American Express's stock heads toward a four-month low
(9:16 AM ET) NEW YORK (MarketWatch) -- American Express's stock /zigman2/quotes/203805826/composite AXP +0.13% is on track to open at a four-month low, after the charge card company saidwith Costco Wholesale /zigman2/quotes/201191698/composite COST -0.32% will hurt profit and sales this year and next. The stock, a component of the Dow Jones Industrial Average, slumped dropped $6.11, or 7.1%, in premarket trade, to trade below $80 for the first time since Oct. 15. That decline would shave off 39 points from the Dow. "While we expect the negative impact on earnings and revenue growth in 2015 and 2016, we remain confident in our ability to achieve our 12% to 15% EPS growth target over the moderate to long-term," said Chief Executive Kenneth Chenault in a conference call, according to a FactSet transcript.
World Wrestling's stock surges after better-than-expected results
(8:45 AM ET) NEW YORK (MarketWatch) -- Shares of World Wrestling Entertainment Inc. /zigman2/quotes/207109722/composite WWE -0.74% surged 8.5% in premarket trade Thursday, after the entertainment and media company reported better-than-expected fourth-quarter results. For the quarter ended Dec. 31, net losses narrowed to $1.6 million, or 2 cents a share, from $7.9 million, or 10 cents a share, in the year-earlier period. Excluding non-recurring items, the per-share loss was 1 cent, beating the FactSet consensus loss estimate of 8 cents. Revenue rose to $140.5 million from $118.4 million, above the FactSet consensus of $134.4 million, boosted by strength in its network and television businesses. The company said WWE Network hit one million subscribers on Jan. 27. The stock has gained 4.5% over the past three months through Wednesday, while the S&P 500 has advanced 1.5%.
TripAdvisor stock climbs 15% despite cautious analysts
(8:37 AM ET) NEW YORK (MarketWatch) - Shares of TripAdvisor Inc. /zigman2/quotes/206118480/composite TRIP -0.79% climbed 15% in premarket trade Thursday despite a wave of cautiously optimistic notes from analysts. Analysts were mostly optimistic on the travel booking site's quarterly revenue growth but concerned about high costs and profitability. Pacific Crest maintained a sector perform rating on the stock. Cantor Fitzgerald maintained a hold rating but lowered its price target to $84. J.P. Morgan maintained a neutral rating and $75 target, while Raymond James reiterated a market perform rating but lowered estimates. TripAdvisor reported stronger-than-expected revenues late Wednesday and said it expected sales to grow in the high 20% range for fiscal 2015, however earnings per share fell slightly below expectations. Meanwhile, shares of rivals Expedia Inc. /zigman2/quotes/202291990/composite EXPE -1.33% and Orbitz Worldwide Inc.also soared in pre-market trade after Expedia said it would buy Orbitz for $1.6 billion. Shares of TripAdvisor were on track to open around $77.60, the highest open since Nov. 4.
Kellogg Co. shares fall 2% after fourth quarter earnings below analyst expectations
(8:20 AM ET) NEW YORK (MarketWatch) -- Kellogg Co. /zigman2/quotes/209631250/composite K -0.46% shares fell 2% in pre-trade Thursday after the company reported fourth- quarter earnings below expectations. The company reported a net loss of $293 million, or 82 cents per share, down from net income of $818 million, or $2.26 a share in the year-earlier period. The company reported adjusted earnings per share of 84 cents, below the FactSet consensus of 93 cents. The company reported sales of $3.51 billion, slightly up from $3.50 billion in the year-earlier period but below the FactSet consensus of $3.627 billion. Kelloggg said it sees its 2015 net sales unchanged compared to 2014.
Dr. Pepper beats sales, matches profit forecasts
(8:15 AM ET) NEW YORK (MarketWatch) -- Dr. Pepper Snapple Group Inc.reported fourth-quarter net earnings that fell to $150 million, or 77 cents a share, from $156 million, or 78 cents a share, in the year-earlier period. Excluding non-recurring items, adjusted per-share earnings were 88 cents, matching the FactSet consensus estimate. Revenue rose 3% to $1.51 billion from $1.46 billion, above the FactSet consensus of $1.47 billion, as BCS volume increased 2%. For 2015, the beverage company expects adjusted per-share earnings in the range of $3.80 to $3.88, below analyst forecasts of $3.91. The stock was little changed in premarket trade. It has run up 14% over the past three months, while the S&P 500 has gained 1.5%.
Mobile Mini raises dividend, beat profit and sales expectations
(7:41 AM ET) NEW YORK (MarketWatch) -- Mobile Mini Inc.said on Thursday that it raised its quarterly dividend by 10% to 18.7 cents a share from 17 cents. The new dividend will be paid out on March 19 to shareholders of record on March 5. The portable storage company also reported a fourth-quarter net profit that fell to $6 million, or 13 cents a share, from $11 million, or 24 cents a share, a year ago. Excluding non-recurring items, per-share earnings were 37 cents. Revenue rose to $123.2 million from $106.8 million. The results beat the FactSet consensus estimates for per-share earnings of 36 cents and revenue of $116.6 million. The stock, which was still inactive in premarket trade, has lost 15% over the past three months, while the S&P 500 has gained 1.5%.
McGraw Hill profit hit by legal charges
(7:29 AM ET) NEW YORK (MarketWatch) -- McGraw Hill Financial Inc.said Thursday it had a net loss of $846 million, or $3.11 a share, after earnings of $171 million, or 62 cents a share, in the year-earlier period, weighed down by the costs of a settlement with the U.S. government. The owner of Standard & Poor's Ratings Service recently reached a settlement with the U.S. Department of Justice and state attorneys general to resolve charges it misrated mortgage-related securities in the run-up to the 2008 financial crisis. Excluding those charges and costs, the company had EPS of 95 cents, topping the FactSet consensus of 90 cents. Revenue rose to $1.29 billion from $1.21 billion, also ahead of the FactSet consensus of $1.281 billion. The company said it is raising its quarterly dividend to 33 cents a share from 30 cents, with the new dividend to be paid on March 11. The company said it expects 2015 EPS of $4.35 to $4.45 and revenue growth in the mid single digits. Shares were not yet active in premarket trade, but are up 8.5% in the last three months, while the S&P 500 is up 1.5%.
Avon Products reports wider loss, sales decline
(7:21 AM ET) NEW YORK (MarketWatch) -- Avon Products Inc.reported on Thursday a fourth-quarter net loss that widened to $330.7 million, or 75 cents a share, from $69.1 million, or 16 cents a share, in the year-earlier period. The beauty products company said non-recurring items, such as a charge resulting from lower projected foreign course income, reduced earnings during the period by 95 cents a share. In addition, the negative effect of currency moves had a 22 cents-a-share impact on earnings. Revenue fell 12% to $2.34 billion from $2.67 billion. The FactSet consensus was for adjusted per-share earnings of 25 cents and revenue of $2.35 billion. For 2015, the company expects currency moves to reduce revenue by 12 percentage points. The stock, which gained 1.1% in premarket trade, has lost 19% over the past three months through Wednesday, while the S&P 500 has gained 1.5%.
Tesla market cap in 10 years could be 'basically the same as Apple's is today' CEO Elon Musk says
(2:23 AM ET) SAN FRANCISCO (MarketWatch) - Tesla /zigman2/quotes/203558040/composite TSLA -0.65% CEO Elon Musk said the company's market cap in 10 years could be "basically the same as Apple's is today." Musk made the comments on a conference call with analysts following. Musk said the estimate was based on "back of the envelope" calculations including an assumption of a price-to-earnings ratio of 20. Apple /zigman2/quotes/202934861/composite AAPL -0.85% recently became the first company to top $700 billion in market capitalization. Tesla's current market capitalization is roughly $27 billion.