3 Stocks to Watch on Wednesday: Fossil Group Inc (FOSL), LendingClub Corp (LC) and Take Two Interactive Software Inc (TTWO)

FOSL posts weak guidance, LC revenue misses estimates and TTWO shatters earnings outlook

By Karl Utermohlen, InvestorPlace Writer


The U.S. market took a dip Tuesday following a five-day winning streak as gold lost 0.5% and oil fell 0.3%. The S&P 500 Index lost a fraction, the Dow Jones Industrial Average gained a fraction and the Nasdaq Composite posted a 0.3% loss.

3 Stocks to Watch on Wednesday: Fossil Group Inc (FOSL), LendingClub Corp (LC) and Take Two Interactive Software Inc (TTWO)Fossil Group Inc (NASDAQ:FOSL), LendingClub Corp (NYSE:LC) and Take Two Interactive Software Inc (NASDAQ:TTWO) all posted their quarterly earnings results after hours Tuesday.

Here’s how they did:

Fossil Group Inc (FOSL)

Fossil shares on the company’s weak guidance for the current quarter.

For its fourth quarter, the watch manufacturer posted an outlook of revenue in the range of $854 million to $926 million, while Wall Street predicts revenue of $952 million.

Fossil sees its earnings falling well below expectations as well, slated to come in between a four-cent loss per share and a profit of 51 cents per share. Analysts are calling for earnings of $1.33 per share.

The news overshadowed a strong quarter for the company as its earnings came in at a loss of 11 cents per share, topping the Zacks Consensus Estimate of a loss of 14 cents per share.

Fossil’s quarterly net loss was $5.4 million. In the revenue front, the company raked in $689 million, topping the Wall Street projection of $653.24 million, despite declining 7% year-over-year.

“So far this year, we have tripled our wearables business and continue to see these amazing new products materially improve the trajectory of our watch business,” said CEO Kosta Kartsotis.

FOSL shares plummeted as much as 12% after the bell.

LendingClub Corp (LC)

LendingClub also took a hit after hours on its results.

After the bell, the company unveiled earnings at a loss of two cents per share for its third quarter, missing the consensus estimate of a profit of three cents per share, according to Thomson Reuters.

In the same period a year ago, Lending Club posted a loss of nine cents per share. The company’s revenue came in at $154 million, missing analysts’ expectations of $157.03 million. Revenue surged 34.4% year-over-year.

The company surpassed the 2-million borrowers mark on its marketplace. It also launched its fifth-generation credit model, which enhances the capabilities of its borrowers to give fair and responsible access to credit.

“LendingClub’s strong growth and record revenue are clear indicators of our platform’s appeal to both borrowers and investors,” said Scott Sanborn, LendingClub CEO.

“Responsibly helping more people get access to the credit they deserve is why we exist as a business and hitting new milestones on both sides of the marketplace is a testament to the power of our business model,” he added.

LC stock took a nosedive after hours, falling as much as 22%.

Take Two Interactive Software Inc (TTWO)

Take Two Interactive Software unveiled its latest quarterly earnings results late Tuesday.

Shares were soaring after the company posted its second-quarter earnings, which came in at $1.09 per share. Analysts were calling for earnings of 74 cents per share.

The three months that ended the first half of fiscal 2018 also yielded revenue of $577 million, beating Wall Street’s projection of $510.31 million. Digitally delivered revenue surged 31% to $302.9 million.

For its fiscal year, Take Two Interactive Software forecasts that it will bring in between $2.81 to $3 per share in profit. Analysts are calling for earnings of $2.22 per share.

Revenue is also slated to be strong as the company’s guidance is for sales in the range of $1.93 billion to $2.03 billion. The Wall Street consensus estimate is $1.76 billion in revenue.

Net bookings are slated to be between $440 million to $490 million for the period.

TTWO stock posted a 8.1% gain after the market closed on Tuesday.

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/2017/11/stocks-watch-wednesday-fossil-group-inc-fosl-lendingclub-corp-lc-take-two-interactive-software-inc-ttwo/.

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