helped to offset the increased programming and corporate expenses.
Cisco Systems Inc. (NASDAQ:CSCO): Cisco shares are off sharply as the company reports EPS of 53 cents that beat by 2 pennies and revenue of $12.1 billion that missed by $0.25 billion. Although Cisco added $15 billion to its buyback plan, weak guidance sparked a 12 percent selloff; second-quarter revenue is expected to decline 8-10 percent over the year-ago quarter with EPS of 45 cents-47 cents, well below a consensus calling for a 4.1 percent revenue gain and EPS of 52 cents.
Novogen Ltd. (NASDAQ:NVGN): Novogen shares are rocketing: The company says it will ”expand the commercial scope” with degenerative disease discovery and says its scientists “came to suspect that the action of [the company’s] drugs is not so much the fact that the stem cells are cancerous, but that they are behaving abnormally.” Acting on this, the company began a “pilot study looking into [the drugs’] effect on abnormal stem cells responsible for causing degenerative diseases.”