Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Check out the companies making headlines midday Tuesday:
Shake Shack — Shares of Shake Shack climbed 14% after the restaurant chain reported second-quarter results hat surpassed analysts’ expectations. The company reported adjusted earnings per share of 27 cents on revenue of $152.7 million, topping the earnings per share of 23 cents on revenue of $149.8 million analysts polled by Refinitiv had estimated. Shake Shack noted that “digital channels, including delivery, were a key contributor to these results.”
Take-Two Interactive — Shares of Take-Two Interactive spiked more than 8% on Tuesday after the video game company reported better-than-expected revenues for its fiscal first quarter and raised its full year revenue guidance. Take-Two reported $422 million in revenue for the quarter, fueled by strong sales from its Red Dead Redemption and NBA 2K franchises, and gave guidance of between $2.60 and $2.70 billion in adjusted revenue for the year. Analysts expected $357 million in revenue and guidance of $2.65 billion, according to Refinitiv.
Ford Motor — Ford’s shares rose 2.3% after Morgan Stanley upgraded the automaker to overweight from equal weight, pointing to a “significant increase ” in estimated earnings over the next three years. Analyst Adam Jonas said the stock’s recent dip is “a buying opportunity” that “reset [fiscal year 2019] expectations.”
Aurora Cannabis — Shares of the Canadian cannabis company rallied more than 8% on the back of strong production guidance for fiscal fourth quarter. Aurora expects cannabis production to be at the upper end of its range between 25,000kg and 30,000kg. That’s a head of prior guidance of around 25,000kg.
Avid Technology — The technology company’s stock plummeted 20% on weak second-quarter results. Avid reported an adjusted profit of 2 cents a share. It was not clear if the earnings were comparable to estimates. Revenue of $98.7 million missed a FactSet estimate of $101.3 million. “We faced certain headwinds during Q2 related to our supply chain transition that brought our Q2 results below expectations,” said CFO Ken Gayron.
Dean Foods — Dean Foods plummeted 24.3% after the food and beverage company’s second-quarter earnings missed Wall Street’s estimates. The company reported an adjusted loss of 36 cents on revenue of $1.84 billion. Analysts had expected a loss per share of 13 cents on revenue of $1.88 billion, according to Refinitiv. Dean noted that dairy commodity inflation, volume pressure, and an accelerated decline in the white milk category contributed to the weak quarter.
AB InBev — The beer giant was downgraded by an analyst at UBS to neutral from buy, citing a “fair” valuation and slowing earnings growth staring in the third quarter.
Northrop Grumman — Northrop Grumman shares rose 2% after Morgan Stanley upgraded the defense contractor to overweight from equal-weight, saying that it is “well-positioned” in the market, citing its focus on high-end technology and other favorable factors which make it the “best long-cycle play.”
KLA Corporation — Shares of KLA rose by roughly 6% after the semiconductor company’s quarterly results beat analyst expectations. KLA generated $1.78 in earnings per share on $1.258 billion in revenue. Analysts expected $1.74 in earnings per share on $1.256 billion in revenue. Revenue from the newly acquired Orbotech helped boost the company despite flat sales in its process control segment.