3 Stocks to Watch on Wednesday: Chipotle Mexican Grill, Inc. (CMG), Boeing Co (BA) and Pandora Media Inc (P)

Advertisement

U.S. stocks were sliding yesterday as consumer discretionary shares lost 1.2% on the day while gold managed to receive a 0.8% bump. The S&P 500 Index fell 0.4%, the Dow Jones Industrial Average dropped 0.2% and the Nasdaq Composite lost 0.5%.

3 Stocks to Watch on Wednesday: Chipotle Mexican Grill, Inc. (CMG), Boeing Co (BA) and Pandora Media Inc (P)As earnings season progresses, Chipotle Mexican Grill, Inc. (NYSE:CMG), Boeing Co (NYSE:BA) and Pandora Media Inc (NYSE:P) were among the latest companies to find themselves in Wall Street’s crosshairs.

Here’s how they fared:

Chipotle Mexican Grill, Inc. (CMG)

Chipotle released a dour third-quarter report after Tuesday’s market close, and CMG stock was down as a result.

The fast-casual restaurant chain earned 27 cents per share, marking a significant decline compared to the year-ago’s third quarter of $4.59 a share. Revenue of $1.04 billion was off nearly 15% and was lower than estimates for $1.09 billion. Same-store sales were also horrid, off 21.9% versus expectations of an 18.2% decline.

The culprit is no surprise — continued fallout from the company’s E. coli and other health scares over the past year.

Chipotle did add chorizo to its offerings, and that made up 7% of the company’s sales over its quarter.

CMG also is narrowing its focus, dropping the ShopHouse Asian chain of 15 restaurants in Washington, D.C., Maryland, Illinois and California. The food appealed to some, but the concept failed to gain traction.

Chipotle stock is off about 3% this morning.

Boeing Co (BA)

BA shares were off more than a percent despite boosted guidance and a Street-beating quarter.

Boeing earnings came to $3.21 per share, boosted heavily by a 70-cent-per-share tax benefit. Without the tax benefit, earnings still climbed over Wall Street’s bar for $2.62 per share in profits. Revenues of $23.9 billion also beat expectations for $23.64 billion, though the figure was off 7.5% year-over-year.

Boeing also upgraded its revenue guidance for $93.5 billion to $95.5 billion for the full year, which is $500 million on both ends from its previous forecast. Full-year adjusted earnings guidance was much improved, to $6.80 to $7 per share, but that was entirely an effect of the tax benefit.

BA shares were off a bit Wednesday morning, but shares had advanced steadily heading into the earnings report, up about 7% in the past month alone.

Pandora Media Inc (P)

Pandora stock was dropping even harder after it revealed a disappointing third quarter.

The music streaming service’s earnings amounted to a loss of 27 cents per share, and 7 cents a share excluding certain items. Analysts were expecting a narrower adjusted loss of 6 cents.

Pandora also failed to meet revenue estimates; Pandora earned $351.9 million compared to the $366.3 million estimate, though it did top the year-ago quarter’s $311.9 million in sales.

Active listeners and listening hours disappointed, too. Pandora boasted 77.9 million active users for Q3, whereas Wall Street hoped for 78.5 million. Those users registered 5.4 billion active listening hours, missing estimates by 100 million.

Lastly, Pandora dropped its full-year revenue forecast from a range of $1.39 billion to $1.41 billion to a range of $1.35 billion to $1.37 billion.

P stock was off 5% at Wednesday’s open.


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/3-stocks-to-watch-on-wednesday-chipotle-mexican-grill-inc-cmg-boeing-co-ba-and-pandora-media-inc-p-iplace/.

©2024 InvestorPlace Media, LLC