It was a backward day for the stock market as a down performance — sparked by concerns over consumer spending — halted its recent rally. The S&P 500 slumped 1% at Wednesday’s end, while the Dow Jones Industrial Average slipped 1.2%.
Several stocks were moving on earnings Thursday morning, including Jack in the Box Inc. (NASDAQ:JACK), but a pair of companies — Linn Energy LLC (NASDAQ:LINE) and Monsanto Company (NYSE:MON) were moving rapidly in opposite directions for nothing involving their quarterly results.
Jack in the Box Inc. (JACK)
Jack in the Box had a positive period as well, but it wasn’t just burgers that lifted the chain.
The restaurant posted earnings of 84 cents a share for its most recent fiscal quarter. Analysts expected earnings of 70 cents per share. Revenue also beat estimates by a notch, coming in at $361.2 million. Wall Street predicted revenue of $360 million for the quarter.
The company’s Qdoba division — a fast casual Mexican chain of restaurants — did especially well last quarter, with sales surging 9.5% year-over-year.
Jack in the Box itself revamped its menu earlier this year, changing some of its core items.
JACK shares were rocketing 11% higher in Thursday’s premarket trade.
Linn Energy LLC (LINE)
Linn Energy and its partner companies LinnCo LLC (LNCO) and Berry Petroleum Company have filed for Chapter 11 bankruptcy protection, sending shares hurtling even lower from already-penny-stock status.
According to Linn:
“LINN Energy, LLC (NASDAQ:LINE) (“LINN”), LinnCo, LLC (NASDAQ:LNCO) (“LinnCo”), and Berry Petroleum Company, LLC (“Berry,” and with LINN and LinnCo, the “Company”) announced today that the Company has entered into a Restructuring Support Agreement with holders of at least 66.67% by aggregate outstanding principal amounts of LINN’s Amended and Restated Credit Agreement, dated as of April 24, 2013, as amended, and Berry’s Second Amended and Restated Credit Agreement, dated as of November 15, 2010, as amended (collectively, the “Credit Facilities”).”
The companies are expected to continue operating as normal throughout the process.
Linn Energy, which collects oil and natural gas assets, was among the companies hardest hit by declining oil prices since summer 2014. From June of that year, shares had collapsed from above $32 to 30 cents before Thursday’s trade.
LINN and LNCO were each off more than 60% on the news.
Monsanto Company (MON)
Agrochemical giant Monsanto was racing ahead on Thursday morning on speculation that German pharma outfit Bayer AG (ADR) (BAYRY) — which also has a chemicals business — is considering a $40 billion buyout bid.
Details were thin, as the Bloomberg report was still developing.
This news came after a separate report saying that another German chemical company, BASF SE (ADR) (BASFY), was mulling a buyout as well.
Both companies were named in a March report as possible buyer candidates for Monsanto.
MON shares are set to open Thursday up more than 15%.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
