3 Stocks to Watch on Tuesday: Priceline Group Inc (PCLN), Valeant Pharmaceuticals Intl Inc (VRX) and Workday Inc (WDAY)

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%

3 Stocks to Watch on Tuesday: Priceline Group Inc (PCLN), Valeant Pharmaceuticals Intl Inc (VRX) and Workday Inc (WDAY)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.

The big driver for the company behind Priceline, Booking.com, Kayak and Opentable was a 31% improvement in hotel reservations to 129.7 million nights. Overall, total bookings improved by 26% to $15.1 billion.

Priceline did come up short in its Q1 adjusted earnings forecast, projecting $8.25 to $8.65 in profits versus Wall Street’s estimate of $10.65 per share. Nonetheless, PCLN was surging by about 4% in Tuesday’s premarket trade.

Workday Inc (WDAY)

WDAY shares were getting clipped on Tuesday following its fourth-quarter results.

Workday earned an adjusted 7 cents per share, easily topping expectations for a 1-cent loss. Revenues of $436.7 million were up 35% year-over-year and also hurdled estimates of $430.2 million.

Guidance also beat the Street, with Workday forecasting full-year fiscal 2018 revenues in a range of $2.005 to $2.025 billion versus expectations of $1.99 billion. Workday’s CFO said that would represent growth of 27%-29% and put the company “n track to be only the second true cloud company to reach this significant milestone.”

Still, Tuesday appeared to be a “sell the news” moment. WDAY stock had climbed some 35% in 2017 prior to the Q4 report, but were down about 6% after the announcement.


Article printed from InvestorPlace Media, https://investorplace.com/2017/02/3-stocks-to-watch-on-tuesday-priceline-group-inc-pcln-valeant-pharmaceuticals-intl-inc-vrx-and-workday-inc-wday/.

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