It was a strong day for U.S. equities with the technology sector leading the way, improving 1.2%, while treasury bonds suffered. The S&P 500 Index increased 0.5% and the Nasdaq Composite edged 1% higher while the Dow Jones Industrial Average crawled 0.4% higher.
With earnings season in full swing, Sonic Corporation (NASDAQ:SONC), Visa Inc (NYSE:V) and Zions Bancorp (NASDAQ:ZION) all reported their most recent financial results.
Here’s how they did:
Sonic Corporation (SONC)
Sonic released its quarterly earnings report yesterday.
The drive-in chain earned 45 cents per share over its fourth quarter, beating the consensus estimate predicted by analysts of 44 cents a share.
Revenues failed to meet expectations at $162.1 million, which was $4.9 million behind what the outlook called for. Sonic added that its fiscal year 2016 was solid overall, experiencing a system-wide 2.6% same-store sales pop.
Over the course of the quarter, same-store sales fell 2%. The company said that its adjusted, full-year profit is slated to be down around 7% compared to its previous fiscal year.
Comparable sales for stores open for at least 15 months will be in the range of being flat and slumping 2%.
Sonic hopes to convert 95% of its stores into franchises by the end of the business year.
SONC shares sunk by over 11.3% after hours Monday.
Visa Inc (V)
Visa shares were declining despite the company beating projections.
Wall Street was looking for earnings of 73 cents per share, which was five cents below the 78 cents per share the credit card provider earned.
Analysts polled by Thomson Reuters also missed revenue estimates, which came in at $4.26 billion, topping the forecast of $4.23 billion for the three-month period.
A beneficial tax rate, lower expenses and positive net sales helped Visa post a strong showing over the course of the quarter, according to Chief Financial Officer Vasant Prabhu.
Additionally, the company announced that incoming CEO Alfred F. Kelly will receive a compensation of $15.4 million once he joins the team, marking a 31% increase compared to what his predecessor raked in.
Kelly will be making $1.25 million as his base salary, with a $3.13 million target payout to go along with at least $6.3 million in stock plus a $11 million equity package every year.
The company is still holding its breath due to the economic uncertainty of Brexit, which will likely hamper domestic and cross-border payment volumes.
For the new fiscal year, Visa expects earnings, excluding one-time items, to increase somewhere between 13% to 19% year-over-year. Revenue will surge 16% to 18%, compared to the 20% rise that analysts expect.
Earnings will likely be around 19% if analysts are correct, making this figure about $3.32 a share.
V stock slid 1.1% after the bell yesterday.
Zions Bancorp (ZION)
Zions Bancorp announced a third-quarter earnings beat.
The company revealed that it raked in 57 cents per share over its most recent three-month period, beating expectations of 50 cents per share. The figure also marked an 18-cent-per-share increase year-over-year.
Net sales were also a positive for the lender as it improved 11% year-over-year to $614.1 million. Analysts were calling for revenue of $603.2 million for Zions Bancorp.
Net interest income for the company came in at $469 million for the period, missing what Wall Street had hoped for by $8 million.
ZION shares gained 1.4% after Monday’s market close.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
