Must-Know Morning News Cheat Sheet for Investors: May 3rd, 2012
Stocks: Green Mountain’s Horrific Earnings Crash, Microsoft’s Incredible Comeback
Green Mountain (NASDAQ:GMCR) shares were off 39 percent premarket after the company issued a profit warning. Its CEO Larry Blanford did say on the company’s fiscal two earnings call that he expects additional moderate growth in sales of its Keurig brewers and K-Cup packs, suggesting that Green Mountain’s story of growth is dying. For the quarter, adjusted earnings per share increased to $0.64 from $0.48 and sales jumped 37 percent to $885.1 million; inventory rose 100 percent.
Investing Insights: 7 Early Buzzing Stocks: Chesapeake Rebounds 2%, New iPhone With Larger Screen?
Showing their unhappiness with the weak demand for Google’s (NASDAQ:GOOG) Android tablets, PC manufacturers including Dell (NASDAQ:DELL), Hewlett Packard (NYSE:HPQ) and Acer are putting their R&D resources into developing Windows 8 (NASDAQ:MSFT) products, according to Digitimes. This also holds true for manufacturer Compal. The first ARM-based (NASDAQ:ARMH) tablets using Windows 8, are coming in October.
On Thursday, BMW AG reported higher-than-expected first quarter earnings thanks to higher sales but kept a conservative guidance for the year; this will come from increasing investments, additional production capacity and new technology. BMW Chief Executive Norbert Reithofer said, “We are still aiming to achieve new record figures for sales volume and pretax earnings in 2012.”
Economy: ECB Interest Rates
The ECB held its monetary policy meeting in Barcelona on Thursday and voted to keep interest rates steady, as the euro area’s economy moves towards recession. As expected, the ECB also left its main overnight lending rate at 1 percent, the level it has been at since late last year. All ears will be on Mario Draghi’s 2:30 P.M. ET press conference to hear him discuss his call for an EU “growth compact” to complement the “fiscal compact.”