The stock market enjoyed a welcome surge as Brexit fears were soothed. It looks increasingly likely that the U.K. will stay a member of the European Union — news that sent stocks higher, including a 0.6% improvement in the S&P 500, and a 0.7% bounce in the Dow Jones Industrial Average.
A couple of stocks — namely, CarMax, Inc (NYSE:KMX) and Lennar Corporation (NYSE:LEN) — were moving on quarterly earnings news, while Opko Health Inc. (NYSE:OPK) was shooting higher on a product approval.
Here’s a closer look at why KMX, LEN and OPK should all be on your radar today:
CarMax, Inc (KMX)
KMX shares are in a bit of trouble on Tuesday morning following a disappointing first-quarter report that saw both earnings and revenues fall short of Wall Street’s hopes.
Earnings of $175.4 million were off from the year-ago period’s $182 million, and on a per-share basis, that came to 90 cents — 2 cents shy of expectations. Sales ticked up by more than 2% to $4.13 billion, but that too wasn’t enough compared to estimates for $4.21 billion.
The icing on the cake was sale-store used unit sales, which grew an anemic 0.2% to miss expectations.
KMX shares were off more than 3% in Tuesday’s premarket trading, but particularly troubling should be the fact that the decline will come just as CarMax is trying to break through resistance at its 50-day moving average. Thus, we could be looking at a painful rejection in the next couple of days.
Lennar Corporation (LEN)
LEN stock should open about 3% or 4% higher after the company posted a fiscal Q2 beat on the top and bottom lines.
Sales of $2.75 billion were 15% higher year-over-year and beat Wall Street expectations for $2.6 billion. Earnings shot 20% higher to 95 cents per share, which easily cleared expectations for 87 cents per share.
Lennar had a number of other positives in this report, including 12% growth in deliveries (6,724 homes), 10% growth in new orders (7,962 homes) and 12% improvement in its backlog (to 9,014 homes). Operating margins ticked higher, too, to 13.9%.
LEN shares recently bounced off their 50-day MA and were challenging their 200-day MA prior to Tuesday’s release. Today’s move could have shares challenging previous YTD highs around $49.
Opko Health Inc. (OPK)
OPK shares were jumping early Tuesday after the company got a green light from the U.S. Food and Drug Administration for its hyperparathyroidism treatment.
Opko’s Rayaldee extended-release capsules are intended to treat secondary hyperparathyroidism (SHPT) — where the parathyroid glands secrete excess parathyroid hormone — in patients with late-stage chronic kidney disease. SHPT can cause low levels of calcium, with bone and joint pain as primary symptoms.
The details, from an Opko press release:
“Results from two 26 week placebo controlled, double blind phase 3 trials demonstrated that a larger proportion of stage 3 or 4 CKD patients with SHPT and vitamin D insufficiency achieved ≥30% reductions in plasma intact parathyroid hormone (iPTH) when treated with Rayaldee than with placebo. Vitamin D insufficiency was corrected in more than 80% of the patients receiving Rayaldeecompared with less than 7% of subjects receiving placebo. Mean serum calcium and phosphorus levels increased by 0.1 mg/dL during Rayaldee treatment compared to placebo treatment, but these changes were deemed clinically irrelevant. No differences in RAYALDEE’s efficacy or safety were observed between patients with stage 3 CKD or stage 4 CKD.”
OPK shares were up more than 7% in early Tuesday trading.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
