GP: A Tesla Model 3 automobile is on display during the first press day of the Paris Motor Show at the Parc des Expositions at the Porte de Versailles on October 2, 2018 in Paris. The Paris Motor Show will present the latest models from the world’s leading car manufacturers at the Paris Expo Exhibition Center from October 4 to 14, 2018.
Chesnot | Getty Images News | Getty Images
Check out the companies making headlines in midday trading on Thursday.
Tesla — Shares of Elon Musk’s automaker rose over 5%, reversing early losses after the company announced it plans to offer $2 billion of common stock. The company will offer 2.65 million Tesla shares through underwriters Goldman Sachs and Morgan Stanley. Musk himself will buy as much as $10 million of stock in the offering, while Tesla board member Larry Ellison will purchase up to $1 million.
Equifax — Shares of Equifax climbed more than 5% after the company reported fourth-quarter earnings of $1.53 a share that topped Wall Street’s expectations of $1.49 a share according to FactSet. Additionally, Equifax issued a first quarter earnings forecast notably above analysts’ expectations, as well as a higher than expected revenue forecast for the full year.
Alibaba – The internet giant’s stock slid more than 1% despite the company’s stronger-than-expected third quarter results. The China-based company said that results were boosted by strength in e-commerce and cloud computing. Alibaba reported adjusted EPS of CNY 18.19, which was ahead of the CNY 15.75 analysts had been calling for, according to estimates from FactSet. Revenue also topped expectations, coming in at CNY 161.45 billion versus the consensus estimate of CNY 159.28 billion.
Cisco – Shares of the tech name slid more than 5% after the company’s revenue continued to decline in the second quarter. The company did beat top and bottom line estimates, but revenue slid 4% year-over-year. Cisco’s guidance was upbeat, although on the earnings call the company said that the forward-looking numbers were not factoring in potential supply chain disruptions from the coronavirus outbreak.
Redfin — Redfin’s stock climbed 14% after the company beat Wall Street’s expectation handily for the fourth quarter on both the top and bottom lines according to FactSet. Redfin also issued a first quarter revenue forecast of between $179 million and $188 million, above the $178.7 million analysts surveyed by FactSet anticipated.
Applied Materials — Shares of Applied Materials rose more than 4% after the company reported better than expected first-quarter earnings. Also, the company forecast the second quarter would be better than analysts expect as well, with strong growth on both the top and bottom lines thanks to strength in Applied Materials’ semiconductor revenue.
Kraft Heinz — Shares of Kraft Heinz tumbled more than 8% after the food giant reported a sales decline in the fourth quarter despite higher prices. Net sales fell 5.1% to $6.54 billion, missing Wall Street’s estimates of $6.61 billion. The company also disclosed impairment charges of $666 million, adding it would be pushing back the unveiling of its turnaround plan from March to May.
MGM Resorts — Shares of MGM Resorts plunged more than 5% after Chief Executive Jim Murren said he will step down after the casino operator’s board picks a successor. MGM also reported worst-than-expected earnings and revenue for the fourth quarter. Meanwhile, the company pulled its 2020 forecast, saying it could not yet assess the full impact of the coronavirus.
Twilio — Twilio climbed nearly 3% after the cloud communications company reported fourth-quarter results that beat analyst expectations. Twilio posted a profit of 4 cents per share on revenue of $331.2 million. Analysts polled by FactSet expected earnings per share of 1 cent on sales of $312.9 million. The company’s revenue represented a 62% year-over-year surge.
Tempur Sealy — Shares of the bedding maker climbed 3% after it reported fourth-quarter earnings of $1.37 a share, above what analysts surveyed by FactSet expected at $1.17 a share. Tempur Sealy forecast strong cash flow for 2020, as well.
NetApp — NetApp shares dropped more than 9% on the back of disappointing quarterly numbers. The cloud data services company reported a profit of $1.16 per share while analysts polled by Refinitiv expected earnings of $1.18 per share. The company’s earnings guidance for fiscal fourth quarter also disappointed investors.
Huntington Ingalls — Shares of Huntington Ingalls Industries sank more than 6% after the shipbuilder missed Wall Street estimates for its fourth quarter results. The defense contractor reported $702 million in revenue, while analysts expected $709 million in revenue, according to FactSet. The company’s margin for adjusted operating income also declined to 8.9% from 9.7% in the same quarter the previous year.
Hanesbrands — Shares of Hanesbrands slipped nearly 3% after the clothing maker reported fourth-quarter earnings and revenue in line with analysts’ expectations. The company’s first quarter earnings forecast disappointed, however, and Hanesbrands guidance for full year revenue came in below what analysts surveyed by FactSet anticipated.
L Brands — L Brands’ stock fell 2.4% on Thursday as the upscale apparel brands company continued to be battered by the coronavirus outbreak. The company has several flagship stores in China and about 20% of its product is sourced from the country, according to D.A. Davidson. Shares of L Brands are up more than 30% this year amid news that the company is exploring selling off Victoria’s Secret.
– CNBC’s Pippa Stevens, Yun Li, Jesse Pound and Fred Imbert contributed to this report.