NEW YORK, May 12, 2017 /PRNewswire/ --
U.S. equity markets closed lower on Thursday, partially due the weaker-than-expected earnings reports and new concerns that the current presidential administration's pro-business agenda may face delays due to recent developments with the ousting of FBI Director James Comey. Positive developments such as the weekly jobless were overshadowed. Jobless claims fell by 2,000 to 236,000, while continuing claims fell to the lowest level since November 1988. Priceline Group Inc. (NASDAQ: PCLN), Electronic Arts Inc. (NASDAQ: EA), Macy's, Inc. (NYSE: M), Nvidia Corporation (NASDAQ: NVDA), Snap Inc. (NYSE: SNAP)
"Both corporate earnings and economic data were pretty good in the first quarter and underpinned the rally so far. But with earnings season almost over, we might see some sideways moves until June when the Fed is likely to raise rates," said Mark Kepner, managing director of sales and trading at Themis Trading, MarketWatch reported.
Make sure you check out last week's Video Recap, as we reported LIVE from the floor of the NYSE in New York City: https://www.youtube.com/watch?v=bEKiOkT4UQg Topics: Financial News, Business News, Stock News, and Market News. Apple Inc., Tesla Inc., Twilio Inc., Advanced Micro Devices Inc. Delphi Automotive PLC.
Priceline Group Inc. (NASDAQ: PCLN) shares plummeted more than 5% after online travel company reported a mixed quarterly earnings report. For the first quarter 2017 Priceline reported GAAP net income and fully diluted EPS both increased by 22%. Non-GAAP net income per share was $9.88, up 7% versus the prior year, exceeding the company's guidance for the quarter and FactSet consensus of $8.82. Priceline's guidance however was lower than expected. The company projected adjusted earnings per share in a range of $13.30 to $14 for the second quarter, below the average estimate of $15 a share.
Electronic Arts Inc. (NASDAQ: EA) shares surged after the company reported earnings for the 4th quarter 2017 fiscal year. Net revenue for the year was $4.8 billion, cost of revenue $1.3 billion, and operating income of $1.2 billion. Most importantly, these results enabled the company to deliver record operating cash flow of almost $1.4 billion. EA also returned over half a billion dollars to shareholders through a repurchase program in fiscal 2017.
Macy's, Inc. (NYSE: M) on Thursday reported first-quarter revenue that missed analysts' estimates, sending the shares down more than 14 percent. The department store operator said revenue fell 7.5 percent to $5.34 billion in the first quarter. Adjusted earnings per share came at 24 cents per share. Analysts had estimated earnings of 35 cents per share on $5.47 in revenue, according to Thomson Reuters. Same-store sales, a metric closely watched by analyst, fell 4.6 percent last year, also missing analysts' estimate of a 3.5 percent decline. Macy's reiterated its 2017 forecast, expecting that comparable sales to decline between 2 percent and 3 percent in fiscal 2017.
Nvidia Corporation (NASDAQ: NVDA) reported better-than-expected quarterly revenue on Tuesday after market closed. The chip maker said first-quarter revenue jumped 48.4 percent to $1.94 billion from $1.31 billion a year earlier, beating analysts' expectations of $1.91 billion. The rapid growth in revenue was helped by strong demand on its data-center GPU business. Revenue from data center rose to $405 million in the first quarter. The company also gave a strong guidance for second quarter, expecting revenue of $1.95 billion, plus or minus 2 percent. Shares of Nvidia surged nearly 18 percent on Wednesday and gained another 6 percent on Thursday. "Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and A.I., the most important technology force of our time," Nvidia CEO Jensen Huang said in a release.
Snap Inc. (NYSE: SNAP) stock crashed more than 21% after a weak earnings report, their first one as a public company. Snap reported a GAAP net loss was $2.2 billion for the quarter which included the expected stock-based compensation expense and related payroll taxes of $2 billion as a result of the IPO. Despite the large loss, there have been some positive developments as well. CEO Evan Spiegel said the company more than doubled the number of net additional users coming from Android devices compared to last quarter. "We averaged 166 million daily active users for the quarter. Worldwide net additional users in Q1 increased by 54% compared to Q4 as we continued to expand our community in North America and Europe. We also managed to make some headway in the rest of world, largely due to improvements on Android." Spiegel explained.
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