The stock market had a down day Thursday amid a few disappointing earnings reports and a dip in crude. The S&P 500 fell 0.4% on the day, while the Dow Jones Industrial Average also declined by 0.4%.
Several companies are finishing off the week with moves spurred by earnings reports. That list includes AT&T Inc. (NYSE:T), Pandora Media Inc (NYSE:P) and Starbucks Corporation (NASDAQ:SBUX).
Here’s what you need to know:
AT&T Inc. (T)
T stock was dipping slightly after the telecom company posted revenue that fell short of expectations.
AT&T reported revenue of $40.52 billion, which was just slightly below the Wall Street average projection of $40.62 billion. However, earnings were in line with estimates at 72 cents per share on the quarter.
AT&T lost 49,000 television subscribers over the period thanks to migrations away from its old U-verse service, which makes up just 20% of the company’s TV consumers now. While AT&T’s DirecTV adds (342,000) weren’t enough to make up the entire deficit, the company still is excited about the prospects for the satellite TV division.
T shares are off about 1% heading into Friday’s trading day, but even with the dip, AT&T is having a breakneck 2016, with shares up nearly 25% for the year to date.
Starbucks Corporation (SBUX)
Friday looks like it’ll be a cold day for SBUX stock holders.
Starbucks shares are off a couple percent after the company’s revenues came in about $10 under the consensus estimate. SBUX raked in $5.34 billion in the three-month period on same-store sales growth of 4%, with the latter figure missing estimates too. Wall Street was hoping for 5.7% on that front.
Said CEO Howard Schultz: “(Starbucks has a) clear line of sight to returning our U.S. business to historic levels of comp sales growth which had been at or above 5% for the 25 consecutive quarters prior to Q3.”
Earnings of 49 cents per share simply met the consensus.
Moving forward, Starbucks will hope to offset increased costs from wage hikes with price hikes to its beverages, with the company expecting average increases of 1% on orders.
SBUX stock was off 2%.
Pandora Media Inc (P)
P stock is off 7% this morning after disappointing the Street on numerous fronts.
Revenues of $343 million were up 20% year-over-year, but shy of estimates for $351.6 million. An adjusted net loss of 12 cents actually was better than what analysts were predicting, but the overall net loss of $76.3 million was sharply off from last year’s $16.1 million.
Guidance for both Q3 and the full year came up short, too. Pandora is looking for sales of $360 million to $370 million in the third quarter, then $1.385 billion to $1.405 billion for the current fiscal year.
And active listeners were off from 79.4 million last year to 78.1 million.
Pandora’s dip follows a rise-and-slump on Thursday, sparked by news that Liberty Media Group (NASDAQ:LMCA) floated a bid for P, which was rejected by Pandora’s board.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
