3 Stocks to Watch on Tuesday: Cognex Corporation (CGNX), Tenet Healthcare Corp (THC) and Tesla Inc (TSLA)

CGNX stock plummeted, THC total admissions up, TSLA burning through cash quickly

By Karl Utermohlen, InvestorPlace Writer

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Monday was a down day for U.S. equities as telecoms fell 2.7%, although April has been the first positive month of the last three. The S&P 500 Index fell 0.8%, the Dow Jones Industrial Average fell 0.6% and the Nasdaq Composite declined 0.8% by day’s end.

3 Stocks to Watch on Tuesday: Cognex Corporation (CGNX), Tenet Healthcare Corp (THC) and Tesla Inc (TSLA)It was a busy afternoon as Cognex Corporation (NASDAQ:CGNX) and Tenet Healthcare Corp (NYSE:THC) reported their quarterly earnings results, while Tesla Inc (NASDAQ:TSLA) may be broke by the end of the year.

Here’s how they did:

Cognex Corporation (CGNX)

Cognex had a difficult quarter that saw its shares sink late Monday.

The company unveiled a revenue increase of 22% compared to the year-ago quarter to $169.9 million, which was below the Wall Street consensus estimate of $171 million, according to data compiled by Thomson Reuters.

Cognex also missed expectations in the earnings front as the company brought in 18 cents per share on an adjusted basis during its first quarter of fiscal 2018. Analysts were calling for adjusted earnings of 20 cents per share, according to Thomson Reuters.

The company predicts that its second quarter will bring in revenue in the range of $200 million to $210 million, below the consensus estimate of $216.07 million. Cognex had no debt at the end of its first quarter.

CGNX stock plummeted about 17.8% after the bell.

Tenet Healthcare Corp (THC)

Tenet Healthcare had a strong quarter that lifted shares late yesterday.

The healthcare company unveiled first-quarter earnings of 57 cents per share, compared to the loss of 27 cents per share it brought in during the year-ago period. Its revenue tallied up to $4.7 billion, topping analysts’ expectations of $4.59 per share.

Tenet Healthcare added that the company’s hospital patient revenue was $3.6 billion for the first three months of fiscal 2018, which was a 6.7% gain compared to the year-ago quarter. The company’s total admissions for the period were up by 0.3% year-over-year to 179,208.

Tenet Healthcare also increased its 2018 guidance as the company projects an increase in net income in continuing operations year-over-year for the quarter. The company managed to reduce its debt during its most recent period.

THC stock gained about 5.2% after hours Monday.

Tesla Inc (TSLA)

Tesla may be broke by the end of the year.

According to Bloomberg, the electric car maker is spending about $6,500 a minute, which is an alarming piece of news as the company readies itself for its first-quarter earnings report, which many expect to be negative.

While it is normal for car companies to spend large sums of cash to keep its business running, turning a profit is still important. Tesla has not posted a yearly profit since its IPO in 2010.

The market believes that the company will run out of cash before the end of the year as the company only has $3.5 billion on had, plus lines of credit. CEO Elon Musk recently said that there is no capital raise coming and that Tesla will start bringing in more than it spends later this year.

TSLA shares fell about 0.2% after the bell Monday.

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/2018/05/3-stocks-watch-tuesday-cognex-corporation-cgnx-tenet-healthcare-corp-thc-tesla-inc-tsla/.

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