Mid Day BUZZING Stocks: Kohl’s Struggles, Cisco Receives Two Upgrades
Shares of Kohl’s (NYSE:KSS) is selling off 1.4 percent this afternoon as the stock has been stuck most of the day. The company announced that second quarter net income fell 19.7 percent to $240 million ($1 per share), compared to $299 million a year earlier. Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “Our sales performance in the second quarter was disappointing. Our gross margin performance for the quarter, however, was better than expected. Our teams remain disciplined in their expense management and, again, delivered solid results. We accomplished our goal of improving inventory levels for the fall season and our sales improved considerably in July as units were received.”
Wendy’s (NYSE:WEN) shares jumped almost 2 percent this morning, but are now up only 1.1 percent mid day. The fast-food company reported a loss of $5.5 million for the second quarter, but revenue increased 3.8 percent to $645.9 million, beating estimates of $609.1 million. Emil Brolick, president and chief executive officer, explained, “We are building a solid foundation for the reimaging of our system, which is very exciting for our customers, operators and franchisees. Image Activation is one of the most important elements of Wendy’s ‘Recipe to Win’ growth strategy. It elevates the customer experience with innovative exterior and interior designs for new units and reimages.”
Monster Beverage (NASDAQ:MNST) shares are down 8.2 percent in a downtrend since the opening bell. After Wednesday’s closing bell, the company reported second quarter profits of $109.8 million (59 cents per share), falling below estimates of 61 cents per share. Gross margin also declined to 51.8 percent, compared to 52.8 percent last year.
Shares of Zynga (NASDAQ:ZNGA) have rallied back 3.1 percent after falling this morning. John Schappert, chief operating officer, has resigned after recently losing oversight of game development. “We can confirm that John Schappert has left Zynga and its Board of Directors effective immediately,” Zynga CEO Mark Pincus said in an emailed statement, according to Forbes. ”John has made significant contributions to the games industry throughout his career and we appreciate all that he has done for Zynga. John leaves as a friend of the company and we wish him all the best.”
Cisco Systems (NASDAQ:CSCO) shares is now up 3 percent after receiving an upgrade from Piper Jaffray and Goldman Sachs (NYSE:GS). Jaffray upgraded the company to Overweight from Neutral with a $22 price target, while Goldman added Cisco to its Conviction Buy list with a $24 price target.
Investor Insight: Will That Be Debit or Credit? NEITHER