The market enjoyed steady gains Thursday as the energy industry surged 1.8%, while utilities stocks gained 1.2%. The S&P 500 grew 0.2%, the Dow Jones Industrial Average inched 0.1% higher, while the Nasdaq Composite climbed 0.2% higher.
Several companies reported earnings yesterday, including Applied Materials, Inc. (NASDAQ:AMAT) and Gap Inc (NYSE:GPS). Meanwhile, Corrections Corp of America (NYSE:CXW) responded to a decision from the Department of Justice regarding its private prisons.
Here’s how these companies fared after the bell:
Applied Materials, Inc. (AMAT)
Applied Materials posted its fiscal third-quarter report yesterday.
It was a healthy period of growth for the semiconductors manufacturer that saw new orders rise 26% year-over-year to $3.66 billion.
The company earned 50 cents per share over the quarter, topping Wall Street’s expectations by 2 cents a share.
Revenue came in at $2.82 billion, which missed the consensus estimate by $20 million. However, this figure still marks a 13% increase compared to the year-ago quarter.
The future looks bright for Applied Materials with fourth-quarter earnings set to come in at around 65 cents per share — 17 cents per share higher than expectations.
AMAT stock popped 6.2% after hours.
Gap Inc (GPS)
Gap had a profitable second quarter, but full-year earnings are slated to come in below what analysts predict.
Adjusted for one-time items, the retailer raked in $3.85 billion in net sales, in line with revenue projections of the same amount. The company earned 60 cents per share over the three-month period, adjusted for one-time items. Analysts had called for earnings of 59 cents a share.
However, Gap is predicting full-year earnings in a range of $1.87 to $1.92. Analysts were expecting $1.95.
GPS shares fell 1.4% after the bell Thursday and is down further this morning.
Corrections Corp of America (CXW)
Corrections Corp had a rough day as the U.S. Department of Justice announced that it will stop using private prisons.
CXW shares plummeted 35.5% as the agency said it will cease using these correctional facilities due to the fact that they are less safe and effective than other prisons.
However, Corrections Corp prepared a statement in response to this move that was released at the close of regular trading hours via Street Insider. The most important piece of information from the response make the claim that these facilities only make up 7% of the company’s business.
Corrections Corp also defended itself, noting that the DOJ’s findings are not consistent with multiple independent studies conducted by the company that show they are “equal or better with regard to safety and quality,” the statement read.
CXW stock soared 6% after hours and has continued its climb this morning.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
