Investors like FedEx’s (FDX) earnings. A lot. So much so that they’ve pushed its shares up 10.83% to $159.90 at 1:38 p.m. And if FedEx holds onto that gain it would be its biggest one-day move since Sept. 19, 2002, when it climbed 11.59%.
Christopher Dilts/Bloomberg News
Why the response? RBC’s John Barnes and team write that there’s “no weakness here!”–and yes, they used an exclamation point–when describing FedEx’s earnings:
EPS from continuing operations of $2.51 were nicely ahead of our and consensus estimates ($2.32 and $2.34, respectively). Share repurchases, tax rate, and a modest fuel tailwind were all positives relative to our expectations, but this would have been an earnings beat without these
FDX raised its FY/16 EPS guidance range to $10.7010.90 from $10.4010.90, much better than our forecast for management to revise guidance to $10.4010.60. The new outlook varies from our prior expectations in several key ways. First, the company is not feeling much effect from a slower economic backdrop. Second, its internal initiatives should result in significant margin improvement during 4FQ/16 (Express ~12%, Ground 15%). Third, share repurchases are running ahead of our forecast.
learn stock trading: St. Jude Medical, Inc.(STJ)
- [By Emily Stewart]
Paulson picked up 45,500 shares of St. Jude Medical (STJ) . The stake is worth $3.5 million as of the end of the second quarter.
St. Jude Medical develops, manufactures and distributes cardiovascular medical devices for cardiac rhythm management, cardiovascular, atrial fibrillation therapy areas and neurostimulation medical devices for the management of chronic pain. It has a $23.6 billion market cap and trades at a P/E of 36.03.
learn stock trading: ThyssenKrupp AG (TYEKF)
- [By Matthew DiLallo]
In addition, the company announced that it has agreed to acquire a steel plant in Brazil from ThyssenKrupp (NASDAQOTH:TYEKF) for $1.3 billion. While that plant has had its share of problems in the past, Ternium is getting it for a good value, and it has upside potential. The company paid slightly less than five times EBITDA (earnings before interest, taxes, depreciation, and amortization) for the facility. As the following chart shows, that’s below the value that steel-company stocks trade for these days:
learn stock trading: Hatteras Financial Corp(HTS)
- [By Ben Levisohn]
Hatteras Financial (HTS) has jumped 9.4% to $15.60 after agreeing to be purchased byAnnaly Capital Management (NLY) for $1.5 billion.Annaly Capital Management has dropped 1.1% to $$10.30.
learn stock trading: Westlake Chemical Corporation(WLK)
- [By Monica Gerson] Related SAIC Q4 Earnings Conference Call: Full Transcript 7 Stocks You Should Be Watching Today Notable earnings before Monday's open (Seeking Alpha) Related WLK Benzinga's Weekend M&A Chatter Mid-Afternoon Market Update: Dow Falls Over 150 Points; Crude Oil Down 2.5% Westlake Chemical (WLK) CEO Albert Chao to Acquire Axiall Corporation – Earnings Call Transcript (Seeking Alpha)
Some of the stocks that may grab investor focus today are:
learn stock trading: AVEO Pharmaceuticals, Inc.(AVEO)
- [By Lisa Levin]
AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO) shares shot up 69 percent to $1.23 after the company reported positive CHMP opinion for tivozanib for the treatment of advanced renal cell carcinoma.