U.S. markets finished slightly higher on Monday, extending their rally as oil ticked upward. The S&P 500 Index and Dow Jones Industrial Average were 0.1% better, while the Nasdaq Composite climbed 0.3%
Heading into Tuesday’s trade, the biggest movers are again dominated by earnings. Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Priceline Group Inc (NASDAQ:PCLN) and Workday Inc (NYSE:WDAY) find themselves among today’s stocks to watch.
Here’s what you need to know heading into Tuesday:
Valeant Pharmaceuticals Intl Inc
VRX shares were off significantly in early Tuesday trade despite reporting fourth-quarter beats on the top and bottom lines.
Valeant earned $1.26 per share on an adjusted basis, easily clearing Wall Street’s bar of $1.19 per share. Revenues of $2.40 billion were enough to beat analyst estimates of $2.33 billion.
However, the company’s overall net loss expanded from $385 million ($1.12 per share) last year to $515 million ($1.47 per share) in the most recent quarter. And those revenues were off by nearly 13%. Valaent blamed higher interest expenses and wider foreign exchange losses for its deficit.
Not even an optimistic revenue forecast for full-year 2017 could help VRX. The midpoint of Valeant’s range of $8.9 billion to $9.1 billion just beat out analyst expectations for $8.96 billion.
VRX shares were off 6% in Tuesday’s premarket trade, cutting considerably into shares’ 15% year-to-date rally.
Priceline Group Inc (PCLN)
PCLN shares were getting a bump amid a positive fourth-quarter earnings report.
Priceline said it earned net income of $674 million ($13.47 per share) for Q4, far better than the year-ago period’s $504 million ($10 per share). Meanwhile, adjusted earnings of $14.21 per share were well better than the consensus estimate for $12.98 per share.
Revenues of $2.35 billion were 17% better year-over-year and got over Wall Street’s mark by about $50 million.