Friday, September 22, 2023
Homemarket insiderEarly movers: LULU, YUM, ABBV, AVGO, SWHC, AMBA, GAP, UPS, MCD &...

Early movers: LULU, YUM, ABBV, AVGO, SWHC, AMBA, GAP, UPS, MCD & more

Check out which companies are making headlines before the bell:

Lululemon — The yogawear maker reported adjusted quarterly profit of 38 cents per share, 1 cent a share above estimates. Revenue was in line, but investors are focusing on weaker than expected guidance, putting extreme pressure on Lululemon shares.

Yum Brands — Yum sold a $460 million stake in its China unit to a consortium consisting of a China investment firm and a unit of online retail giant Alibaba. The unit is in the process of being spun off from Yum, with plans for the newly separate company to trade on the New York Stock Exchange as of November 1.

AbbVie — Raymond James began coverage on the drugmaker with an "outperform" rating, citing valuation and an under-appreciation of the revenue potential of AbbVie's Humira drug.

Broadcom — Broadcom earned an adjusted $2.89 per share for its latest quarter, 12 cents a share above estimates. Revenue was slightly above forecasts. The chipmaker also predicted current-quarter revenue slightly above consensus.

Smith & Wesson — The company came in 9 cents a share above consensus, with adjusted quarterly profit of 62 cents per share. The gunmaker's revenue was also above estimates. The company also gave strong guidance for both the current quarter and full year.

Ambarella — Ambarella posted adjusted quarterly profit of 54 cents per share, 16 cents a share above estimates. The maker of image processing chips also saw revenue beat consensus. The shares remain under pressure, however, due to a series of quarterly losses by major customer GoPro.

Gap — Gap reported a 3 percent drop in August same-store sales, a larger decline than the 1.9 percent Thomson Reuters consensus estimate. The biggest drop came at the apparel retailer's Banana Republic unit, which saw same-store sales fall by 10 percent.

United Parcel Service — UPS announced a 4.9 percent average rate increase for its freight service, effective Sept. 19, and a similar increase for the company's other services which will go into effect on Dec. 26.

McDonald's — The restaurant chain's plan to sell outlets in China and Hong Kong now has some more interested bidders, with The Wall Street Journal reporting private-equity firms Carlyle and TPG have joined separate consortiums to bid for those stores in a deal that could be worth up to $3 billion.

Alphabet — The company's Google unit has suspended plans to build a modular smartphone with interchangeable components, according to a Reuters report.

Harley-Davidson — Harley will cut about 200 jobs as the motorcycle maker adjusts its production schedule to account for a lower shipment forecast for 2016.

Marriott — China regulators, who have now extended their examination of Marriott's deal to buy Starwood for a third time due to the complexity of the deal. The two companies have maintained that the transaction poses no anticompetitive issues in China.

Viacom — Viacom's board has received various options for the sale of its Paramount Pictures unit from outgoing chairman Philippe Dauman, according to a Wall Street Journal report, although any deal for Paramount appears unlikely to happen any time soon.

Dean Foods — Dean Foods named chief operating officer Ralph Scozzafava as its new chief executive officer, effective Jan. 1. He'll replace Gregg Tanner at the helm of the milk producer, with Tanner remaining as an adviser through May.

Hewlett Packard Enterprise — The company is looking for a buyer for its software unit, according to The Wall Street Journal, in a deal that could be worth as much as $10 billion.

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