3 Stocks to Watch Wednesday: Qualcomm, Inc. (QCOM), Whole Foods Market, Inc. (WFM) and Wynn Resorts, Limited (WYNN)

Advertisement

U.S. stocks continued their slump on Wednesday, especially yield-sensitive sectors such as telecoms, which slipped 1.5% as a whole. Looking at the broader indices, the S&P 500 Index dipped 0.9%, the Dow Jones Industrial Average declined 0.4% and the Nasdaq Composite posted a 0.9% drop.

3 Stocks to Watch on Wednesday: Qualcomm, Inc. (QCOM), Whole Foods Market, Inc. (WFM) and Wynn Resorts, Limited (WYNN)A major management change and earnings dominated the after-hours news, with companies such as Qualcomm, Inc. (NASDAQ:QCOM), Whole Foods Market, Inc. (NASDAQ:WFM) and Wynn Resorts, Limited (NASDAQ:WYNN) releasing financial results.

Here’s how they did:

Qualcomm, Inc. (QCOM)

QCOM shares found it difficult to get off the ground despite impressive earnings growth for its fiscal fourth quarter.

The digital comm company earned $1.07 per share, a robust 60% year-over-year increase and better than the Zacks estimate of 98 cents per share. Meanwhile, revenues of $6.2 billion were up 13% from the year-ago period, and also easily got past expectations for $5.79 billion.

Among Qualcomm’s key moves over the past quarter was the finalization of new patent licensing deals in China, as well as chip sales for smartphones in the country.

Qualcomm chipset shipments enjoyed a 4% boost year-over-year to 211 million.

“We are forecasting continued growth of global 3G/4G device shipments in calendar year 2017, led by growing demand in emerging regions,” CEO Steve Mollenkopf said in a statement.

Nonetheless, QCOM shares were trading level in Thursday’s early action.

Whole Foods Market, Inc. (WFM)

WFM ended its Wednesday on a slightly positive note, and a united note.

The organic-focused grocer earned 28 cents per share in its fiscal fourth quarter, which was 4 cents better than Wall Street expected. Revenues of $3.5 billion merely met the consensus mark, however, and same-store sales declined 2.6%, which was wider than the 2% that was expected. The comps decline was its first since 2009.

For its fiscal year 2017, Whole Foods believes sales will grow 2.5% to 4.5%, and earnings are slated to be about $1.42 per share.

The company also is consolidating the C-suite, making co-founder John Mackey the lone chief executive officer. Mackey previously shared the role with Walter Robb, but Mackey is taking the helm by himself to try to fix Whole Foods’ problematic sales.

WFM shareholders seemed encouraged, bidding shares up 5% on Thursday morning.

Wynn Resorts, Limited (WYNN)

WYNN shares were getting the worst of it, though.

The casino stock posted a loss of $17.4 million for the quarter, a year after it posted a net profit of $96.2 million. Things weren’t better on an adjusted basis, where earnings of 75 cents per share were off more than 12% year-over-year and missed expectations of 84 cents per share.

Revenues of $113.5 million were up 11.4% year-over-year, which was enough to match estimates.

Wynn’s troubles came from its Macau holdings, which came in well short of estimates for $734 million in revenue, posting $683 million instead. The company has been working with the Macau government to improve its new hotel.

CEO Stephen Wynn on its Macau problems:

“So what we have is an anomalous situation where all four sides of our property are currently being enclosed by either barricades or construction blockades of one kind or another. It has tended to isolate our property on all four sides and it’s made access to the Palace temporarily highly encumbered. Crossing the street or getting through these barricades that have erected by MGM and by the folks who are building the light railsystem, and it comes to a – its first stop with escalators and bridges right in the midpoint of our front yard where our gondola station is.”

WYNN shares are off 5% this morning.


Article printed from InvestorPlace Media, https://investorplace.com/2016/11/3-stocks-watch-wednesday-qualcomm-inc-qcom-whole-foods-market-inc-wfm-wynn-resorts-limited-wynn-iplace/.

©2024 InvestorPlace Media, LLC