And we’re off!
First-quarter earnings season has unofficially begun with the Alcoa Inc (NYSE:AA) report after Monday’s bell. Prior to the close, the broader markets slid back a bit, with the S&P 500 off 0.3% at day’s end, and the Dow Jones Industrial Average down 0.1%.
Naturally, Alcoa is one of the companies that investors will want to keep close tabs on today, as are Juniper Networks, Inc. (NYSE:JNPR) and Marathon Oil Corporation (NYSE:MRO).
Here’s what you need to know.
Alcoa Inc (AA)
Alcoa shares were setting up for a little Tuesday bleeding on the company’s quarterly results, revealed Monday afternoon.
The lightweight metals manufacturer posted first-quarter earnings of 7 cents per share, surpassing the consensus estimate of 2 cents per share. However, revenue came in at $4.95 billion for the quarter, missing analysts’ projection of $5.14 billion.
The announcement came ahead of Alcoa’s plans to split into two publicly traded companies, with one company focusing on higher-growth segments such as car and airplane parts. The manufacturer’s commodities price were lower on recent sales.
The company also announced that it cut its workforce over the quarter by 600 jobs, with a further 400 job cuts planned.
AA stock was set to start Tuesday’s trading with a 4% slide.
Juniper Networks, Inc. (JNPR)
JNPR stock fell as Juniper released an update on what its latest quarterly results will reveal.
The high-performance network developer announced that its fiscal first-quarter earnings will fail to live up to estimates, which the company previously projected at 42 to 46 cents per share — in line with analysts’ estimate of 45 cents. Investors should now expect EPS in the range of 35 to 37 cents.
Additionally, Juniper’s quarterly revenue will be in the range of $1.09 billion to $1.1 billion, missing the company’s original guidance of $1.15 billion to $1.19 billion and the consensus estimate of $1.18 billion.
These lower-than-expected results can be partially attributed to decreased demand from Juniper’s enterprise segment.
JNPR shares were set to double their losses in 2016, off nearly 10% in Tuesday’s premarket trading.
Marathon Oil Corporation (MRO)
Marathon Oil announced Monday evening that its Wyoming upstream and midstream assets will be sold for $870 million. The identity of the buyers were not revealed.
Marathon Oil’s Wyoming sale includes waterflood developments and a 570-mile pipeline. Furthermore, the crude oil seller revealed yesterday that other transactions took place recently, totaling an additional $80 million.
The company’s most recent quarterly earnings report revealed a fourth-quarter loss of $793 million.
MRO stock was up 1% higher before Tuesday’s bell.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
