SoftBank Group Corp’s $32 billion acquisition of Arm Holdings plc ADR (NASDAQ:ARMH) helped lead the markets to another broad up day in tech and the rest of the market. The S&P 500 rose 0.2% Monday, and the Dow Jones Industrial Average improved by 0.1%.
Today will see another slate of post-earnings movement, with International Business Machines Corp. (NYSE:IBM) and Yahoo! Inc. (NASDAQ:YHOO) in focus. Meanwhile, Hudson Technologies, Inc. (NASDAQ:HDSN) made a major splash in the terribly exciting refrigeration industry.
Here’s what you need to know ahead of Tuesday trading:
Yahoo! Inc. (YHOO)
Yahoo posted fiscal second-quarter results yesterday, but despite the fact that the company missed, what’s likely hampering YHOO stock this morning was the lack of … other news.
Yahoo reported earnings of 9 cents per share for the second quarter, off from 16 cents in the year-ago period, and short of expectations by a penny. Revenues improved from $1.24 billion to $1.31 billion, easily besting the Wall Street consensus for $1.08 billion.
Particularly embarrassing was the $482 million writedown of Tumblr — another black mark on the resume of CEO Marissa Mayer. The company set a sales goal of $100 million for Tumblr, but the blog fell wildly short.
That said, investors might have felt short-changed, but not necessarily by results. Instead, Wall Street was left wondering as to the future of the company. Monday reportedly was the last day Yahoo was accepting bids, but the company did not report anything substantial on that front.
YHOO was off slightly in Tuesday trading.
International Business Machines Corp. (IBM)
IBM stock should have a decent day ahead of it, as second-quarter earnings came in ahead of estimates, prompting a small improvement in shares.
IBM’s profits came to $2.95 per share, well ahead of the $2.89 per share that Wall Street projected. Meanwhile, revenue came in at $20.2 billion over the three-month period, beating estimates of $20.03 billion.
The encouraging results were driven in part by the company’s blossoming cloud business, which experienced revenue growth of 30%.
IBM shares were up 1.1% after hours Monday.
Hudson Technologies, Inc. (HDSN)
HDSN shares are surging this morning after the company announced a five-year contract with the Department of Defense on Monday.
The deal has a maximum value of $400 million, and it is designed to help the refrigerant solutions provider expand its business to all five branches of the U.S. military.
Hudson Technologies will supply the military with refrigerants, compressed gases, cylinders and other related items. The company said the move is a big win for the industrial gas sector.
“While the ultimate amount of revenue will depend on order levels, this award solidifies our presence in the refrigerants and industrial gas sectors and we believe will contribute considerable future revenue and earnings growth,” CEO Kevin Zugibe said.
HDSN stock was up more than 35% in Tuesday’s premarket trade.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.