No news was once again good news to start the new trading month. That is, with nothing to suggest there was a reason not to, traders continued to buy, putting stocks back within reach of last week’s record highs. The S&P 500 Index ended the session at 2,476.35 up 0.24%.
Not every name hopped on board the slow-moving bullish train though. Under Armour Inc (NYSE:UAA), Pitney Bowes Inc. (NYSE:PBI) and Cummins Inc. (NYSE:CMI) were all moving rapidly in the other direction after unveiling troubling quarterly reports and outlooks.
Here’s what investors need to know about each one.
Cummins Inc. (CMI)
All things considered, engine maker Cummins did well last quarter. Earnings of $2.53 per share were well up from the bottom line of $2.40 per share of CMI stock reported for the same quarter a year earlier, while sales of $5.1 billion were 12% better than the year-ago top line. Unfortunately, analysts were calling for a profit of $2.58 per share. Not even the decided beat of revenue estimates of $4.8 billion or raised guidance could stave off the 6.2% setback CMI shares suffered on Tuesday.
Nevertheless, the stock still has some fans on Wall Street. CFRA Research’s Jim Corridore is one of them. He noted following the release of the company’s second-quarter report on Tuesday:
“Cummins saw strong demand in North America and China, but ran into higher warranty costs. Demand has improved, and should drive EPS growth ahead. CMI raises sales guidance to growth of 9%-11% from 4%-7%. We think CMI is a well run technology leader well positioned to benefit from good demand.”
Pitney Bowes Inc. (PBI)
As bad as the post-earnings plunge for CMI was, it was even worse for business machinery company Pitney Bowes, which saw its stock tumble 15.4% after reporting a second-quarter sales and earnings miss.
For the period ending in June, Pitney Bowes turned $821.4 million worth of revenue into an operating profit of 33 cents per share. Problem: The pros were calling for earnings of 36 cents per share of PBI and sales of $822.2 million.
Perhaps worse, sales as well as profits were down on a year-over-year basis. With PBI stock up more than 17% since its first quarter report, investors were clearly expecting more progress and a guidance revision that was more optimistic than merely flat comparisons.
Under Armour Inc (UAA)
Last but not least, athletic apparel brand Under Armour continues to struggle, revealing second-quarter numbers today that spooked shareholders, and then fanning those flames by paring back its guidance.
For its second quarter of 2017, Under Armour posted a loss of 3 cents per share on sales of $1.09 billion. The bottom line was actually better year-over-year, and better than the 6 cent per-share loss analysts had modeled. Wall Street was also only looking for sales of $1.08 billion. The beats just weren’t convincing enough though, with the company lowering its full year outlook. It was previously looking for sales growth of between 11% and 12%, but reeled that growth outlook in to a range of only 9% to 11%.
Under Armour also poured salt in the wound by announcing it would be laying off 280 people, indicating a defensive rather than an offensive mindset.
UAA ended the day 8.6% lower.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.