Financial News
Microsoft stock spikes after earnings forecast beats expectationsExternal Link

Microsoft Corp. shares jumped to a 4% gain in after-hours trading Thursday after the tech giant supplied its forecast for the first quarter of the 2019 fiscal year. Shares had been up 1% after the company's fiscal fourth-quarter earnings report showed stronger-than-expected profit and sales. Microsoft provided revenue guidance for its different segments on the conference call, predicting $9.25 billion to $9.45 billion for "Productivity and Business Processes"; $8.15 billion to $8.35 billion for "Intelligent Cloud"; and $9.95 billion to $10.25 billion in "More Personal Computing." In total, that suggests first-quarter revenue of $27.35 billion to $28.05 billion. Analysts on average were projecting revenue of $27.4 billion, according to FactSet. Microsoft did not give an earnings projection nor a full-year forecast, though Chief Financial Officer Amy Hood said cost of goods sold in the first quarter was expected to be $9.5 billion to $9.7 billion, operating expenses would be $9.2 billion to $9.3 billion, and income and expense is expected to be about $100 million to the negative side.

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Thu, 19 Jul 2018 22:18:15 GMT
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FTD top execs leave amid restructuring; board pondering saleExternal Link

FTD Cos. Inc. announced the departure of its chief executive, chief operating officer and chief marketing officer Thursday afternoon, and said the board was reviewing strategic alternatives while immediately restructuring the company. The beleaguered floral company said John Walden had stepped down as president and CEO effective immediately and would be replaced on an interim basis by General Counsel Scott Levin. The company also said it would eliminate the COO position, previously held by Simha Kumar, and that CMO Jeffrey Severts would leave the company. In addition to Levin, Chief Information Officer Jay Topper will remain with a new title of chief digital officer. The company said that it had hired Moelis & Co. to assist with a strategic review that will include the possibility of "a sale or merger of the company." In addition, the company said it was restructuring in an effort to save $18 million to $23 million in annualized costs in 2019, though it did not say how many employees would be let go. FTD said it expects to report second-quarter net income of $1.5 million to $4.5 million on revenue of $299 million to $301 million, well below the average analyst estimate of $11 million in profit and $320 million in sales, according to FactSet. The company also reduced its forecast for annual 2018 profit and revenue. FTD stock dropped 17% in after-hours trading following the announcement. The shares have plummeted 77.4% in the past year, as the S&P 500 index has gained 13.8%.

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Thu, 19 Jul 2018 21:30:56 GMT
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Skyworks Solutions shares gain 4% on earnings, dividend increaseExternal Link

Shares of Skyworks Solutions Inc. rose nearly 4% late Thursday after the semiconductor company reported fiscal third-quarter earnings above Wall Street expectations and said its board approved a dividend increase. Skyworks said it earned $286.5 million, or $1.57 a share, in the quarter, compared with $246.2 million, or $1.32 a share, in the year-ago period. Adjusted for one-time items, the company earned $1.64 a share, compared with $1.57 a share a year ago. Revenue fell to $894.3 million, from $900.8 million a year ago. Analysts polled by FactSet had expected adjusted earnings of $1.60 a share on sales of $889 million. The company's board declared a cash dividend of 38 cents a share, a 19% increase. The dividend is payable on Aug. 28 to shareholders of record on Aug. 7. The company shares ended the regular session up 0.4%.

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Thu, 19 Jul 2018 21:09:14 GMT
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PTC Therapeutics stock spikes on $200 million acquisition of Agilis BiotherapeuticsExternal Link

PTC Therapeutics said Thursday afternoon that it plans to acquire gene-therapy startup Agilis Biotherapeutics for $200 million plus incentives, and shares spiked higher. PTC said the five-year-old company has a promising biologics candidate that seeks to treat Aromatic L-Amino Acid Decarboxylase, or AADC, deficiency, a rare disorder of the central nervous system. "Based on multiyear data from initial clinical studies with the AADC gene therapy treatment candidate, PTC plans to submit a Biologics License Application (BLA) to the FDA in 2019," the company stated. Agilis has other gene-therapy candidates focused on rare diseases as well, PTC claimed. PTC has agreed to pay $50 million in cash and $150 million in stock for Agilis, with an estimated maximum limit of 9.34 million shares; if that share count doesn't meet the $150 million target, the rest will be made up in cash. The company also promised $60 million in development milestones over the next two years, with one of the conditions being the FDA's acceptance of the BLA, as well as up to $685 million in success-based and commercial milestone incentives. PTC expects the deal to close in the third quarter, and the boards of both companies have approved the transaction. PTC stock was halted before the announcement, and jumped 15% in after-hours trading after the halt was lifted, though gains settled closer to 10% later in extended trading. Shares have already lifted 119.1% this year, as the S&P 500 index has gained 5.3%.

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Thu, 19 Jul 2018 20:47:00 GMT
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Capital One shares on the rise after earnings beatExternal Link

Shares of Capital One Financial Corp. rose 1% late Thursday after the bank holding company reported second-quarter earnings above Wall Street forecasts. Capital One said it earned $1.9 billion, or $3.71 a share, in the quarter, compared with $1 billion, or $1.94 a share, in the second quarter of 2017. Adjusted for one-time items, Capital One earned $3.22 a share, compared with $1.96 a share a year ago. Net revenue rose to $7.2 billion, from $6.7 billion a year ago. Analysts polled by FactSet had expected adjusted earnings of $2.64 a share on sales of $6.93 billion. "We saw credit improvement across our businesses, and growth math is now helping overall domestic credit card trends," founder and Chief Executive Richard D. Fairbank said in a statement. Shares ended the regular trading day down 1.8%.

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Thu, 19 Jul 2018 20:40:19 GMT
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