Canada Goose Loses Flight on Earnings Warning By Investing.com


© Reuters.

Investing.com – Canada Goose (NYSE:) had its feathers ruffled after an earnings call on Wednesday, as the retailer warned that recent protests in Hong Kong will have a significant impact on the current quarter.

Shares of Canada Goose fell 10.4% in midday trade.

Wholesale revenue is also expected to decrease in fiscal third-quarter due to the timing of winter orders, management said on the call.

The company reported a strong beat on the top and bottom lines, as its sales rose in Asia. came in at $0.43 on $222.2 million in revenue, compared to expectations for EPS of $0.32 on $201.3 million in revenue, according to data from Investing.com.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



‘Lion King’ lifts Disney earnings as streaming costs stay under budget


(Reuters) – Walt Disney Co’s (DIS.N) popular theme parks and a remake of “The Lion King” pushed earnings past Wall Street targets on Thursday, and the company spent less than it had projected on its big plunge into streaming entertainment.

Shares of Disney rose more than 5% to $140.77 in after-hours trading.

Disney is trying to transition from a cable TV leader to a powerhouse in the crowded streaming video market dominated by Netflix Inc (NFLX.O). The family-friendly digital entertainment service, Disney+, is set to debut on Tuesday.

Excluding certain items, Disney earned $1.07 per share for the quarter that ended in September, above average analyst estimates of 95 cents per share, according to IBES data from Refinitiv.

Disney+ will initially stream in the United States, Canada and the Netherlands. On Nov. 19, it will debut in Australia and New Zealand, followed by several countries in western Europe on March 31, Chief Executive Bob Iger said.

“We’re making a huge statement about the future of media and entertainment and our continued ability to thrive in this new era,” Iger told analysts on a conference call.

The Disney+ app will be accessible via a wide range of smart TVs, mobile phones and streaming devices, including Amazon.com Inc’s (AMZN.O) Fire TV devices and Samsung Electronics Co Ltd (005930.KS) and LG Electronics Inc (066570.KS) products, Iger said.

FILE PHOTO: The entrance to Walt Disney studios is seen in Burbank, California, U.S. August 6, 2018. REUTERS/Lucy Nicholson/File Photo

The company is spending heavily to compete for digital viewers.

Disney’s direct-to-consumer and international unit, which also includes ESPN+ and Hulu, reported an operating loss of $740 million from July through September, up from $340 million the previous year, but less than the $900 million that Disney had forecast.

Seeking a broad audience of all ages, Disney+ will offer a deep library of TV shows and movies from Disney, Pixar Animation, Marvel Studios, the “Star Wars” franchise and the National Geographic Channel, plus original programming such as a new “High School Musical” series and a remake of “Lady and the Tramp.” It will cost $7 per month, less than the $13 for Netflix’s most popular plan.

Edgier adult programming will go to Hulu, including shows from FX Networks starting in March, Iger said. FX on Hulu will feature every season of more than 40 FX original series spanning the past 17 years, such as “Fargo” and “American Horror Story.”

Disney faces several competitors including a just-launched service from Apple Inc (AAPL.O) and offerings from AT&T Inc’s (T.N) WarnerMedia and Comcast Corp (CMCSA.O) next year.

Distribution agreements with Apple, Samsung and others “show they understand this is an ecosystem, and even with all their market power, they can’t go it alone,” said Forrester analyst Jim Nail.

For the just-ended quarter, the theme parks and consumer products unit reported a 17% rise in operating income to $1.4 billion, driven by sales of “Frozen” and “Toy Story” merchandise and higher guest spending at Disneyland in California.

Slideshow (2 Images)

The movie studio benefited from remakes of “The Lion King” and “Aladdin” plus Pixar sequel “Toy Story 4.” Profit at the division jumped 79% to nearly $1.1 billion.

The company’s media networks division posted a 3% decrease in operating income to $1.8 billion, Disney said. Sports network ESPN experienced higher programming, production and marketing costs and now has 3.5 million subscribers.

Overall revenue rose 34% to $19.10 billion, edging past analysts’ average estimate of $19.05 billion.

Reporting by Neha Malara in Bengaluru and Lisa Richwine in Culver City, California; Editing by Sriraj Kalluvila and Lisa Shumaker



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Exxon, Chevron earnings fall on lower oil and gas prices By Reuters



By Jennifer Hiller

HOUSTON (Reuters) – Exxon Mobil Corp (N:) and Chevron Corp (N:) on Friday posted sharply lower quarterly results despite increases in oil and gas production as lower energy prices soured results for most oil majors.

The two U.S. oil majors credited higher production in the top U.S. shale field for similar 3% volume increases, while warning that sizeable cost overruns at a giant oil field in Kazakhstan, where both are partners, would affect future earnings.

Results mirrored weaker quarterly earnings at BP Plc (L:) and Royal Dutch Shell Plc (L:), which indicated they might delay dividend increases or a buyback program due if current low prices continue.

In the third quarter, global benchmark Brent crude () fell 8.7%, the worst quarterly drop since the fourth quarter of 2018, while U.S. crude () dropped 7.5% as concerns about the trade war between the United States and China plunged global economic growth to its lowest levels in a decade.

Investors have fled the energy sector in recent years due to returns that significantly lag market indexes. Exxon’s share performance in the last three years was down 6.9% while Chevron’s rose 20.4%, both well below the 44.6% gain in Standard & Poor’s 500 index ().

Exxon’s profit was nearly halved to $3.17 billion, or 75 cents per share, beating analysts’ recently reduced estimate of 67 cents a share, according to Refinitiv IBES. The results included a favorable tax impact of 7 cents a share. Operating profits in each of Exxon’s major businesses fell compared with the same period a year ago.

Chevron’s earnings fell 36% to $2.58 billion, or $1.36 per share, in the quarter. Excluding one-time charges and foreign currency gains, the company said it would have earned $1.55 per share. Analysts had expected earnings of $1.45 cents per share.

The two are partners in the giant Tengiz oilfield in Kazakstan, where the operator, Chevron, said on Friday that overruns are expected to balloon project expenses by 25% to $45.2 billion.

“If you take away the initial contingencies that they have baked in, it’s almost a 50% cost increase to the project,” said Anish Kapadia, a director at London-based Palissy Advisors.

In morning trading, Exxon shares were up 2.1% at $69 while Chevron’s were up 3 cents at $116.19.

Exxon and Chevron are in a race in the Permian Basin, the top U.S. shale field, to reach 1 million barrels per day of production.

Chevron’s Permian production rose 35% from the same period a year ago to 455,000 barrels of oil and gas daily, while Exxon’s daily output reached 293,0000 barrels, up more than 70% in the last year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Wall Street slips as weak economic data offsets earnings strength


NEW YORK (Reuters) – Wall Street lost ground on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter earnings reports.

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid

Technology shares, led by Microsoft Inc (MSFT.O), weighed heaviest, pulling all three major U.S. stock averages into the red.

U.S. retail sales contracted in September for the first time in seven months, according to the Commerce Department, in a sign that cracks might be spreading from the troubled manufacturing sector to the broader economy.

“This is perhaps the first indication that the consumer side of the economy is showing signs of stress and perhaps pulling back,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “The consumer has been looked at as the savior of this economy and this data comes out and it’s rather shocking.”

U.S.-China trade uncertainties increased after the U.S. House of Representatives riled Beijing by passing pro-democracy legislation in support of Hong Kong.

President Donald Trump said he would probably not sign any trade deal before he meets with Chinese President Xi Jinping at the upcoming APEC Forum in Chile, but said a partial trade deal was being formalized.

“It surprises us that the market isn’t reacting more to the negative issues,” Ghriskey added. “Part of that is the expectation that the Fed is going to lower rates at the end of October and that companies may surprise to the upside like they did in first second quarters.”

Analysts currently expect S&P 500 third-quarter earnings to fall by 3%, which would mark the first year-on-year contraction since the earnings recession that ended in 2016.

However, of the 43 S&P 500 companies to have posted third-quarter results so far, 86% have beaten expectations.

Bank of America (BAC.N) rose 1.5% after posting its third-quarter profit beat due to growth in advisory fees and loan book expansion.

United Airlines (UAL.O) advanced 1.9% after the airline beat quarterly profit estimates and increased its 2019 guidance.

The Dow Jones Industrial Average .DJI fell 22.82 points, or 0.08%, to 27,001.98, the S&P 500 .SPX lost 5.99 points, or 0.20%, to 2,989.69 and the Nasdaq Composite .IXIC dropped 24.52 points, or 0.3%, to 8,124.18.

Of the 11 major sectors in the S&P 500, six closed in negative territory, with energy .SPNY and tech .SPLRCT suffering the largest percentage losses.

In other stocks news, Eli Lilly & Co (LLY.N) dropped 1.6% in the wake of a late-stage study that showed its experimental pancreatic cancer treatment failed to meet the overall survival goal.

Drug distributors McKesson (MCK.N), AmerisourceBergen (ABC.N) and Cardinal Health (CAH.N) rose between 2% and 5% following a report that they were in talks with state and local governments to settle thousands of opioid lawsuits for $18 billion.

General Motors (GM.N) gained 1.1% after the automaker reached a tentative labor deal with the United Auto Workers union.

Netflix Inc (NFLX.O) shares jumped more than 10% in post-market trading after posting quarterly results.

Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.07-to-1 ratio favored advancers.

The S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq Composite recorded 35 new highs and 62 new lows.

Volume on U.S. exchanges was 6.06 billion shares, compared with the 6.79 billion average over the last 20 trading days.

Reporting by Stephen Culp in New York; Editing by Matthew Lewis



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Wall Street Week Ahead: Bruised U.S. banks expected to report third quarter earnings decline


NEW YORK (Reuters) – The biggest U.S. banks are expected to kick off the earnings season on a sour note next week due to falling interest rates, which may have pressured net interest margins enough to cause the sector’s first year-over-year earnings per share decline in three years.

While strength in mortgage banking and cheap valuations could provide support to the S&P 500 bank index .SPXBK, its performance depends on what reassurance executives provide on credit conditions, the outlook for loan growth and their ability to reduce deposit costs during their conference calls.

Tuesday brings third quarter profit reports from Citigroup Inc (C.N), Wells Fargo and Co (WFC.N), JPMorgan Chase & Co (JPM.N), and Goldman Sachs (GS.N). Bank of America (BAC.N) reports on Wednesday.

The biggest U.S. banks will report a 1.2% decline in third-quarter earnings, while revenue is seen rising 0.9%, according to data aggregated by Refinitiv analyst David Aurelio. This would be the first profit decline since the same quarter in 2016, according to data from Factset.

“Overall it’s shaping up to be a pretty challenging quarter because of the net interest rate environment,” said Fred Cannon, director of research for Keefe, Bruyette & Woods in New York, citing the flattening and temporary inversion of the U.S. Treasury 2-year/10-year yield curve during the quarter.

Bank profits depend heavily on net interest income, or the difference between the rate they charge for long-term loans and the rate they pay for short-term borrowing.

Executives from Citi, Wells Fargo and JPMorgan all cut their full-year forecasts for net interest income last month, citing macroeconomic concerns.

Part of the problem is U.S. Federal Reserve interest rate cuts in July and September. And futures traders are betting on more Fed rate cuts going forward, including one in October.

As a result, bank investors will listen for executive reassurance on the net interest margin outlook and their ability to mitigate weakness, said Manulife Investment Management’s Lisa Welch, who manages the John Hancock Regional Bank Fund.

One offset to lower lending profits would be a reduction in interest rates banks pay their customers for deposits, as those rates rose while the Fed was hiking interest rates.

“There’s going to be a lot of questions on how fast banks are able to bring down their deposit costs as loan yields are coming down,” said Welch, adding that she does not expect deposit costs “to come down as quickly as loan yields have fallen.”

Mortgages may be another silver lining to lower rates in third-quarter numbers and future quarters as borrowers avail of cheaper rates. Refinancing, which accounts for most mortgage applications, has more than doubled from a year ago, according to Mortgage Bankers Association data released on Wednesday.

“With rates being lower, we think mortgage activity will be very strong,” said Welch, pointing to First Horizon (FHN.N) as one bank that could benefit from mortgage demand.

Bank of America and Wells Fargo should also benefit, according to KBW’s Cannon. To cope with rising demand, Wells Fargo is boosting its mortgage team, according to a memo seen by Reuters this week.

But investors will also be on high alert for signs slowing U.S. economic growth is hurting debt repayments, said Mike Cronin, investment manager at Aberdeen Standard Investments.

“Given that we’ve had some economic data that’s been a little weaker is there any trend in credit costs that raises concerns going into 2020?” said Cronin.

So far, strong credit quality and bank balance sheets have reassured KBW’s Cannon, who is neutral on the sector. “But if we start to see meaningful credit deterioration that would change our minds about how we think about the banks,” he said.

Cannon did not recommend buying banks going into earnings season due to the likelihood “consensus estimates come down in the quarter.” But on the plus side, he said, valuations do seem to reflect an expectation for further weakness.

(GRAPHIC – S&P bank index valuation vs S&P 500: here)

The S&P Bank index has gained 14% year-to-date, compared with a 16.5% advance for the S&P 500. But the sector’s trading multiple of 10.2 times earnings estimates for the next 12 months compares well to its historical average of 12.6 and the benchmark S&P’s current trading multiple of 16.4.

Bank valuations look attractive to Manulife’s Welch, who does not expect a recession any time soon.

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 9, 2019. REUTERS/Brendan McDermid

“If we’re wrong and go into a mild recession we think the banks will hold up much better” than going into financial crisis, she said, citing underwriting improvements.

But, after a spate of weak manufacturing data, Aberdeen Standard’s Cronin is looking for data to stabilize before recommending the sector.

“There is a lot of downside priced into the stocks but overall I’d still say I’m not really positive on the group just yet,” he said.

Reporting by Sinéad Carew with additional reporting from Imani Moise and Elizabeth Dilts Marshall; Editing by Alden Bentley and Rosalba O’Brien



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Capital spending outlook another worry ahead of earnings By Reuters


© Reuters. FILE PHOTO: A Wall St. street sign is seen near the NYSE in New YorkNYSE in New York

By Caroline Valetkevitch

NEW YORK (Reuters) – Investors are preparing for more cautious capital investment outlooks from U.S. companies as worries mount heading into earnings season about the possibility of an economic recession.

Capital expenditure increases have been weaker than last year, when corporate tax cuts helped to bolster spending, and some strategists say they may even fall short of Wall Street’s expectations given the concerns about the economy and a prolonged trade war between the United States and China.

Less spending on technology, machinery and other equipment would suggest corporate executives are less confident in the economy than they had been, another potential negative for the stock market, which has fallen this week amid a series of weak economic reports.

Capital expenditures are expected to have increased just 3.0% in the third quarter from a year ago, which would be the lowest since the second quarter of 2017, when capex declined slightly, according to data based on analysts’ estimates compiled by Refinitiv’s research senior manager, David Aurelio.

That estimate drops to 1.1% in the fourth quarter, and year-over-year declines are projected in some quarters of 2020.

“It’s very likely that capex spending is going to be below expectations,” said Kristina Hooper, chief global market strategist at Invesco in New York. “We are in a state of heightened economic policy uncertainty. That tamps down business investment.”

Strategists said spending plans will be of particular interest as S&P 500 () companies discuss their results for the third quarter in the weeks ahead.

The reporting period begins with big banks including JPMorgan Chase (N:) and others reporting on Oct. 15.

Results overall are expected to be relatively weak, with analysts forecasting earnings for S&P 500 companies to have declined 2.7% in the third quarter from a year ago, based on Refinitiv’s data.

Recent dismal economic indicators have fueled concerns that the United States was flirting with a recession.

Upbeat jobs data offered some relief for investors on Friday, but it came on the heels of a report this week showing manufacturing activity plunged to a more than 10-year trough in September. Other data showed U.S. services sector activity slowed to a three-year low in September.

“There is a correlation between CEO confidence and capex. And right now we’ve seen CEO confidence decrease, so again it’s going to be a challenging environment for companies to go ahead and spend,” said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta.

While the trade war has eroded business confidence, easing monetary policy is expected to help because it reduces borrowing costs for businesses.

The U.S. central bank cut rates last month after reducing borrowing costs in July for the first time since 2008. Bets the Federal Reserve will cut rates later this month by 25 basis points were at about 77% on Friday, compared to 39.6% on Monday, according to CME Group’s FedWatch tool.

“This talk of whether or not we’re going into a recession, that enforces prudence” by companies, said Quincy Krosby, chief market strategist at Prudential Financial (NYSE:), based in Newark, New Jersey. “Ultimately what they’re worried about is revenue growth.”



More pain for Europe Inc as earnings drought seen spilling over into 2020 By Reuters



By Thyagaraju Adinarayan and Joice Alves

LONDON (Reuters) – With markets taking fright again this week over trade tariffs and a faltering global economy, investors are braced for weak third quarter results in Europe and high expectations going forward could come crashing down to earth.

There have been a slew of profit warnings in recent weeks which have stirred worries that the earnings slowdown will spill over into next year as companies grapple with weaker economic growth stemming from trade spats and the uncertainty caused by the UK’s delayed exit from the European Union.

Markets were rattled this week by U.S. manufacturing and services data that fell below expectations, a move by Washington to hit European products with tariffs and worries over Brexit.

It could be the worst week in a year for the pan European STOXX 600 () while the euro-zone benchmark () is heading for its biggest weekly fall in two months.

After falling into a so-called corporate recession in the second quarter after two straight quarters of profit decline, European companies are expected to report in the coming weeks a 2.2% drop in profits in the third quarter, their worst quarter in three years, according to Refinitiv I/B/E/S.

While 4% earnings growth is seen as achievable for the United States in the fourth-quarter, interviews with investors, analysts and strategists and companies paint a different picture for Europe for the remaining months of 2019 and into next year.

(GRAPHIC – U.S. versus Europe earnings growth: https://fingfx.thomsonreuters.com/gfx/buzzifr/14/7815/7815/Pasted%20Image.jpg)

Companies are taking measures such as cutting costs to shore up profits, but a harder-to-fix drop in demand for products is expected to be evident in company revenues for the July-September quarter, which are seen falling 0.3%, the first quarterly turnover drop since early 2018.

There is room for much disappointment given that consensus profit estimates for the fourth quarter and 2020 are still high at around 10% growth and analysts say expectations could be brought back down to reality over the coming months.

“The big hurdle for this year would be the fourth quarter, not the third quarter,” said Fabio Di Giansante, head of large-cap European equities at Europe’s top asset manager Amundi with 1.43 trillion euros ($1.6 trillion) in assets under management.

“I would expect more warnings after last week,” Di Giansante said, following the earnings downgrades by Pearson (L:), Imperial Brands (L:), British Airways-owner IAG (L:) and Carnival Corp (N:) that knocked billions of pounds off their market value.

At best, Di Giansante expects profit growth to flatline in 2020 while UBS has pegged a 4% drop.

(GRAPHIC – Earnings downgrades: https://fingfx.thomsonreuters.com/gfx/buzzifr/14/7529/7529/Pasted%20Image.jpg)

ROTATION INTO VALUE

A shift by investors into beaten-down stocks that look value for money in September has caught some investors off-guard, who were heavily invested in momentum stocks – rapidly expanding companies – but ahead of the results season value stocks are likely to be seen as a shelter, giving less of a shock if a company misses estimates.

MSCI global basket of value stocks rose 4%, while the momentum stocks slipped 1% last month. Before the rotation, momentum stocks had surged 20% as of August-end, while value stocks were up just 7%.

Di Giansante is among those that have sought safety in cheaper stocks.

“In a normal world, if you’re cheap and you miss, in theory you should have more downside protection, but that hasn’t been the case in the last year-and-a-half,” he added.

For these stocks, “you need to see an inflection point around the corner, if you keep missing, it is postponed”.

DEJA VU?

The final quarter of 2018 also started with major stock indexes close to current levels and earnings growth expectations for the year ahead around 10%.

(GRAPHIC – 2020 earnings growth: https://fingfx.thomsonreuters.com/gfx/buzzifr/14/7528/7528/Pasted%20Image.jpg)

Analysts ended up slashing earnings growth estimates for 2019 to low single digits and the toxic mix of an uncertain macro environment and earnings downgrades led to one of the steepest sell offs in stock market history in late 2018.

But this time could be different, some market experts said, as central banks are more dovish now, providing monetary stimulus and interest rate cuts that have supported stock markets.

Equity strategists do not expect 2020 earnings to be as bad as 2019.

“You start with 10% … the question is not where you start, but where you’re going to end up,” Edmund Shing, global head of equity derivates strategy at BNP Paribas (PA:) said. He expects earnings to rise 6% next year.

Aside from the battering stocks received last week, the STOXX 600 index remains on track for its best annual performance in six years.



Europe third-quarter earnings outlook deteriorates as trade war, Brexit bite By Reuters



LONDON (Reuters) – European companies are heading for their worst quarterly earnings in three years as revenue drops for the first time since early 2018, according to the latest Refinitiv data, underscoring concerns about Europe Inc’s deteriorating health.

Companies listed on the STOXX 600 () regional index are expected to report a 2.2% drop in third-quarter EPS, worse than the 1.9% drop expected a week ago and the biggest quarterly fall since Q3 2016, according to I/B/E/S Refinitiv.

Consensus now calls for a drop in revenue of 0.3% in the quarter, which would be the first since Q1 2018, but slightly better than the 0.4% fall expected last week.

Companies are already suffering a corporate recession after earnings declined in the previous two quarters as the U.S.-China trade war and uncertainty over Brexit crimp demand and Germany, the region’s largest economy, at risk of falling into recession.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Take-Two Earnings Misses, but Revenues Beat in Q1 By Investing.com


© Reuters. Take-Two Lifts Guidance After Delivering Mixed Earnings in Q1

Investing.com – Take-Two (NASDAQ:) upgraded its full-year guidance after reporting mixed first-quarter results on Monday as earnings missed, but revenue beat analysts’ forecasts.

The video-game company reported per share of $0.41 on revenue of $422.2 million. Analysts polled by Investing.com expected earnings per share of $0.79 on revenue of $357.24 million. That compared to earnings per share of $0.13 on revenue of $288.33 million in the same period a year earlier. The company had reported earnings per share of $0.78 on revenue of $488.41 million in the previous quarter.

Net Bookings – defined as the net amount of products and services sold digitally or sold-in physically – grew 46% to $422.2 million, as compared to $288.3 million during last year’s fiscal first quarter.

The largest contributors to net bookings in the fiscal first quarter 2020 were Grand Theft Auto Online and Grand Theft Auto V, NBA 2K19, the Borderlands franchise, Red Dead Redemption 2 and Red Dead Online, Social Point’s mobile offerings, WWE SuperCard and WWE 2K19, and Sid Meier’s Civilization VI.

The company raised guidance for FY20, predicting earnings in the range of $3.71 to $3.96 a share, up from $3.39 to $3.65 a share, above estimates of $3.61 on revenue of $2.6 to $2.7 billion, up from $2.5 to $2.6 billion, in-line with estimates of $2.68 billion.

The earnings report comes as a sea of red washed over video games stocks on Monday after President Trump blamed violent video games in remarks following the weekend’s mass shootings

Take-Two shares lost 0.07% to trade at $115.30 in after-hours trade following the report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Wall Street nears record high on upbeat earnings, GDP data


(Reuters) – U.S. stocks inched closer to record levels on Friday, boosted by robust earnings from Google-owner Alphabet and Intel, and data that showed the domestic economy slowed lesser than expected in the second quarter.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 25, 2019. REUTERS/Brendan McDermid

The Commerce Department said GDP increased at a 2.1% annualized rate in the second quarter, higher than a 1.8% rate that economists polled by Reuters forecast.

Hopes that the Federal Reserve will cut rates by at least 25 basis points at its policy meeting at the end of this month have powered a solid run in stocks this month, helping Wall Street scale record levels.

The S&P 500 .SPX and Nasdaq .IXIC indexes are now within striking distance of another all time high.

“This is just what the market needed, not so soft that the economy is slowing down precipitously and not so strong that the Fed is going to reverse course,” said Art Hogan, chief market strategist at National Securities in New York.

“We expected bad earnings and bad GDP numbers, but an upside on both is something markets are going to embrace today.”

Alphabet Inc (GOOGL.O) jumped 11.3%, the most on the S&P 500 index, after its quarterly results beat estimates, easing investor concerns about growth challenges faced by its Google advertising business.

Twitter Inc (TWTR.N) jumped 8.3% after it posted better-than-expected second-quarter revenue and an uptick in daily users who see advertisements on the site.

Their upbeat earnings pushed the communication services sector .SPLRCL up 3.22%, the most among S&P sectors.

At 9:45 a.m. ET, the Dow Jones Industrial Average .DJI was up 33.77 points, or 0.12%, at 27,174.75, the S&P 500 .SPX was up 14.23 points, or 0.47%, at 3,017.90. The Nasdaq Composite .IXIC was up 77.56 points, or 0.94%, at 8,316.11.

Two weeks into the second-quarter earnings season, about 75% of the 185 S&P 500 companies that have reported so far have topped profit estimates, according to Refinitiv data.

Among other stocks, McDonald’s Corp (MCD.N) jumped as much as 2.1% to a record high after beating quarterly sales expectations at established U.S. restaurants.

Intel Corp (INTC.O) rose 1% after the chipmaker gave an upbeat current-quarter forecast and raised its full-year revenue guidance, allaying concerns about a global chip slowdown and curbs on U.S. sales to China’s Huawei Technologies Co HWT.UL.

A decliner was Amazon.com Inc (AMZN.O), which fell 2.3% after the online retailer reported its first profit miss in two years and said income would slump in the current quarter.

Advancing issues outnumbered decliners by a 1.97-to-1 ratio on the NYSE and a 2.37-to-1 ratio on the Nasdaq

The S&P index recorded 25 new 52-week highs and two new lows, while the Nasdaq recorded 59 new highs and 33 new lows.

Reporting by Amy Caren Daniel and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur



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