Check out the companies making headlines in midday trading.
MoneyGram International — The global remittance company’s shares surged by almost 19% following news that the private equity firm Madison Dearborn Partners will acquire MoneyGram in a deal valued at about $1.8 billion.
Fidelity National Information — Financial services technology firm FIS fell more than 8% and was one of the top decliners in the S&P 500 after reporting results for the most recent quarter. Revenue came in at $3.67 billion, compared to FactSet estimates of $3.71 billion. Current-quarter earnings and revenue guidance fell short of estimates as well.
Constellation Brands — The alcoholic beverage maker’s shares fell nearly 4% following a Bloomberg News report that discussions of a merger with Monster Beverage are progressing and that an agreement between the two companies could be reached within weeks. Monster shares ticked up slightly.
Arista Networks — Shares jumped 7% after the software company reported quarterly earnings of 82 cents per share, which was 9 cents higher than analysts’ estimates. The company also reported a revenue beat and issued an upbeat forecast.
Marriott International — Shares of the hotel chain jumped 5% after Marriott beat estimates on the top and bottom lines for the fourth quarter. The company reported $1.30 in adjusted earnings per share on $4.45 billion of revenue, powered by the continued recovery in global travel. Analysts surveyed by Refinitiv were expecting 99 cents in earnings per share on $3.96 billion of revenue.
Avis Budget Group — The car rental company saw its shares fall more than 11% even after it posted a better-than-expected profit and revenue for its latest quarter and showed increases in rental activity and in revenue per day that helped offset higher expenses. For the quarter, Avis earned $7.08 per share, beating a Refinitiv estimate of $6.15 per share.
General Electric — Shares of the industrial conglomerate rose about 4% after Bank of America reiterated its buy rating on the stock, as GE continues to make progress in reducing legacy issues, the firm said Tuesday. Those issues include the end of factoring repayment, normal pension levels, lower long-term care risks, declining corporate costs and decreased cash restructuring.
Airbnb — The stock rose more than 3% after KeyBanc reiterated its overweight rating on the company ahead of its earnings report Tuesday afternoon. “While we believe there is some risk to near-term bookings growth from omicron headwinds, we believe pent-up demand for U.S. and international travel can lead to further revenue and EBITDA upside in 2022E,” analysts at KeyBanc said.
Restaurant Brands International — Shares of the restaurant operator gained about 3% after the company reported its most recent quarterly results. Its earnings came in at 74 cents per share, beating estimates by 4 cents, and it scored a revenue beat. The company also reported a beat in comparable-store sales for Burger King.
Oil stocks — Shares of oil companies were some of the top decliners Tuesday as oil prices dropped from a 7-year high on a report that tensions between Ukraine and Russia appeared to be easing. Occidental fell 3%. and Marathon, Diamondback and Devon Energy lost about 2%.
— CNBC’s Hannah Miao and Jesse Pound contributed reporting
Leave a Reply