The markets came roaring back on Monday, with real estate helping to lead a broad recovery in stocks. The S&P 500 Index charged ahead by 1%, the Dow Jones Industrial Average gained 0.6% and the Nasdaq Composite jumped 1.3%. Better still, some of the recent North Korea-sparked volatility should continue to simmer as Kim Jong-Un has opted to hold off on his plan to launch missiles in the direction of Guam.
While earnings are driving movement in Coach Inc (NYSE:COH) this morning, don’t sleep on Pandora Media Inc (NYSE:P) and Synchrony Financial (NYSE:SYF), both of which are making pivotal headlines of their own.
Here’s what you need to know as we head into Tuesday’s trade.
Coach Inc (COH)
COH shares are plunging this morning following a mixed result in its fiscal fourth-quarter earnings report.
Earnings themselves were plenty fine, with net income of $152 million coming in 85% better year-over-year, and adjusted profits of 50 cents per share a penny better than Wall Street estimates.
However, revenue growth of 6% to $1.13 billion wasn’t quite up to snuff, missing forecasts for $1.51 billion. That shortcoming came despite a better-than-expected figure for North American comparable-store sales, which at 4% growth topped estimates for 3.6% expansion.
Also disconcerting was the luxury accessories retailer’s guidance, which came up short on both ends.
Coach’s full-year top-line forecast of $5.8 billion-$5.9 billion fell under estimates for $6 billion, while profit projections of $2.35-$2.40 per share were well below the pros’ call for $2.49 per share.
COH shares are off about 8% this morning in response, cutting into what otherwise has been a stellar 2017, with shares up 37% before Tuesday’s report.
Synchrony Financial (SYF)
Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) released its latest Form 13F, and revealed that it had built a new stake in the consumer financial services company, now owning 17.5 million shares of SYF stock.
The move could be due to some investor sentiment that Synchrony Financial is undervalued. Colin Plunkett, from Morningstar, said the company “really has a big opportunity to return cash to shareholders.”
Coincidentally, Buffett’s firm also dumped the rest of its 10.6-million share stake in General Electric, which saw CEO Jeff Immelt exit earlier this year.
SYF shares are set to jump by about 4% this morning.
Pandora Media Inc (P)
P shares are jumping after the company appointed a new boss.
The music streaming service will now be spearheaded by new CEO Roger Lynch, who previously served in senior roles for Sling TV and Dish Network Corp (NASDAQ:DISH).
“Roger brings a stellar leadership reputation, a wealth of consumer experience, and a lifelong passion for music to Pandora — all of which are critical ingredients in the continued evolution of our company,” chairman Roger Faxon said in a statement.
Co-founder Tim Westergren, who came over last year to head Pandora, will be stepping down. Westergren also was at the helm during the service’s early days, between 2002 and 2004.
The company added that interim CEO Naveen Chopra will continue serving as chief financial officer, while Michael Lynton will be added to its board of directors.
“Lynch has extensive experience leading, innovating and scaling consumer media and technology businesses globally, including having guided a number of companies through critical transformation periods,” Pandora wrote in its press release.
Lynch’s experience includes working with large content providers that embrace the changes in technology for distribution purposes.
P shares are surging more than 3% ahead of Tuesday’s opening bell.