A.M. Buzzers: Staples Downsizing, Apple Declines
Shares of Walgreen (NYSE:WAG) jumped 1.35 percent today. The healthcare retailer was added to Goldman Sachs’ (NYSE:GS) Conviction-Buy list, with a price target of $43 a share. The investment firm cites, “We expect earnings growth to reaccelerate as Walgreen recaptures lost Express Scripts business and generates some accretion from the recent Alliance Boots deal.”
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Staples (NASDAQ:SPLS) shares fell more than 5 percent this morning. The office-supply company is planning a restructuring that will close several stores in the United States and Europe. It plans to close 30 stores in the U.S. and 45 stores in Europe. Furthermore, the total store square footage in the U.S. is being reduced by 15 percent.
Apple (NASDAQ:AAPL) shares fell slightly lower this morning. The tech giant recently announced it sold more than five million iPhone 5 units in the three days since it reached stores. Although it broke the previous record held by the iPhone 4S, analysts were expecting closer to 8 million units. However, Apple faced supply issues and pre-orders that have not been received yet are not accounted for the 5 million figure. Reports indicate that the in-cell screen technology used in the iPhone 5, which combines the display and the touch sensor into one part, also contributed to supply issues.
Investor Insight: AT&T versus Verizon: Who is Winning the iPhone 5 Launch?
Shares of Paychex (NASDAQ:PAYX) dropped almost 3 percent Tuesday morning, despite reporting positive earnings for its first quarter. Net income rose 2.8 percent to $153.1 million (42 cents per share), compared to $148.9 million (41 cents per share) a year earlier. Martin Mucci, president and chief executive officer, commented, “The first quarter has fiscal 2013 off to a good start with results meeting our expectations. Our client base continued to improve, checks per payroll continued to increase, and our client retention is near a historic high.”
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