3 Stocks to Watch on Wednesday: Nike Inc (NKE), Sonic Corporation (SONC) and Tempur Sealy International Inc (TPX)

Tuesday was a positive day for the stock market on the heels of Hillary Clinton’s impressive win over Donald Trump at the first presidential debate. The S&P 500 index grew 0.6%, the Dow Jones Industrial Average gained 0.7% the Nasdaq Composite was 0.9% better by day’s end.

3 Stocks to Watch on Wednesday: Nike Inc (NKE), Sonic Corporation (SONC) and Tempur Sealy International Inc (TPX)Several companies had earnings news to announce in the afternoon, including Nike Inc (NYSE:NKE), Sonic Corporation (NASDAQ:SONC) and Tempur Sealy International Inc (NYSE:TPX)

Here’s how they did:

Nike Inc (NKE)

Nike released its fiscal-first-quarter report Tuesday.

Despite being among the global leaders in the footwear market, the company’s futures orders — which measures expected September sales — only rose 7%, missing the view of 8%.

Earnings were strong at 73 cents per share, topping the average projection of 56 cents per share based on a Thomson Reuters poll that surveyed analysts.

For the three-month period, Nike raked in $9.06 billion, which was $19 million ahead of the revenue forecast.

Gross margins declined 2% due to a higher off-price mix.

NKE stock fell 2.6% after the bell Tuesday.

Sonic Corporation (SONC)

Sonic updated its expectations for its fiscal fourth quarter.

The fast-food chain revealed that earnings for the period are slated to come in at around 43 cents to 45 cents per share, lower than the 48 cents per share that analysts predicted.

Revenue will also fall short of what Wall Street had hoped for as it will drop 2%, while same-store sales will slip 3% once the official earnings report is released.

Sonic will be releasing its fourth-quarter results on Oct. 24.

The company opened 19 new stores over the period.

SONC shares declined 6.9% after hours yesterday.

Tempur Sealy International Inc (TPX)

Tempur Sealy International was the biggest loser ahead of hump day.

The company sells some of the most comfortable and healthiest mattresses — as well as other bedding products — in the world, including its iconic TempurPedic mattress.

However, these items can be quite pricey, which could be a reason why 2016’s full-year sales will be 1% to 3% lower compared to 2015’s totals.

Earnings before interest, taxes, depreciation and amortization (EBITDA) will be in the range of $500 million to $525 million for the fiscal year, marking a 5% drop compared to Tempur Sealy’s previous outlook.

TPX stock plummeted 24.8% after Tuesday’s market close.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/09/3-stocks-to-watch-on-wednesday-nike-inc-nke-sonic-corporation-sonc-and-tempur-sealy-international-inc-tpx/.

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