Check out the companies making headlines midday Friday:
Starbucks — The coffee company’s stock jumped 8.9% after Starbucks announced earnings and revenue that exceeded expectations. Starbucks posted earnings per share of 78 cents on revenue of $6.82 billion. Analysts polled by Refinitiv expected a profit of 72 cents a share on sales of $6.67 billion. Same-store sales, a key metric for restaurants and retailers, rose 6% to top expectations.
Amazon — Amazon shares dropped 1.6% after the company announced weaker-than-expected earnings Thursday afternoon. The company’s earnings came in at $5.22 per share, compared to a Refinitiv estimate of $5.57. Amazon’s spending on infrastructure cut into its profit margins, driving down earnings.
Alphabet — Alphabet climbed 9.6% after the Google-parent reported second-quarter results that beat analyst expectations. The company reported adjusted earnings per share of $14.21 on revenue of $38.94 billion, versus the $11.30 EPS and $38.15 billion in revenue analysts had estimated, according to Refinitiv. Alphabet said it plans to repurchase up to $25 billion of its Class C stock.
Twitter — Twitter shares jumped 8.9% after the company announced better-than-expected second-quarter earnings and revenue Friday morning. The company made 20 cents per share on $841 million in revenue, topping a Refinitiv estimate of earnings per share of 19 cents on $829 million in revenue. Twitter increased ad revenue by 21% year over year while its monetizable user base grew more than expected.
T-Mobile, Sprint — Shares of T-Mobile and Sprint rose 5.4% and 7.4%, respectively, after the Justice Department approved their $26 billion merger.
AbbVie — AbbVie ticked up 1.7% after the biopharmaceutical company reported higher-than-expected second-quarter earnings and upped its forecast for full-year profit. The company reported adjusted earnings per share of $2.26 on revenues of $8.26 billion. Analysts had expected earnings per share of $2.21 on revenues of $8.1 billion, according to Refinitiv. AbbVie hiked its full-year earnings guidance to a range of $8.82 to $8.92 per share. Abbvie had previously expected 2019 earnings to range between $8.73 and $8.83. CEO Richard Gonzalez said the company’s plan to acquire drugmaker Allergan will provide “scale and diversity” to the business.
Goodyear Tire — The tire maker’s stock dropped more than 5% after reporting weaker-than-expected results for the second quarter. Goodyear reported earnings per share of 25 cents on $3.632 billion in revenue. Analysts expected the company to report a profit of 34 cents a share on sales of $3.781 billion, according to Refinitiv. Goodyear’s unit sales fell in all regions.
Cabot Oil & Gas — Cabot shares dropped more than 12% after the natural gas producer cut its full-year production growth forecast. The company expected production to increase between 16% and 18%, down from a previous guidance of 20%.
Universal Health Services — The hospital operator’s stock rallied 10.9% after on the back of strong results for the second quarter. Universal Health also got a boost after reaching a $127 million settlement to end a fraud investigation.
Fiserv — Shares of the financial services company rose 6.2% after Fiserv announced its acquisition of First Data had been approved by regulators. Fiserv expects the deal to close on or around Monday.
MGM Resorts — MGM Resorts CEO Jim Murren said the company is “confident” it will reach its 2020 goals, sending the stock up 3.8% and overshadowing mixed quarterly results. He added MGM expects “significant growth in free cash flow through continued ramp up at our newer properties and further progress in executing our MGM 2020 Plan.”
