Stock Market Wrapup Aug. 8th
Stocks finished the session stronger on the heels of upbeat technology earnings as well as a lessened fear over the current worrisome credit markets. At the close, all three major indexes closed higher. The tech-heavy Nasdaq led the way with a 2% gain. Treasuries fell the most in a month, with the benchmark 10-year note ending the trading day yielding 4.86%.
In earnings news, the shares of luxury homebuilder Toll Brothers (NYSE: TOL - News) rose 6% after the company said third-quarter preliminary results were better than analyst expectations. For Q3, it sees revenues falling -21% to $1.21 billion, higher than estimates of $1.08 billion. The above-forecast revenues for the period masked a quarter in which the company is still feeling the brunt of the housing market slowdown. Net signed contracts, a measure of future activity, fell -31% to $727.1 million. Cancellations rose 23.8%, while backlog fell -34%. Other homebuilder stocks as well as housing-related companies rose sharply on the news.
Number-three mobile phone carrier Sprint Nextel (NYSE: S - News) posted a -94% drop in second-quarter earnings. Earnings from continuing operations were $19 million, or a penny a share, down from $370 million, or 10 cents a share, in the year-ago period. On an adjusted basis, it earned 25 cents a share, down from 32 cents in the same period last year. Revenues rose 2% to $10.16 billion. Analysts were looking for earnings of 22 cents on sales of $10.21 billion. The company reiterated its full-year revenue guidance of $41-42 billion. Shares slipped -2.2% after the carrier said customer cancellations may hurt its current quarter's growth. Subscribers can read our analysis of Sprint Nextel in today's issue.
Online booking agent Priceline.com (Nasdaq: PCLN - News) shares soared 22.2% after the company said its net income more than doubled from year-ago levels. For its second quarter, it posted net income of $34.6 million, or 79 cents a share, up from $12.5 million, or 28 cents per share, a year ago. Sales climbed 16% to $355.9 million. Excluding one-time items, it earned $1.11 a share. Analysts were looking for 89 cents a share. The company also boosted its third-quarter earnings forecast to a range of $1.21-1.31 a share; analysts were looking for the company to earn $1.07 per share.
Ralph Lauren (NYSE: RL - News) shares plunged -11.8% after the retailer and home accessories company missed first-quarter numbers. It reported net income of $88 million, or 82 cents a share, up from $80 million, or 74 cents a share, last year. Sales reached $1.07 billion. Analysts on average were looking for earnings of 85 cents a share. Looking forward, the company cut its earnings forecast, which includes charges, to a range of $3.64-3.74 a share, down from $3.70-3.80 a share. The company cited a higher tax rate of 39% compared to 38%.
Number-three mobile phone carrier Sprint Nextel (NYSE: S - News) posted a -94% drop in second-quarter earnings. Earnings from continuing operations were $19 million, or a penny a share, down from $370 million, or 10 cents a share, in the year-ago period. On an adjusted basis, it earned 25 cents a share, down from 32 cents in the same period last year. Revenues rose 2% to $10.16 billion. Analysts were looking for earnings of 22 cents on sales of $10.21 billion. The company reiterated its full-year revenue guidance of $41-42 billion. Shares slipped -2.2% after the carrier said customer cancellations may hurt its current quarter's growth. Subscribers can read our analysis of Sprint Nextel in today's issue.
Online booking agent Priceline.com (Nasdaq: PCLN - News) shares soared 22.2% after the company said its net income more than doubled from year-ago levels. For its second quarter, it posted net income of $34.6 million, or 79 cents a share, up from $12.5 million, or 28 cents per share, a year ago. Sales climbed 16% to $355.9 million. Excluding one-time items, it earned $1.11 a share. Analysts were looking for 89 cents a share. The company also boosted its third-quarter earnings forecast to a range of $1.21-1.31 a share; analysts were looking for the company to earn $1.07 per share.
Ralph Lauren (NYSE: RL - News) shares plunged -11.8% after the retailer and home accessories company missed first-quarter numbers. It reported net income of $88 million, or 82 cents a share, up from $80 million, or 74 cents a share, last year. Sales reached $1.07 billion. Analysts on average were looking for earnings of 85 cents a share. Looking forward, the company cut its earnings forecast, which includes charges, to a range of $3.64-3.74 a share, down from $3.70-3.80 a share. The company cited a higher tax rate of 39% compared to 38%.
By the BullMarket.com Staff
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