A customer reaches for a video game inside a GameStop store in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Check out the companies making headlines in midday trading.
GameStop – Shares of the video game retailer cratered 15% after GameStop slashed its full year profit forecast and reported a surprise third-quarter loss of 49 cents a share, far below the 11 cents a share profit analysts surveyed by Refintiv expected. GameStop lowered its full year earnings forecast to a range of 10 cents a share to 20 cents, far below its previous forecast of $1.15 a share to $1.30 a share.
Home Depot — The home improvement giant issued a fiscal 2020 sales growth outlook that was below analyst expectations, pushing the stock down 1.8%. Home Depot said it expects sales to grow between 3.5% and 4%. Analysts polled by Refinitiv expected guidance of around 4.3% sales growth.
UPS — UPS shares slid 1.5% after an analyst at BMO Capital Markets downgraded them to market perform from outperform. The analyst expects UPS to struggle improving its profitability and free cash flow moving forward.
Children’s Place — Shares of the children’s clothing retailer plunged 23.1% on the back of disappointing guidance for 2020. Children’s Place expected earnings to range from $5 per share to $5.20 per share next year. That’s below a FactSet estimate of $5.62 per share and a previous outlook ranging between $5.40 per share and $5.75 per share. The updated earnings guidance reflects an adverse impact from U.S. tariffs on Chinese goods that took effect in September.
Chevron — Shares of the oil giant slid 1.4% after the company said it would write down as much as $11 billion worth of assets as lower oil prices pressure the company’s bottom line. Chevron also announced a $20 billion capital spending budget for 2020, and said that it would consider offloading some of its assets.
Ollie’s Bargain Outlet — Shares of the discount retailer soared 15% after reporting quarterly earnings of 41 cents per share, topping estimates at 38 cents per share, according to Refinitiv. Ollie’s revenue also beat Wall Street forecasts.
Potbelly — The sandwich company sank 6.4% after the company announced its chief financial officer is leaving, drawing multiple negative brokerage notes and at least one equity downgrade. CFO Tom Fitzgerald will join Planet Fitness as its top financial officer.
American Eagle Outfitters — Shares of the clothing company sank 6.5% after issuing disappointing fourth quarter earnings guidance. American Eagle expects to earn between 34 cents and 36 cents per share, below analysts’ expectation of 46 cents, according to Refinitiv. The retailer estimates flat same-store sales, well below the 4.34% growth analysts estimated.
Vera Bradley — Shares of the handbag company tanked 8.3% after reporting disappointing next quarter guidance. Vera Brandley estimates revenue between $155 and $162 million, below analysts expectations of $162.5 million, according to Refinitiv.
Mednax — Shares of Mednax jumped 8% on news that activist investor Starboard Value is pushing Mednax to consider a sale, the Wall Street Journal reported. The health care company said it welcomes a “constructive dialogue” with Starboard in a SEC filing.
Dave & Buster’s — Shares of the restaurant chain dropped 3.5% after narrowing its same-store sales and net income estimates for fiscal 2019.
—CNBC’s Fred Imbert, Michael Sheetz, Thomas Frank and Pippa Stevens contributed reporting.