Earnings Swing Into Full Gear: Monday’s IP Market Recap

by Marc Bastow | July 22, 2013 4:58 pm

Earnings Swing Into Full Gear: Monday’s IP Market Recap

IPMarketRecap Earnings Swing Into Full Gear: Monday's IP Market Recap [1]McDonald’s (MCD[2]) and Kimberly-Clark (KMB[3]) slipped at the starting blocks of a week that will see 160 of the S&P 500′s components release earnings this week, though the broader indices still managed to move ahead for the day.

The Nasdaq led the way with 0.36% gains to finish at 3600.39. The S&P 500 rode a 0.2% uptick to close at a new all-time high high, closing at 1695.53, while the Dow Jones Industrial Average eked out a fractional gain, closing at 15545.55.

In early-week earnings news, McDonald’s (MCD[2]) announced a rise in both revenue and profit, but not enough to meet Street expectations. Specifically, MCD posted adjusted earnings of $1.38 per share, up 4% year-over-year, on a 2% gain in revenues to $7.08 billion. MCD fell around 3% to mark the largest loss in the Dow Jones.

Personal care products maker Kimberly-Clark (KMB[3]) also saw shares decline on the day, dropping nearly 2% after reporting strong second-quarter earnings that beat Street estimates, but revenue figures that fell flat on a year-to-year basis.

A few days after rival Mattel (MAT[4]) was crushed on earnings, Hasbro (HAS[5]) announced a 16% decline in profits for its second quarter, but still finished up more than 3% amid news of a two-year extension of its merchandising rights to Disney’s (DIS[6]) Marvel characters.

Taiwanese chip maker Himax (HIMX[7]) was one of the day’s biggest movers, soaring more than 30% after announcing Google (GOOG[8]) would take a 6% stake in the company that creates the chips for Google Project Glass. GOOG ticked up 1%.

In corporate news, Yahoo (YHOO[9]) fell over 4% after announcing it would buy back 40 million of its shares[10] from Third Point Capital at Friday’s closing price of $29.11, though Third Point will continue to own a 2% stake (20 million shares) in the company. Three Third Point board members, including CEO Dan Loeb, will step down from Yahoo’s board.

After the bell, Netflix (NFLX[11]) announced flat Q2 revenues of $1.07 billion to meet analyst estimates, earnings per share of 49 cents that came in 9 cents above the consensus, and 600,000 new subscribers. Nonetheless, NFLX was trading down nearly 7% in after-hours trading.

Notable earnings releases for Tuesday include Apple (AAPL[12]) and AT&T (T[13]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL and YHOO.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  3. KMB: http://studio-5.financialcontent.com/investplace/quote?Symbol=KMB
  4. MAT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MAT
  5. HAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=HAS
  6. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  7. HIMX: http://studio-5.financialcontent.com/investplace/quote?Symbol=HIMX
  8. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  9. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  10. buy back 40 million of its shares: http://investorplace.com/2013/07/yahoo-to-buy-back-40m-shares-from-hedge-fund/
  11. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  12. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  13. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  14. PETS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PETS
  15. JASO: http://studio-5.financialcontent.com/investplace/quote?Symbol=JASO
  16. NIHD: http://studio-5.financialcontent.com/investplace/quote?Symbol=NIHD
  17. SKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SKS
  18. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  19. AMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMD

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