Soft Guidance for McDonald’s, GlaxoSmithKline Addresses China Situation, and 3 More Hot Stocks
McDonald’s (NYSE:MCD): Second-quarter earnings per share of $1.38 has missed expectations by 2 cents as revenue of $7.1 billion fell in line. ”Global comparable sales for July are expected to be relatively flat…Our results for the remainder of the year are expected to remain challenged,” the company said. Comparable sales grew 1 percent, revenues lifted 2 percent, and operating income was up 2 percent for the quarter. However, the cautious outlook pulls the rug out from under the bulls, who were counting on a second-half sales acceleration to make up for a slow beginning to the year.
GlaxoSmithKline (NYSE:GSK): GlaxoSmithKline has come forth and said its senior executives in China “appear to have acted outside of our processes and controls which breaches Chinese law,” and will move forward in efforts to overhaul its Chinese operations and lower drug prices in the country. Meanwhile, Britain’s Serious Fraud Office is conducting an investigation on its own and will impose its own sanctions, as could the U.S. Justice Department.
Royal Dutch Shell (NYSE:RDSA): Shell has announced that it and its partners, Petrobras (NYSE:PBR) and ONGC, are expecting to jack up production in Brazil with two new deepwater projects at Parque das Conchas, BC-10, and the Bijupirá-Salema oilfields. For Parque das Conchas, Shell and its partners have decided to move forward with Phase 3 of the project, which will include the installation of subsea infrastructure at the Massa and Argonauta O-South fields, MarketWatch says.
Baxter International Inc. (NYSE:BAX): Baxter’s Chinese joint venture, Baxter Qiaoguang Pharmaceutical, is reportedly under an investigation that could potentially be related to payments made to make sure that Baxter’s ClinOleic treatment stays on the list of products that can be claimed on national insurance in China, giving the pharmaceutical industry in China that much more to be concerned about.
Six Flags Entertainment (NYSE:SIX): Shares have recovered slightly after a premarket plummet on the heels of the company’s quarterly results, in which earnings per share of 47 cents missed by 5 cents and revenue of $363.7 million came up $6.3 million shy. Cool weather and lots of precipitation didn’t seem to hinder the spirits of Chairman, President, and CEO Jim Reid-Anderson, who said he was pleased with the year-to-date performance so far. The death of a Six Flags visitor in Texas last week probably isn’t shedding a favorable light on the shares, either.