Radar Movers: Jeff Bezos Spends $250 Million on The Washington Post, Apple Jumps 1.5%
Mcdermott International (NYSE:MDR) shares plunged almost 15 percent in late afternoon trading. The engineering company reported a second-quarter loss of 63 cents per share on revenue of $647 million. Analysts expected earnings of 3 cents per share on revenue of $758 million. “As a management team, we are taking immediate and decisive actions to correct the weakness we have experienced in our project bidding and execution,” said Stephen M. Johnson, president and chief executive officer.
Shares of The Washington Post (NYSE:WPO) jumped more than 4 percent higher in late afternoon hours. The company announced that it has signed a deal to sell its newspaper publishing business to Jeff Bezos, Amazon’s (NASDAQ:AMZN) CEO. “I understand the critical role the Post plays in Washington, DC and our nation, and the Post’s values will not change,” said Mr. Bezos. “Our duty to readers will continue to be the heart of the Post, and I am very optimistic about the future.” The purchase price is $250 million.
American Eagle Outfitters (NYSE:AEO) crashed 18 percent in late afternoon trading. The retailer slashed its earnings guidance for the second quarter to 10 cents per share, well below Wall Street’s estimate of 21 cents per share. Robert Hanson, chief executive officer stated, “We are not at all happy with our second quarter results, which were impacted primarily by a disappointing performance of our AEO women’s assortment and weak traffic. Results were exacerbated by a highly promotional retail environment, which intensified over the course of July. Within this context, we increased the depth and breadth of markdowns; these actions have enabled us to achieve a clean inventory position moving into the third quarter.”
Despite a broad pullback in stocks and some bearish tablet data, shares of Apple (NASDAQ:AAPL) increased 1.5 percent on Monday and continued to edge higher in late afternoon trading. IDC reported that Google’s (NASDAQ:GOOG) Android took the cake for market share in the second quarter, growing from 38 percent in the second quarter of 2012 to 62.6 percent a year later. Apple took the No. 2 spot with a market share of 32.5 percent, which fell from 60.3 percent a year earlier. Shares of Apple are now at their highest level since February.
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