The U.S. markets finished Thursday up, marking the fourth positive result in five days. That was thanks in part to sparkling earnings reports, as well as the labor market showing signs of getting tighter.
The Labor Department reported that jobless claims rose to 281,000, a bit more than last week, yet still lower than expected. In addition, the Commerce Department reported that wholesale trade data was up 0.3 and a tick above expectations, yet sales were still weak, keeping wholesale inventories lower.
The Dow Jones Industrial Average climbed 0.31%, the S&P 500 was up 0.45% and the Nasdaq gained 0.48%. Several stocks had big days, including Pier 1 Imports Inc (NYSE:PIR) and Walgreens Boots Alliance Inc (NASDAQ:WBA). Those two and MGM Resorts International (NYSE:MGM) finished Thursday as three of the day’s best stocks.
Walgreens Boots Alliance Inc (WBA)
WBA stock rose more than 5% after posting second-quarter earnings of $1.18 a share, a 21.6% improvement from a year ago, and well ahead of analysts’ estimates for 95 cents a share. However, revenue of $26.6 billion, though up 35.5% from last year, missed estimates of $27.7 billion.
Walgreens also announced that it’s restructuring by closing 200 stores by the end of 2017, part of a cost cutting plan to save $500 million, and yet also said they expect to open a number of other stores and will even consider more M&A activity. The 200 stores would be about 2% of all of Walgreens’ stores throughout the U.S., Puerto Rico and the U.S. Virgin Islands.
Today’s announcement was part of a three-year cost reduction strategy that was made public last August.
MGM Resorts International (MGM)
MGM stock was also a great bet for investors today, rallying more than 4% amid word that MGM and partner Infinity World Development Corp. will give shareholders a special dividend around April 30, totaling $400 million.
In addition, MGM will create an annual distribution policy of up to 35% of excess cash flow by CityCenter Holdings LLC, the joint venture between MGM and Infinity.
Other casino stocks, such as Las Vegas Sands Corp. (NYSE:LVS) and Wynn Resorts, Limited (NASDAQ:WYNN), traded 4% to 5% higher as well.
Pier 1 Imports Inc (PIR)
PIR stock bolted 9% higher today after reporting fourth-quarter earnings of 39 cents a share late Wednesday, above analysts’ estimates for 36 cents a share. Revenue of $543.6 million was 5.4% higher than a year ago, yet below the Street’s view of $548.71 million.
Despite beating EPS estimates, earnings still were down 2 cents per share year-over-year.
Another negative that failed to deter investors was that forward guidance for fiscal 2015 of 83 cents to 87 cents a share was also below analysts’ estimates of 90 cents a share.
Perhaps that was because PIR also raised its quarterly dividend from 6 cents to 7 cents a share. The next dividend payout will be May 6 to shareholders of record as of the close of trading on April 22. The ex-dividend date is April 20.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
