Tuesday, December 11, 2018


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Check out the companies making headlines before the bell:

Marriott – The hotel chain revealed that hackers had access to the Starwood brand guest reservation database since 2014, and could access a variety of personal data that in some cases included payment information. The breach predates Marriott’s deal to buy Starwood, which was announced in 2016 and completed last year.

Goldman Sachs – Goldman was downgraded to “neutral” from “buy” at Bank of America. Bank of America said although the current valuation discounts most potential negatives related to the 1MDB investigation, uncertainty may linger for a while.

HP Inc. – HP reported adjusted quarterly profit of 54 cents per share, matching Street forecasts. The computer and printer maker’s revenue slightly beat estimates on growth in the company’s personal systems business.

GameStop – GameStop reported adjusted quarterly profit of 67 cents per share, topping consensus forecasts by 10 cents a share. The videogame retailer’s revenue was very slightly above estimates, but the shares are under pressure after the company cut its full-year outlook. GameStop is seeing hardware – which has lower margins than other parts of its business – exhibit more dominance of its sales mix than expected.

Workday – Workday came in 17 cents a share above estimates with adjusted quarterly profit of 31 cents per share. The human resources software company’s revenue exceeded Street forecasts, as well. Workday’s results were driven by a 35 percent increase in subscription revenue.

Nio – The CEO of the China electric carmaker’s U.S. unit, Padmasree Warrior, is resigning. Her departure is the first executive change at Nio since its September initial public offering.

VMWare – VMWare earned an adjusted $1.56 per share for its latest quarter, 6 cents a share above estimates. Revenue came in essentially in line with expectations. The cloud software maker also raised its 2019 guidance.

PVH – PVH beat estimates by 7 cents a share, with adjusted quarterly profit of $3.21 per share. The apparel maker’s revenue was very slightly below estimates. PVH is seeing weakness in its Calvin Klein business, although it said its Tommy Hilfiger brand is outperforming expectations.

Under Armour – The athletic apparel maker’s shares were upgraded to “market perform” from “underperform” at Wells Fargo, ahead of the company’s December 12 meeting with analysts. Wells Fargo said the bear case for Under Armour has “run out of steam” and that management is likely to lay out bullish sales and margin targets at that meeting.

Deutsche Bank – The bank’s headquarters were raided by police in Frankfurt for a second day, amid money laundering allegations linked to the so-called “Panama Papers.”

CVS Health – CVS closed its deal to buy insurer Aetna earlier this week, but a judge is now raising the prospect of not approving the deal. Judge Richard Leon said the government and the two companies are treating him as a “rubber stamp” for the deal by already having closed it, although Aetna said in a statement that such an action is commonplace.

AT&T – AT&T told investors it is committed to cutting up to $20 billion in debt next year. It also told its Investor Day gathering that it plans to launch three versions of a new video streaming service next year featuring original content from its Warner Brothers, Turner, and HBO units.

Fair Isaac – FICO was upgraded to “overweight” from “equal weight” at Barclays, which cited several factors including valuation. It also raised its price target on the provider of credit scores to $225 per share from $200.

Ambarella – Ambarella reported adjusted quarterly profit of 21 cents per share, beating the consensus estimate of nine cents, while the chip maker’s revenue and current quarter guidance also beat forecasts. Ambarella was once the primary supplier of chips for GoPro cameras, although GoPro has since diversified its supplier base.

Palo Alto Networks – Palo Alto Networks earned an adjusted $1.17 per share for its fiscal first quarter, 12 cents above estimates, with the cybersecurity software company’s revenue also exceeding Wall Street forecasts. The company also gave a stronger than expected outlook.

General Electric – The Wall Street Journal reports that ex-staffers have told federal investigators that certain insurance risks were ignored, leading GE to have less-than-sufficient reserves to cover losses. Separately, Deutsche Bank lowered its price target on GE stock to $7 per share from $11, based on what it sees as the most likely macroeconomic scenario. However, it is maintaining its “hold” rating on the stock, which closed Thursday at $7.94.

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