3 Stocks to Watch on Wednesday: Amazon.com, Inc. (AMZN), Cree, Inc. (CREE) and Select Comfort Corp. (SCSS)

AMZN Studio head resigns, CREE revenue down Y/Y and SCSS earnings miss the mark

By Karl Utermohlen, InvestorPlace Writer

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Volume was light on a mixed day for U.S. equities that saw healthcare stocks rise 1.3%, while financials slipped 0.6%. The S&P 500 Index gained 0.1%, the Dow Jones Industrial Average edged 0.2% higher and the Nasdaq Composite lost a fraction.

3 Stocks to Watch on Wednesday: Amazon.com, Inc. (AMZN), Cree, Inc. (CREE) and Select Comfort Corp. (SCSS)Several companies made headlines after hours, including Amazon.com, Inc. (NASDAQ:AMZN), Cree, Inc. (NASDAQ:CREE) and Select Comfort Corp. (NASDAQ:SCSS).

Amazon.com, Inc. (AMZN)

Amazon found itself in the midst of some controversy late yesterday.

The company announced that its Studios head Roy Price has resigned from the e-commerce retailer just five days after being placed on a “leave of absence” after a producer accused him of sexual harassment.

Isa Hackett, a producer of the Amazon series The Man in the High Castle made the allegations. Albert Cheng took over as interim head of the studio during the leave of absence and he’ll remain on the position.

The accusations come from an incident that reportedly took place in 2015. Hackett said that Price made some unwanted advances towards her and lewd comments during Comic-Con, despite her shooting him down.

The public accusations against Harvey Weinstein have paved the way for others in the industry to speak up. “I hope we all continue to inspire each other and ultimately create change,” Hackett said.

AMZN stock fell 0.1% after hours.

Cree, Inc. (CREE)

Cree shares took a hit after the company unveiled its latest quarterly results.

The company said it posted a first-quarter loss of $20 million, or 20 cents per share during the quarter. In the year-ago quarter, Cree said it earned $566,000, or a penny a share.

On an adjusted basis, the company brought in $4 million, or four cents per share, compared to the $15 million, or 15 cents per share, from the year-ago quarter. Analysts were expecting the company to earn four cents per share.

Cree’s revenue amounted to $360 million, a 3% decline from the $371 million it raked in during the first quarter of fiscal 2017. The figure was in line with Wall Street’s projection of $360 million.

For its second quarter, Cree sees its adjusted earnings in the range of a $1 million loss to a $4 million profit, or a penny loss per share to a profit of four cents per share. Analysts polled by FactSet see this figure as being a profit of seven cents per share.

Revenue is slated to be in the range of $340 million to $360 million, Cree reported. Analysts polled by FactSet are calling for a guidance of $369 million in revenue.

CREE stock fell 2.9% after the bell Tuesday.

Select Comfort Corp. (SCSS)

Select Comfort also had a weak quarter that saw its shares fall.

The mattress maker posted earnings of $25.6 million, amounting to 62 cents per share, which was just below the year-ago profit of $25.7 million, or 56 cents per share. Analysts were calling for earnings of 68 cents per share.

Revenue for Select Comfort were higher at $403 million, topping the year-ago sales of $368 million. Analysts polled by FactSet projected revenue of $414 million.

“Strong demand in the quarter for our revolutionary Sleep Number 360™ smart beds, higher than expected gross margins, and disciplined expense controls partially offset unexpected hurricane impacts,” said Shelly Ibach, president and CEO of Select Comfort.

Net sales surged by 9% to a quarterly record of $403 million, including a 6% growth from stores opened in the last twelve months, plus a 5% increase in comparable sales.

SCSS stock fell 3.5% after hours yesterday.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/stocks-watch-wednesday-amazon-com-inc-amzn-cree-inc-cree-select-comfort-corp-scss/.

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