Yesterday's Top 3 Earnings - Valeant, Disney And Priceline

Yesterday's Top 3 Earnings - Valeant - VRX - Disney - DIS- And Priceline - PCLN
Flickr

Yesterday, we saw a number of companies reporting their quarterly earnings. Interestingly, most of their stocks were down following the earnings announcement, and we're going to tell you why. Among them were Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Walt Disney Co (NYSE:DIS) and Priceline Group Inc (NASDAQ:PCLN). Some of the other companies that reported earnings include the likes of TripAdvisor and Plug Power. Here's a quick look at the key numbers and the potential reasons why the stocks have headed lower post earnings.

More Positives Than Negatives For Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

One of yesterday's big, much anticipated earnings announcements came from Valeant. And while the company and its stock have kept investors on the edge for a while, Valeant's earnings release had more positives than negatives for shareholders. Valeant has been a debt ridden company, with debt to the tune of close to $30 billion. The company was expected to pay off debt worth $5 billion by March next year, largely raising money from asset sales. Valeant now claims it will achieve the same a month earlier, by Feb 2018. The company also plans to pay off debt worth $500 million over the coming days, which should give them relief from debt obligations till 2020. That's probably the biggest positive for investors, apart from the fact that it has settled several cases, including two pending cases pertaining to Siliq and Philidor.

Coming back to more common measures of earnings, Valeant beat analyst estimates of earnings, which was a good sign. And while it did revise it full year revenue guidance downwards, this was largely expected, given the recent asset sales. It's also important to note that there are some asset sales which have been announced, but are yet to be closed, implying that we may see another round of downward revision in revenue guidance. For the quarter, Valeant reported revenue of $2.23 billion, and earnings of $1.05 per share, beating estimates of 94 cents per share. Net losses narrowed from about $302 million to about $38 million. And most importantly, the company maintained its full year EBITDA guidance, which is likely to be a big relief for shareholders. Valeant stock, however, is down by about 2% in after hours trade.

Walt Disney Co (NYSE:DIS) Beats On Earnings, Misses Revenue Estimates.

The House Of Mouse reported better than expected earnings, while missing on revenue estimates, to deliver another quarter of mixed results. Disney's adjusted earnings came in at $1.58 per share against the expected $1.55, while revenue came in at $14.24 billion vs. $14.42 billion for the quarter. Concerns around ESPN continued to persist, leading to a 23 percent year over year decline in operating income for the cable business segment. The company also announced that it would pull the plug on Netflix Inc (NASDAQ:NFLX), and start its own direct to consumer streaming service. Disney will stop making its upcoming releases available on Netflix, starting from 2019. As far as revenue is concerned, Disney's parks and resorts segment was the key highlight, bringing in revenue of $1.17 billion vs. $1.09 billion expected. The Studio segment also marginally beat expectations. However, the 'media and networks' and 'consumer and interactive' segments missed estimates by a fair bit. Disney shares were down by 3% in after hour trade, and ESPN seems to be the culprit.

Priceline Group Inc (NASDAQ:PCLN) Beats Estimates But Stock Tumbles.

Online travel major Priceline reported second-quarter results after the bell on Tuesday, and beat earnings estimates. However, shares of the company tumbled in after-hours trade, as the outlook for the current quarter missed expectations. Priceline reported adjusted earnings per share of $15.14, beating analysts' estimate of $14.27, while reporting revenue of $3 billion, which met the consensus estimate. However, Priceline's own guidance for the third quarter didn't go down very well with investors. The company expects adjusted earnings per share to be in the range of $31.70 to $33.40, lower than the street's consensus estimate of $34.42 a share. The stock tanked by over 6% in after hours trading, and the trend has sustained in today's pre-market session so far.

Some of this bearish sentiment seems to have rubbed off on TripAdvisor (NASDAQ:TRIP), which operates in a similar space. TripAdvisor also reported its earnings yesterday. And much like Priceline, the company beat earnings estimates and met revenue expectations. TripAdvisor, reported adjusted earnings per share of 38 cents a share, topping the consensus estimate of 30 cents, while revenue of $424 million, met expectations. TRIP stock, however, is also down by close to 7% in pre-market trade.

Plug Power (NASDAQ:PLUG) shares tanked by over 8% yesterday, after the company failed to meet expectations on multiple fronts. Plug's adjusted loss per share came in at 10 cents, which was wider than the expected loss of 6 cents. The GAAP loss came in at 19 cents a share, widening over the year-ago quarter's loss of 7 cents per share. Revenue came in at $22.6 million, rising compared to $20.5 million during the same quarter last year. However, the figure failed to meet analysts' expectation of $28.57 million. If you've enjoyed reading this post, you might also like our roundup of the big news in tech.

Looking for great tech stocks? Check out Amigobulls' top stock picks, which have beaten the NASDAQ by over 145%. If you're a technical trader, you should also check out our daily stock trading ideas section.


Vikram Nagarkar Vikram Nagarkar   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

show more

Comments on this article and VRX stock

Do share this awesome post