Stocks were mixed on Monday, with most upward momentum coming from the energy sector after OPEC announced it would cut output by 558,000 barrels per day. The S&P 500 Index slipped 0.1%, the Dow Jones Industrial Average improved by 0.2% and the Nasdaq Composite fell 0.6%.
Heading into Tuesday’s trade, Boeing Co (NYSE:BA) is heading higher on some positive investor news. Meanwhile, KMG Chemicals, Inc. (NYSE:KMG) and VeriFone Systems Inc (NYSE:PAY) are moving on earnings reports.
Here’s what you should know:
Boeing Co (BA)
BA shares are headed higher today despite announcing it was cutting back on one of its key aircraft.
The aerospace giant is reducing its production of its twin-aisle 777 jetliner by 40% from its current rate of 8.3 planes per month. Boeing will invest on producing newer models instead. However, Boeing said the move would affects its 2016 results only by a modest amount.
What has shareholders happy is a little cash being thrown their way.
Boeing also said it would increase its quarterly dividend by 30%, from $1.09 per share to $1.42 per share. Based on the new payout, BA shares yield roughly 3.6%. The company also authorized $14 billion in stock buybacks. All in all, the cash spend was better than what analysts were anticipating.
BA stock is up about 2% in premarket trade.
VeriFone Systems Inc (PAY)
PAY shares were off Tuesday morning despite a fourth-quarter beat.
For its Q4, VeriFone earned 30 cents per share on an adjusted basis, topping Wall Street analysts’ expectations by a penny. Meanwhile, the company topped revenue estimates of $460.9 million by $3.1 million.
CEO Paul Galant said that the company was happy with its results and it sees plenty of potential going forward.
But the reason shareholders are down on VeriFone this morning was the company’s outlook.
Specifically, the company expects 20 cents per share in profits on $446 million in sales for the current quarter. Full-year adjusted earnings are slated to be in the range of $1.35 to $1.39 per share, while revenue will be around $1.91 billion.
Analysts were looking for quarterly earnings of 36 cents per share on $470.7 million in revenues, and a full-year profit of $1.59 per share on $2 billion in revs.
PAY stock was off 2% on Monday, adding to a dreadful year in which shares were already down by more than 40%.
Proteon Therapeutics Inc (PRTO)
PRTO shares were hemorrhaging after a Phase 3 clinical trial failed to meet its primary endpoint.
The company’s product, PATENCY-1, is an investigational vonapanitase for patients with chronic kidney disease. Specifically, it treats those patients who have received (or expect to receive) hemodialysis and also underwent surgical creation of a radiocephalic ateriovenous fistula.
But the company’s results fell short of improving primary unassisted patency compared to the placebo. Per its press release:
“In PATENCY-1, vonapanitase-treated patients had a 17% reduction in the risk of primary unassisted patency loss over one year, compared to placebo (p=0.254). At the end of one year, 42% of patients who received vonapanitase retained primary unassisted patency, compared to 31% of placebo-treated patients.”
“However, it appears that vonapanitase had a drug effect and we are encouraged by the secondary patency and fistula use for hemodialysis findings in this trial, both of which we believe are clinically important,” Chief Medical officer Steven Burke said.
PRTO shares were off 70% this morning.
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