Despite a 0.4% move higher from tech stocks, helped by Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN), U.S. equities suffered a broader down day Monday. The S&P 500 Index fell 0.1%, the Dow Jones Industrial Average dipped 0.3% and the Nasdaq Composite grew 0.4%.
As we head into Tuesday’s action, we’ll be fully inundated with post-earnings reactions. Making moves this morning on their latest quarterly results are Alphabet Inc (NASDAQ:GOOGL) and Biogen Inc (NASDAQ:BIIB), though Michael Kors Holdings Ltd (NYSE:KORS) is also making waves via a big-name buyout in the fashion space.
Here’s what you need to know as we head into Tuesday’s trade.
Alphabet Inc (GOOGL)
Alphabet’s second attempt to sustain a run above $1,000 per share has hit a snag, as the company’s second-quarter earnings report failed to impress investors enough to keep GOOGL stock on the rise.
The tech giant earned $5.01 per share in its second quarter — a decline of about 28% from the year-ago period, when it earned $7 per share. That figure was held back by a $2.74 billion fine from the European Commission, issued to the Silicon Valley corporation for anti-competitive behavior; without it, Alphabet would have reported profits of $8.90 per share. Its earnings still beat projections of $4.44 per share.
Meanwhile, revenues of $26.01 billion also beat analyst expectations of $26.5 billion. They also represented a 20.9% growth clip YOY. Mobile revenues rose 18% to $22.7 billion, as paid clicks were higher by 52%.
Cost per click continued to be a problem, declining 6% sequentially and 23% YOY.
The company said it is focusing on “dollar growth” in revenue and operating income instead of margins.
GOOGL shares are off roughly 3% Tuesday morning, pulling further back from $1,000 once again — a level that the stock briefly touched Monday before pulling back.
Michael Kors Holdings Ltd (KORS)
Michael Kors is making headlines this morning on a big acquisition, though Wall Street doesn’t seem too sure about what to make of it.
Michael Kors is buying up Jimmy Choo Plc — a maker of high-end footwear and other luxury accessories — for $1.2 billion to help bolster its own fading brand. KORS shares now sit 65% below their 2014 highs, weighed down by flagging sales amid what many believe was an oversaturation of its wares, including by distributing its products in outlet malls.
The company has responded by pulling back out of some department stores and even shuttering some of its own retail locations.
Jimmy Choo currently is 68% owned by JAB Holding Co., which previously said it wanted to exit the fashion business. The company, founded in 1996, is known for its user-high-end women’s shoes.
The deal hasn’t excited investors, however. KORS shares are only up a bit more than 1% in Tuesday’s premarket trade.
Biogen Inc (BIIB)
Lastly, BIIB is making large strides forward following beats on both the top and bottom lines reported this morning.
The biotech stock’s second-quarter earnings came to $863 million $4.07 per share), down 18% year-over-year. However, adjusted profits of $5.04 per share were well ahead of consensus estimates for $4.37.
The top-line beat was comfortable, too, with $3.08 billion in revenues just slipping past expectations for $2.81 billion. That figure was 7% better year-over-year, and powered by a 13% improvement in sales of Tecfidera, one of the company’s multiple sclerosis drugs. Overall, its MS treatments improved revenues by 5% in the quarter.
Biogen also raised its guidance, looking for earnings in a range of $20.80-$21.40 per share, up from $20.45-$21.25.
BIIB stock is up roughly 5% this morning, bringing shares back up from roughly breakeven.
