Afternoon BUZZERS: Coach and Dendreon CRASH, Pfizer POPS, Apple SPIKES On New Product Rumors
Shares of Coach (NYSE:COH) plunged nearly 17 percent in afternoon trading. The company reported disappointing results for its fourth quarter. Net income rose to $251.4 million (86 cents per share), compared to $202.5 million (68 cents per share) a year earlier. However, revenue came in at $1.16 billion, missing estimates of $1.2 billion. Growth in China was strong, but North American shoppers continue to slow their spending.
Pfizer (NYSE:PFE) shares are up nearly 3 percent this afternoon. The company reported a 24.6 percent rise in net income to $3.25 billion (43 cents per share) for the second quarter, compared to $2.61 billion (33 cents per share) a year earlier. Ian Read, chief executive officer, stated, “We delivered solid results this quarter. This performance was achieved despite the $1.8 billion, or 11 percent, negative impact on revenues of product losses of exclusivity compared with the year-ago period, primarily Lipitor in most major markets. Worldwide revenues from many of our key medicines, including Celebrex, Enbrel, Lyrica and the Prevnar/Prevenar franchise, increased and our Emerging Markets unit generated 14 percent operational revenue growth, driven primarily by our targeted investments in China and Russia.” Shares of Eli Lilly (NYSE:LLY) also edged higher.
Dendreon (NASDAQ:DNDN) shares are down 21 percent in early afternoon trading. Shares were halted yesterday after announcing financial results for the second quarter. The company narrowed its loss to $96.1 million, compared to a loss of $116 million a year earlier. The results missed expectations and the company will undergo a restructuring plan, which includes 600 job cuts. “By re-configuring our manufacturing model, strengthening our commercial organization and lowering our overall cost structure, we believe we can deliver value to our shareholders and our physician customers and their patients,” explained John H. Johnson, president and chief executive officer.
Apple (NASDAQ:AAPL) shares are up over 2 percent this afternoon. Rumors continue to swirl about new products slated for a Fall release. The blog iMore writes sources “who have proven accurate in the past” say Apple will launch the next-generation iPhone, iPad Mini and a new iPod nano in early September. While no additional information or details about the hardware specifics were offered, the sources say the iPad Mini will “be exactly like the 9.7-inch iPad, only scaled down to 7.x-inches.” The new iPhone is expected to come with a taller 4” screen and be 4G LTE-capable.
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