Earnings Good, Not Great (INTC, IBM, ISRG, CHSI, SXCI, YPF)
Stocks slipped on the session following a day of good but not great earnings. While the market will once again react to earnings next session, tomorrow’s 10-year Spanish debt auction is likely to have an even bigger impact on equities on Thursday. Hold on tight, as tomorrow is likely to be an interesting day with initial jobless claims and existing home sales also on the schedule.
The Pharmacy Benefit Manager Stocks Index was the top performing tickerspy Index on the day, led by Catalyst Health Solutions (CHSI) with a 34% gain. The Argentina Stocks and ADRs Index was the day’s worst performing tickerspy Index, with YPF Sociedad Anonima (YPF) down -33%.
Stocks fell on the day, with the Dow off -83 points to 13,033. The S&P dropped -6 points to 1,385, while the Nasdaq lost -11 points to 3,031. Oil slipped -$1.53 to $102.67 a barrel, while gold fell -$11.50 to $1,639.60 an ounce.
In earnings news, Intel (INTC), the world’s largest semiconductor maker, said its first-quarter profit fell -13% to $2.74 billion, or 53 cents per share, from $3.16 billion, or 56 cents per share, a year earlier. Revenue came in flat at $12.9 billion. Analysts had expected a profit of 50 cents a share on revenue of $12.8 billion. The company said it expects second-quarter revenue of between $13.1-$14.1 billion, bracketing the $13.4 billion consensus. Shares of Intel fell -1.9%. More than 440 pros held Intel in their portfolios at the end of Q4 and more than 3,900 tickerspy members own the stock in their portfolios.
Tech giant IBM (IBM) said its first-quarter profit rose to $3.07 billion, or $2.61 per share, from $2.86 billion, or $2.31 per share, a year earlier. Revenue was flat at $24.7 billion. On an adjusted basis, IBM earned $2.78 a share. Analysts had expected a profit of $2.66 a share on revenue of $24.82 billion. IBM raised its full-year profit guidance to at least $15.00 a share from $14.85. Analysts were expecting EPS of $14.93. Shares of IBM fell -3.5%. Nearly 700 pros held IBM in their portfolios at the end of Q4 and nearly 2,200 tickerspy members own the stock in their portfolios.
Shares of surgical device maker Intuitive Surgical (ISRG) surged 7.2% after the company said its first-quarter profit soared 38% to $143.5 million, or $3.50 per share, from $104.1 million, or $2.59 per share, a year earlier. Revenue climbed to $495.2 million from $388.1 million. Analysts had expected a profit of $3.09 per share and $466.7 million in revenue. The company also upped its annual growth forecast to 19-21% from prior guidance of 17-19%.
Shares of Catalyst Health Solutions jumped 34.2% after rival SXC Health Solutions (SXCI) agreed to acquire the company for $4.4 billion. SXC Health said Wednesday it will pay $28 in cash and a portion of its stock valued at $53.02 per share for each share of Catalyst. The deal valued Catalyst at about $81.02 per share at the start of the day, a 28% premium to Tuesday’s closing price.
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