Lumentum stock slumps after earnings beat expectations but outlook was downbeat
on August 16, 2022 at 11:45 am
Shares of Lumentum Holdings Inc. slumped 8.5% in premarket trading Tuesday, after the optical networking products company reported fiscal fourth-quarter earnings that beat expectations but provided a downbeat profit outlook for the current quarter. Net income for the quarter to July 2 rose to $34.7 million, or 49 cents a share, from $21.5 million, or 28 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.47 topped the FactSet consensus of $1.33. Revenue grew 7.7% to $422.1 million, above the FactSet consensus of $418.0 million, as optical communications revenue increased 4.4% to $390.9 million and lasers revenue rose 38.8% to $51.2 million. For the first quarter, the company expects adjusted EPS of $1.45 to $1.70, below the FactSet consensus of $1.81, and expects revenue of $490 million to $520 million, which surrounds expectations of $491 million. The stock, which closed Monday at a 4 1/2-month high, has run up 10.3% over the past three months through Monday, while the S&P 500 has gained 7.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
World Wrestling Entertainment beats Q2 estimates, re-states financials after Vince McMahon probe
on August 16, 2022 at 11:25 am
World Wrestling Entertainment Inc. said Tuesday its second-quarter net income rose to $49 million, or 58 cents a share, from $29.2 million, or 34 cents a share in the year-ago quarter. Revenue grew to $328.2 million from $265.6 million in the year-ago period. Analysts were expecting earnings of 57 cents a share and revenue of $324.4 million, according to a FactSet survey. The company also said it wrapped up a probe of its former CEO Vince McMahon, who resigned on July 22. A special committee identified $19.6 million in unrecorded expenses, which will be paid by McMahon. "The company has determined that, while the amount of unrecorded expenses was not material in any individual period in which the unrecorded expenses arose, the aggregate amount of unrecorded expenses would be material if recorded entirely in the second quarter of 2022," the company said. WWE said it's revising its previously issued financial statements to record the unrecorded expenses for the years ended 2019, 2020 and 2021, as well as the first quarter of 2021 and 2022. Shares of WWE rose 0.5% in premarket trades.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Merck and Orna Therapeutics to collaborate in deal entitling Orna to up to $3.5 billion in milestone payments
on August 16, 2022 at 11:01 am
Merck and privately held Orna Therapeutics said Tuesday they have agreed to collaborate to discover and develop programs, including vaccines and therapeutics, in the fields of infectious disease and oncology. Under the terms of the deal, Merck will make an upfront payment of $150 million, to be expensed in the third quarter and included in non-GAAP results. Orna will be eligible to receive up to $3.5 billion in milestone payments on reaching certain regulatory and sales goals, as well as royalties on any approved products. "Orna will retain rights to its oRNA-LNP technology platform and will continue to advance other wholly owned programs in areas such as oncology and genetic disease," the companies said in a joint statement. "Merck will also invest $100 million of equity in Orna's recently completed Series B financing round." Merck shares were slightly lower premarket, but have gained 18% in the year to date, outperforming the S&P 500 , which has fallen 10%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Home Depot profit and record sales beat expectations and full-year outlook affirmed, but stock turns lower
on August 16, 2022 at 10:32 am
Shares of Home Depot Inc. erased earlier gains to drop 2.5% in premarket trading Tuesday, even after the home improvement retail giant reported fiscal second-quarter profit, record total sales and same-store sales that all rose above expectations and affirmed its full-year outlook. Net income for the quarter to July 31 increased to $5.17 billion, or $5.05 a share, from $4.81 billion, or $4.53 a share, in the same period a year ago, to beat the FactSet consensus for earnings per share of $4.95. Sales grew 6.5% to $43.79 billion, above the FactSet consensus of $43.36 billion. Overall same-store sales increased 5.8% to beat the FactSet consensus for 4.9% growth, and same-store sales in the U.S. rose 5.4% to top expectations of a 4.8% rise. Cost of sales rose a little more than sales, increasing 5.5% to $29.31 billion as gross margin contracted to 33.1% from 33.2%. "Our performance reflects continued strength in demand for home improvement projects," said Chief Executive Ted Decker. For fiscal 2022, the company affirmed its guidance for sales growth of approximately 3.0%, and its EPS growth outlook of mid-single digits percentage range. The stock has gained 6.3% over the past three months through Monday, while the Dow Jones Industrial Average has advanced 5.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Coronavirus tally: North Carolina Gov. Roy Cooper lifts COVID state of emergency
on August 16, 2022 at 10:20 am
North Carolina Gov. Roy Cooper has lifted the state of emergency that gave its government extraordinary powers to address the COVID pandemic, the Associated Press reported. The Democratic governor announced last month that he would lift the emergency order Monday, citing provisions in the latest state budget bill he signed that would allow health care providers and regulators to keep responding robustly to the virus. His termination order said the emergency ends late Monday night. The move comes as U.S. known cases of COVID are continuing to ease based on numbers provided by a New York Times tracker, although the true tally is likely higher given how many people are testing at home, where the data are not being collected. The daily average for new cases stood at 99,832 on Monday, according to a New York Times tracker, down 18% from two weeks ago. Cases are falling in almost every state and are down 20% or more in more than a dozen states. The daily average for hospitalizations was down 4% at 42,072, while the daily average for deaths is up 10% to 489. Globally, the confirmed case tally rose above 591.2 million on Tuesday, according to data aggregated by Johns 2Hopkins, while the death toll is above 6.43 million with the U.S. leading the world with 93 million cases and 1,037,462 deaths.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.