Stocks Tick Lower as Earnings Reports Roll In; Gold Falls Further After Worst Day in 12 Years

Texas Instruments Stock Drops on Soft Q4 Outlook

12 minutes ago

Texas Instruments’ third-quarter results were a mixed bag. Its current-quarter outlook really seems to have disappointed investors.

After the bell Tuesday, Texas Instruments (TXN) reported profit of $1.48 per share on revenue that increased 14% year-over-year to $4.74 billion. Analysts surveyed by Visible Alpha were looking for $1.51 and $4.65 billion, respectively.

For Q4, the Dallas-based firm guided for EPS between $1.13 and $1.39 on revenue from $4.22 billion to $4.58 billion. Analysts were calling for $1.41 and $4.51 billion.

Several analysts cut their price targets on the stock, with Morgan Stanley slashing its to $175 from $192, calling its revenue outlook “a surprise.”

Texas Instruments shares were down about 6.5% less than an hour into the trading day at roughly $169. They are nearly 10% lower this year.

Watch These Key Netflix Price Levels as Stock Drops After Disappointing Earnings

52 minutes ago

Netflix (NFLX) shares tumbled in premarket trading Wednesday after the streaming giant ‘s third-quarter earnings came in short of Wall Street expectations.

The company posted earnings per share of $5.87, compared with the $6.92 EPS that analysts tracked by Visible Alpha had anticipated. Executives said an unplanned charge tied to an “ongoing dispute with Brazilian tax authorities” weighed on profitability in the quarter. Revenue rose 17% from the year-earlier period to $11.51 billion, in line with analysts’ estimates, and Netflix projected another 17% increase in the fourth quarter, driven by membership growth, pricing adjustments and increased ad revenue.

Netflix shares were down more than 7% at around $1,150 in recent premarket trading. Through yesterday’s close, the stock had risen 40% since the start of the year, far outpacing the 15% gain of the benchmark S&P 500 index over the period.

After hitting their record high in late June, Netflix shares have consolidated within a descending triangle, a bearish chart pattern that signals a potential move lower.

Indeed, the stock looks set to tumble toward the pattern’s lower trendline following the streamer’s weaker-than-expected earnings report, reinforcing a downward bias.

Read the full technical analysis piece here.

–Timothy Smith

Hilton Stock Rises as Luxury Brands Power Stronger-Than-Expected Results

1 hr 40 min ago

Hilton Worldwide Holdings (HLT) shares advanced 3% less than an hour before the bell after the hotel chain reported better-than-expected third-quarter results, aided by gains in its luxury brands.

The McLean, Va.-based company posted adjusted earnings of $2.11 per share on revenue that rose almost 9% year-over-year to $3.12 billion. Analysts polled by Visible Alpha had expected $2.06 and $3.01 billion, respectively.

Although system-wide comparable RevPAR decreased 1.1%, slightly worse than expected, it rose at luxury brands LXR, Conrad, and Waldorf Astoria by 6.4%, 2.6%, and 1.7%, respectively.

Hilton now sees full-year system-wide comparable RevPAR from flat to up 1% versus the prior projection of flat to up 2%, but lifted its adjusted EPS guidance to a range of $7.97 to $8.06 from $7.83 to $8.00.

“We remain optimistic that in the U.S., lower interest rates, a more favorable regulatory environment, certainty on tax policy and a significant investment cycle will accelerate economic growth and travel demand,” CEO Christopher Nassetta said.

Hilton shares entered Wednesday up about 8% this year.

Mattel Stock Sinks After Q3 Results Come in Worse Than Expected

2 hr 24 min ago

Shares of Mattel (MAT) were down nearly 6% before the bell after the Barbie maker reported weaker-than-expected third-quarter results.

After the bell Tuesday, the El Segundo, Calif.-based toymaker posted adjusted earnings of $0.89 per share on net sales that fell 6% year-over-year to $1.74 billion. Analysts surveyed by Visible Alpha had expected $1.04 and $1.83 billion, respectively.

Gross margin decreased to 50.0% from 53.1% a year ago, which Mattel said was “primarily due to the impacts of unfavorable foreign exchange, inflation, tariff costs, and higher sales adjustments, partially offset by cost savings.”

“Our U.S. business was challenged in the third quarter by industry-wide shifts in retailer ordering patterns,” CEO Ynon Kreiz said.

Mattel shares entered the day up 6% year-to-date, while the benchmark S&P 500 is up nearly 15%.

Stock Futures Little Changed After Mixed Session

3 hr 2 min ago

Futures tied to the Dow Jones Industrial Average were fractionally lower.

S&P 500 futures were up 0.1%.

Nasdaq 100 futures were less than 0.1% lower.