Wednesday proved to be a light day of trading that saw the dollar’s value diminish, and oil prices fall by 2.5%. However, there was more good for stocks than bad, as the S&P 500 improved by 0.3%, while the Dow Jones Industrial Average was 0.2% higher at day’s end.
Things look cheery for at least a trio of stocks heading into Thursday’s action. Chesapeake Energy Corporation (NYSE:CHK), Kohl’s Corporation (NYSE:KSS) and Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) are all making big moves in early Thursday trading.
Here’s what’s moving these stocks ahead:
Chesapeake Energy Corporation (CHK)
CHK shares look to open Thursday with a big move higher amid news that Chesapeake Energy is dropping its business at the Barnett Shale. Chesapeake faced a number of obstacles in the Texas location, including rising fuel prices and credit downgrades. The natural gas provider will hand over its its assets to Saddle Barnett Resources LLC
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Chesapeake will not rake in any proceeds from its Barnett assets, which are worth about $1 billion. However, the move will free the company from about $1.9 billion worth of commitments in the natural gas reservoir. The company also will end its deal with Williams Partners LP (NYSE:WPZ), shelling out $400 million to do so.
Chesapeake expects its operating income to increase by $200 million to $300 million annually for the rest of year, and through 2019.
CHK stock was surging more than 6% higher on Thursday morning.
Himax Technologies, Inc. (ADR) (HIMX)
HIMX shares are making a similar move this morning on an earnings beat after reporting that quarterly profits doubled year-over-year.
The Taiwanese fabless semiconductor company earning $19.8 million, or 11.5 cents per share — 124% better than the year-ago period, and enough to tackle analyst expectations for 10 cents per share. Meanwhile, revenue growth of 11.5% put sales at $201.1 million, which also beat the Street, which expected $198.61 million.
The company now is looking for third-quarter adjusted earnings to come in between 10 to 12 cents per share, with gross margins flat to slightly lower YoY.
Investors cheered the news, sending HIMX up 6% before Thursday’s bell.
Kohl’s Corporation (KSS)
KSS shares complete a trio of positive morning movers, as Kohl’s also beat the Street with its Thursday morning Q2 report.
Kohl’s grew profits by 7.7% to $140 million, or 77 cents per share. On an adjusted basis, profits of $1.22 per share were more than enough to top FactSet consensus expectations for $1.03. Revenues were off slightly to $4.18 billion — thanks in part to a nearly 2% drop in comps — but they edged estimates for $4.16 billion.
Guidance was a mixed bag, as Kohl’s actually lowered adjusted earnings outlook to $3.80-$4 per share from $4.05-$4.25, but the midpoint still was enough to top expectations for $3.84.
Thanks to the beat, share should make a healthy bounce off the 50-day moving average at $38. Premarket gains of about 9% should put KSS stock a few percent below the 200-day moving average at $42.68.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
