3 Stocks to Watch on Thursday: Kohl’s Corporation (KSS), Himax Technologies, Inc. (ADR) (HIMX) and Chesapeake Energy Corporation (CHK)

Advertisement

Wednesday proved to be a light day of trading that saw the dollar’s value diminish, and oil prices fall by 2.5%. However, there was more good for stocks than bad, as the S&P 500 improved by 0.3%, while the Dow Jones Industrial Average was 0.2% higher at day’s end.

3 Stocks to Watch on Thursday: Chesapeake Energy Corporation (CHK), Kohl's Corporation (KSS) and Himax Technologies, Inc. (ADR) (HIMX)Things look cheery for at least a trio of stocks heading into Thursday’s action. Chesapeake Energy Corporation (NYSE:CHK), Kohl’s Corporation (NYSE:KSS) and Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) are all making big moves in early Thursday trading.

Here’s what’s moving these stocks ahead:

Chesapeake Energy Corporation (CHK)

CHK shares look to open Thursday with a big move higher amid news that Chesapeake Energy is dropping its business at the Barnett Shale. Chesapeake faced a number of obstacles in the Texas location, including rising fuel prices and credit downgrades. The natural gas provider will hand over its its assets to Saddle Barnett Resources LLC.

Chesapeake will not rake in any proceeds from its Barnett assets, which are worth about $1 billion. However, the move will free the company from about $1.9 billion worth of commitments in the natural gas reservoir. The company also will end its deal with Williams Partners LP (NYSE:WPZ), shelling out $400 million to do so.

Chesapeake expects its operating income to increase by $200 million to $300 million annually for the rest of year, and through 2019.

CHK stock was surging more than 6% higher on Thursday morning.

Himax Technologies, Inc. (ADR) (HIMX)

HIMX shares are making a similar move this morning on an earnings beat after reporting that quarterly profits doubled year-over-year.

The Taiwanese fabless semiconductor company earning $19.8 million, or 11.5 cents per share — 124% better than the year-ago period, and enough to tackle analyst expectations for 10 cents per share. Meanwhile, revenue growth of 11.5% put sales at $201.1 million, which also beat the Street, which expected $198.61 million.

The company now is looking for third-quarter adjusted earnings to come in between 10 to 12 cents per share, with gross margins flat to slightly lower YoY.

Investors cheered the news, sending HIMX up 6% before Thursday’s bell.

Kohl’s Corporation (KSS)

KSS shares complete a trio of positive morning movers, as Kohl’s also beat the Street with its Thursday morning Q2 report.

Kohl’s grew profits by 7.7% to $140 million, or 77 cents per share. On an adjusted basis, profits of $1.22 per share were more than enough to top FactSet consensus expectations for $1.03. Revenues were off slightly to $4.18 billion — thanks in part to a nearly 2% drop in comps — but they edged estimates for $4.16 billion.

Guidance was a mixed bag, as Kohl’s actually lowered adjusted earnings outlook to $3.80-$4 per share from $4.05-$4.25, but the midpoint still was enough to top expectations for $3.84.

Thanks to the beat, share should make a healthy bounce off the 50-day moving average at $38. Premarket gains of about 9% should put KSS stock a few percent below the 200-day moving average at $42.68.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2016/08/3-stocks-to-watch-on-thursday-chesapeake-energy-corporation-chk-kohls-corporation-kss-and-himax-technologies-inc-adr-himx/.

©2024 InvestorPlace Media, LLC