U.S. markets had difficulty staying above water today, finally toppling over after 3 p.m. as several of the second-quarter earnings reported today were below expectations on the revenue side. For example, Caterpillar Inc. (NYSE:CAT) not only missed on revenue, but also cut its sales forecast for the full year. CAT stock was down over 3% as a result.
Also in the news, the U.S. Labor Department announced that weekly jobless claims were 255,000 (PDF), the lowest level since 1973, and the June leading economic indicator index was up 0.6% to 123.6.
The Dow Jones Industrial Average fell 0.6%, while the S&P 500 shed 0.5% and the Nasdaq lost 0.4%.
There were, however, a few companies with better-than-expected earnings, and their stock rose because of it. Those who checked in as today’s best were General Motors Company (NYSE:GM), Under Armour Inc (NYSE:UA) and Raytheon Company (NYSE:RTN).
Here’s the complete report on how they did it.
General Motors Company (GM)
GM stock, up nearly 4%, had its best intraday performance in over two years after posting second-quarter earnings of $1.28 a share, besting the Street’s estimates by 21 cents. Revenue was $38.2 billion, but that was below the forecasts for $40.62 billion the Street wanted.
But GM stock rose anyway because analysts were happy about GM’s forward guidance. CEO Mary Barra said,
“We believe our results in the second half of the year will be even better than the first half, and we’re confident we will meet out 2016 targets.”
One of the main reasons cited for GM’s good performance was that sales margins were strong for both North America and China during the quarter. Finally, adding to the good news today was Itay Michaeli, an analyst with Citigroup, who maintained a “Buy” rating and a $50 price target on GM stock .
Under Armour Inc (UA)
UA stock also got a boost from a stellar earnings report. The maker of athletic clothing said second-quarter earnings were 7 cents a share, which beat the Street’s forecast of 5 cents a share. Revenue of $783.6 million was also ahead of Wall Street’s view of $761 million and well ahead of one year ago when revenue came in at $609.7 million.
UA also increased full year sales guidance from $3.78 billion to $3.84 billion. UA sales were particularly strong in its Stephen Curry shoes and training apparel.
The stock vaulted up more than 7% today on heavy volume of nearly 9 million shares.
Raytheon Company (RTN)
RTN also beat estimates today, sending RTN stock higher by over 6%. The defense-industry company reported net earnings of $1.65 a share, 6 cents above last year, and above the consensus of $1.62 a share.
In addition, revenue of $5.8 billion was 3% above a year ago and higher than the Street’s view of $5.45 billion.
Raytheon also cited its purchase of cybersecurity firm Websense as one of the main reasons for its improved earnings, and raised its 2015 revenue target from $22.7 billion to $23.2 billion, up from earlier guidance of $22.3 billion to $22.8 billion.
It looks like RTN, which had struggled thus far in 2015, has better fortunes ahead.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
