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Avon shares skyrocket after Brazil's Natura plans all-stock acquisition

8 min ago

Shares of Avon Products Inc. rose more than 15% in the extended session Wednesday after Brazilian cosmetics and skin care company Natura & Co. said it planned to buy the iconic U.S. counterpart in an all-stock deal that would create the fourth largest pure-play beauty group in the world. Natura takes a page from Avon's roots in peer-to-peer sales and an army of consultants, and the combined company is expected to have annual gross revenue of more than $10 billion, employ more than 40,000 associates, and be present in 100 countries. "By adding Avon to a portfolio that already includes Natura, The Body Shop and Aesop, Natura & Co will enhance its ability to better serve its different consumer profiles and distribution channels and expand into new geographies," Natura said in a statement. The deal values Avon around $3.7 billion, and the combined group would have an enterprise value of about $11 billion. Natura plan to list American depositary shares on the New York Stock Exchange after the deal is completed, which is expected in early 2020.

Victoria's Secret parent L Brands swings to surprise profit, stock rallies

40 min ago

Shares of L Brands Inc. rose more than 14% in the extended session Wednesday after the parent of Victoria's Secret and other brands reported a surprise first-quarter profit and raised its guidance for the year. L Brands said it earned $40 million, or 14 cents a share, compared with 17 cents a share in the year-ago period. Sales rose to $2.629 billion from $2.626 billion a year ago. Analysts polled by FactSet had expected per-share results to break even, in accordance with company's guidance, and sales of $2.6 billion. Comparable-store sales fell 5% at Victoria's Secret and increased 13% at Bath & Body Works, the company said. L Brands also raised its guidance for 2019 EPS to between $2.30 and $2.60, from a previous outlook of EPS between $2.20 and $2.60. Shares of L Brands ended the regular trading day down 5%.

Urban Outfitters shares slump as fashion misses cause uncertainty

43 min ago

Urban Outfitters Inc. stock slumped nearly 10% in Wednesday trading as analysts express concern that fashion misses will continue to weigh on results. "Our sales have started out the quarter below our first-quarter trend and internal expectations," said Francis Conforti, Urban Outfitters' chief financial officer, on the call, according to a FactSet transcript. Chief Executive Richard Hayne said issues for May-to-date were due, in part, to product miscalculations. "I believe all brand teams currently have excellent clarity on what the customer is looking for and should be able to execute on that knowledge," he said. "If this assumption is correct, total retail segment comps should improve as the quarter progresses." But for Wells Fargo, that wasn't enough. "The results are clearly disappointing, but what is even more worrisome is the fact that Urban Outfitters was hopeful for mid-single digit 2019 comps just six months ago, and now after a slow start to 1Q they are hopeful for inflection in 2Q (where trends appear to actually be worsening). It creates very limited visibility for investors," analysts led by Ike Boruchow wrote. Wells Fargo rates Urban Outfitters shares market perform with a $28 price target, down $2. Instinet analysts also cut their price target to $28 from $32, but maintained their neutral stock rating. Urban Outfitters' portfolio includes the namesake brand, Anthropologie and Free People. The company just announced a clothing rental service, Nuuly. Urban Outfitters stock has taken a 26.7% tumble while the S&P 500 index has gained 14% for the period.

NetApp stock dives after earnings miss, weak forecast

1 hour ago

NetApp Inc. shares dropped more than 5% in late trading Wednesday after the data-storage company reported weaker than expected earnings and revenue and projected declining quarterly sales and profit. In a fiscal fourth-quarter earnings report, NetApp reported income of $396 million, or $1.59 a share, on sales of $1.59 billion, down from $1.64 billion the year before. After adjusting for stock-based compensation, restructuring charges and other effects, the company reported earnings of $1.22 a share. Analysts on average expected adjusted earnings of $1.26 a share on sales of $1.64 billion, according to FactSet. NetApp said it expects first-quarter adjusted earnings of 78 cents to 86 cents a share on sales of $1.32 billion to $1.47 billion, which suggests a decline from adjusted earnings of $1.04 a share on sales of $1.47 billion in the previous fiscal first quarter. Analysts on average were projecting adjusted earnings of $1.05 a share on sales of $1.49 billion, according to FactSet. NetApp did increase its dividend 20% for the first quarter. NetApp shares closed 4.1% lower at $67.10 Wednesday, then declined lower than $64 in after-hours action immediately following the release of the report.

Dow ends with triple-digit loss as weak retailer earnings offset Fed minutes

1 hour ago

U.S. stocks ended lower at the closing bell on Wednesday after a raft of weaker-than-expected earnings from retailers overshadowed the Federal Reserve's minutes where it reiterated the central bank's patient stance. The S&P 500 fell 0.3% to finish around 2,856. The Dow Jones Industrial Average retreated 101 points, or 0.4%, to end near 25,776. The Nasdaq Composite was down 0.4% to finish around 7,751. Shares of Lowe's Cos. and Nordstrom Inc. fell 9% and 12%, respectively, after both delivered worse-than-expected first-quarter earnings. The Fed's minutes from its most recent meeting showed officials were comfortable with the central bank's accommodative policies, though they were split on the outlook for interest rates. Trade tensions continued to linger in investors' horizons even as China's ambassador to the U.S. said late Tuesday Beijing was open to renewing trade negotiations.

Dallas Fed's Kaplan: 'Agnostic' whether next interest rate move will be 'up or down'

1 hour ago

Dallas Fed President Robert Kaplan said Wednesday that he is solidly in the "patient" camp on interest rates and had no position on whether the next interest rate policy move will be to ease or tighten. Asked on the Fox Business Network if the next move by the Fed would be a rate cut, Kaplan replied: "We're basically, I think, at the right policy setting. I'm sort of agnostic at this point between about moving rates up or down." Kaplan said he would need to see something "compelling" that would cause him to end this patient stance. Financial stability concerns was one reason not to cut rates now, he said. "I'm hesitant while we're at or past full employment and the economy is running at solid rates... that adding further accommodation to the economy could create excesses and imbalances that could be painful to deal with in the years ahead," Kaplan said. While he is not a voter, Kaplan is influential given that he is a member of a small subcommittee of Fed officials that focuses on communication strategy.

British pound sinks as U.K. House of Commons leader quits -- underlining May's Brexit challenge

2 hours ago

Andrea Leadsom, the leader of the U.K.'s House of Commons, has quit on Wednesday, amid disagreements with U.K. Prime Minister Theresa May's Brexit plan, according to reports. The defection comes as the premier has struggled to garner support for a fourth vote on her Brexit deal sometime in June, which also offers members of Parliament the option of voting on a second Brexit referendum. Leadsom is considered one candidate who could replace May. The embattled premier has already stated that she will step down sooner than later, amid an inability to get a Brexit bill passed in Parliament. The Guardian on Tuesday reported that Leadsom wouldn't accept a new Brexit plan that leaves open the possibility of a customs union --a thorny issue for Brexiters. The British pound has been under pressure against its rivals all week. Most recently, a dollar bought $1.2669, compared with $1.2706 late Tuesday. Sterling had fallen to around a four-month low amid unverified rumors of May's imminent resignations. The pound has been weakening amid the Brexit indecision because investors have been worried that recent developments could lead to a disorderly, or "hard," Brexit, an outcome that could roil domestic and international financial markets. In a tweet using a handle believed to be affiliated with Leadsom, the House of Commons leader said: "I cannot fulfill my duty as Leader of the House of tomorrow, to announce a bill with new elements that I fundamentally oppose." The Guardian reported that May has thus far resisted pressure to step down as prime minister immediately.

Micron's stock falls after CFRA calls it a 'strong sell'

2 hours ago

Shares of Micron Technology Inc. slumped 2.6% in afternoon trade Wednesday, after CFRA analyst Angelo Zino turned decidedly bearish on the memory chip maker, citing concerns over DRAM prices and the U.S. ban on doing business with China's Huawei Technologies. Zino cut his rating to strong sell from hold, and slashed his price target to $32, which is 7.8% below current levels, from $46. He believes Wall Street consensus earnings estimates need to see "significant downward revisions," as DRAM prices appear unlikely to stabilize in the near term given "excessive" customer inventories, and given that Huawei is a relatively large customer of Micron. "While we applaud [Micron's] ability to improve its balance sheet in recent years, we are growing more concerned about the magnitude of a potential cyclical recovery given the aforementioned issues," Zino wrote in a note to clients. The stock has shed 18.5% over the past three months, while the PHLX Semiconductor Index has slipped 1.2% and the S&P 500 has gained 2.4%.

U.S. oil prices finish with a loss of nearly 3% as U.S. crude stocks rise

2 hours ago

Oil futures dropped Wednesday, with U.S. prices settling at their lowest in a week and half, after the Energy Information Administration reported an unexpected weekly climb in U.S. crude inventories, the second weekly rise in a row. "A surprise buildup of 4.7 million barrels of crude and 3.7 million barrels of gasoline pushed prices down," said Alfonso Esparza, senior market analyst at Oanda. "Middle East tensions and the ongoing [OPEC-led] crude output cut deal have kept prices in a higher range, but higher U.S. production keeps putting downward pressure on prices." July WTI oil fell by $1.71, or 2.7%, to settle at $61.42 a barrel on the New York Mercantile Exchange. That was the lowest front-month contract finish since May 13 and biggest one-day dollar and percentage loss in nearly three weeks, FactSet data show.

Gold ends modestly higher, edges up further in electronic trade after Fed minutes

3 hours ago

Gold prices posted a modest gain on Wednesday, recouping a portion of the loss from a day earlier as U.S. benchmark stock indexes moved lower. Prices then moved a few cents higher in electronic trading after minutes from the Federal Open Market Committee’s April 30 to May 1 meeting showed that voting members seemed comfortable with their patient stance on interest rates. In electronic trading, gold for June delivery was at $1,274.50 an ounce shortly after the meeting minutes. The contract had climbed by $1, or nearly 0.2%, to settle at $1,274.20 an ounce on Comex, ahead of the news.

Fed minutes: Voters say patient stance can last 'for some time'

3 hours ago

The voting members of the Federal Open Market Committee seemed comfortable with their patient stance on interest rate, agreeing it could last for "some time," according to minutes of their April 30- May 1 meeting released Wednesday. Even if global economic and financial conditions improve, a wait-and-see approach was warranted, the officials said. Officials were split on the outlook for interest rates. A few officials said there might be a need for higher rates if the economy evolves as they thought. But others thought higher productivity might mean there was more economic slack than the low unemployment rate might suggest. Several others expressed worry about the risk of low inflation readings leading to lower expectations of future inflation, but did not call for a rate cut. Many said that the recent low inflation readings were transitory. In addition to interest-rate policy, there was a lengthy discussion, but no decision, about what types of Treasurys the central bank should hold once its balance sheet stops shrinking.

Avon confirms acquisition talks with Brazilian beauty company, shares soar

4 hours ago

Avon Products Inc. confirmed that it's in "advanced discussions" with Brazilian beauty company Natura Cosmeticos S.A. about Avon's acquisition in an all-stock transaction. "There can be no assurance any transaction will result from these discussions," the statement said. The Wall Street Journal reported on the talks, writing that the boards of both companies have approved the deal. Avon stock soared more than 15% in Wednesday premarket trading on the report. Shares of the beauty company have jumped more than 110% for the year to date, closing Tuesday at $3.20. The S&P 500 index has gained 14.3% for 2019 so far.

Trump says he canceled infrastructure talks with Democrats over investigations

5 hours ago

President Donald Trump on Wednesday said he told House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer that he can't proceed with a discussion about infrastructure spending while under investigation. Trump and the Democratic leaders were scheduled to discuss building on a preliminary agreement for $2 trillion of infrastructure spending. At an unscheduled Rose Garden press conference, Trump decried the probe by Special Counsel Robert Mueller and said he had the most transparent administration in history. Earlier, Pelosi said Trump engaged in a cover up.

Ambarella's stock tumbles after reports U.S. may ban business with China's HIKvision

5 hours ago

Shares of Ambarella Inc. plunged 13.1% in active morning trade Wednesday, putting them on track to suffer the biggest one-day drop since September 2017, following reports that the U.S. was considering adding China-based Hougzhou HIK Vision Digital Technology Co. Ltd. to a blacklist. Trading volume swelled to 2.4 million shares, already nearly 5-times the full-day average. Morgan Stanley analyst Joseph Moore estimates that the video processing chips seller's exposure to HIKVision is in the "high teens" percentage of total revenue. "While Ambarella is officially incorporated in the Cayman Islands, we would expect them to be impacted by such a restriction if it were to be implemented," Moore wrote in a note to clients. He reiterated his overweight rating and $52 stock price target. Ambarella shares have gained 9.9% year to date, while the S&P 500 has advanced 14%.

EIA data reveal a second straight weekly climb in U.S. crude supplies

6 hours ago

The Energy Information Administration on Wednesday reported that U.S. crude supplies rose by 4.7 million barrels for the week ended May 17. Analysts polled by S&P Global Platts expected a fall of 2 million barrels, on average. Data from the American Petroleum Institute on Tuesday had shown an increase of 2.4 million barrels, according to sources. The EIA data also revealed that gasoline inventories climbed by 3.7 million barrels, while distillate stockpiles edged up by 800,000 barrels last week. The S&P Global Platts survey had shown expectations for a supply climb of 1 million barrels for gasoline and a decline of 1 million barrels for distillate stockpiles. July West Texas Intermediate crude fell by 80 cents, or 1.3%, to $62.33 a barrel on the New York Mercantile Exchange. It was trading at $62.50 before the supply data.

Plant-based meal kit company Purple Carrot to be acquired by Japanese organic delivery service

7 hours ago

Purple Carrot, a U.S. plant-based meal kit company, said it will be acquired by Tokyo-based Oisix ra daichi Inc. in a deal valued at $30 million. Deal terms include an upfront payment of $12.8 million and an earn-out potential for $17.2 million through 2021. Purple Carrot is among the slew of meal-kit companies that have launched in recent years including Blue Apron Inc. and HelloFresh SE . Osisix was founded in June 2000 and generated about $580 million in revenue for the year ending March 2019, up 160% from the previous year. Purple Carrot launched in October 2014. The Invesco Dynamic Food & Beverage ETF has gained nearly 13% for the year to date, while the S&P 500 index is up 14% for the period.

Dow slips at the open as stock market awaits Fed minutes

7 hours ago

U.S. stock benchmarks opened lower Wednesday morning as markets awaited the release of Federal Reserve minutes that could shed light on the central bank's outlook for interest rates amid Sino-America trade tensions. The Dow Jones Industrial Average fell 55 points, or 0.2%, at 25,820, the S&P 500 index retreated 0.2% at 2,858, while the Nasdaq Composite Index slipped 0.2% at 7,768. Minutes from the rate-setting Federal Open Market Committee's April 30-May 1 meeting will be released at 2 p.m. Eastern Time, and come amid increasing expectations that the central bank will cut rates before year-end. In corporate news, shares of home-improvement retailer Lowe's Co. were under pressure, down 7.4%, after its earnings disappointed, while shares of Target Corp. soared more than 9% after its quarterly results. Both quarterly updates were released before the start of regular trade. And Qualcomm Inc. shares tumbled, after a federal judge ruled late Tuesday that the chip maker violated antitrust laws.

Nascar to buy International Speedway in deal valued at $2 billion, at a 7% premium to original per-share bid

8 hours ago

International Speedway Corp. announced Wednesday a deal to be acquired by Nascar Holdings Inc. in a deal valued at $2.0 billion. Under terms of the deal, Nascar will pay $45 in cash for each International Speedway share outstanding, which represents a 2.0% premium to the Class A shares' Tuesday closing price of $44.10, and 7.1% above Nascar's original bid in November of $42 a share. The deal is expected to close in 2019. International Speedway's stock, which is halted for news until 9:50 a.m. Eastern, has gained 0.6% year to date, while the S&P 500 has advanced 14%.

Qualcomm to appeal judge's ruling in favor of FTC litigation, stock tumbles on heavy volume

8 hours ago

Qualcomm Inc. said Wednesday that it "strongly disagrees" with the ruling of a federal judge in favor of the Federal Trade Commission's (FTC) suit alleging the mobile chips maker illegally suppressed competition. Qualcomm said it will "immediately seek a stay" of the U.S. District Court Judge Lucy Koh's judgment and an "expedited appeal" to the U.S. Court of Appeals for the 9th Circuit. Qualcomm's stock tumbled 11% on premarket leading volume of 6.4 million shares. "We strongly disagree with the judge's conclusions, her interpretation of the facts and her application of the law," said Qualcomm General Counsel Don Rosenberg. The stock has soared 46.4% over the past three months through Tuesday, boosted by the announcement last month that the company and Apple Inc. have dropped all lawsuits against each other. In comparison, the PHLX Semiconductor Index has edged up 0.7% the past three months and the S&P 500 has tacked on 2.6%.

Green Dot enters $100 million accelerated stock buyback program with Bank of America

8 hours ago

Green Dot Corp. said Wednesday it has entered a $100 million accelerated share buyback program with Bank of America Merrill Lynch . The bank, which targets low-income customers with a range of retail banking services, said it will receive an initial delivery of about 1.7 million shares. The final number will be based on its volume-weighted average stock price during the transaction, which is expected to be completed in 2019. Shares were up 2% in premarket trade, but have fallen 40% in 2019, while the S&P 500 has gained 14%.

Apple's EPS at risk of 29% hit if its products are banned in China, Goldman says

9 hours ago

Apple Inc.'s per-share earnings are at risk of shrinking by about 29%, or $3.35, if its products are banned in China in retaliation for measures taken by the U.S. government against Huawei, Goldman Sachs said Wednesday. "This represents 100% of estimated Apple earnings exposure to Mainland China and Hong Kong combined with some offset assumed for Sales & Marketing cost savings," analysts led by Rod Hall wrote in a note to clients. Based on the company's own disclosures, Apple's sales into Mainland China made up about 96% of total Greater China sales in 2013 and 2014; the company stopped making disclosures after 2015, but Gartner data suggests about 39 million iPhone shipments in Greater China in 2019, 83% of which went to Mainland China, 13% to Hong Kong and less than 5% to Taiwan. There is also risk for the company in its supply chain, most of which is based in mainland China, including the final assembly of the iPhone at Foxconn facilities. "We are not assuming restrictions on iPhone production in Mainland China at this point. Should China restrict iPhone production in any way we do not believe the company would be able to shift much iPhone volume outside of China on short notice, though actions that would push Apple production outside of China could have negative implications for the China tech ecosystem as well as for local employment," said the note. Goldman rates the stock as neutral and cut its price target to $178 from $184. Shares were down 1.4% premarket, but have gained 18% in 2019, while the Dow Jones Industrial Average , which counts Apple as a member, has gained 11% and the S&P 500 has gained 14%.

Chase tap-to-pay card by Visa can soon be used to ride New York City subways and buses

9 hours ago

J.P. Morgan Chase & Co. and Visa Inc. said Wednesday that Chase customers can soon use their Visa contactless cards to ride subways and buses in New York City. The use of the tap-to-pay cards will start May 31 for the 4, 5 and 6 subway lines between the Grand Central-42nd Street station in Manhattan to Brooklyn's Atlantic Ave.-Barclays Center station, and on all Staten Island buses. "Over time," all subway lines and buses will accept the contactless cards, the companies said. "Contactless payments have shaped the way consumers pay all over the world, saving valuable time and delivering a fast, easy and secure way to pay," said Dan Sanford, Visa's global head of contactless payments. J.P. Morgan Chase's stock slipped 0.4% in premarket trade and Visa shares edged up 0.2%, while futures for the Dow Jones Industrial Average declined 95 points, or 0.4%.

Affimed to end cancer program and focus on innate immunity portfolio, shares slide about 10%

9 hours ago

Clinical stage biotech Affimed N.V. said Wednesday it is terminating its phase I program for AFM11 to focus on its innate immunity portfolio. The company had put two clinical trials of the cancer treatment on hold back in October after one patient died and two others experienced life-threatening events in the high-dose group. The trials were testing the drug in patients with types of non-Hodgkin lymphoma and acute lymphoblastic leukemia. Heidelberg, Germany-based Affimed said it will start a study of AFM13 this year and enter the clinic with AFM24. ""We strongly believe our innate cell engagers could enhance current immuno-oncology approaches and address unmet patient needs in treating hematologic and solid tumor malignancies," Chief Executive Dr. Adi Hoess said in a statement. "We have determined that the optimal use of our resources at this time is to advance our innate cell engagers, focusing their development on indications with high unmet need and the potential for a rapid path to regulatory approval." The company's Chief Scientific Officer Dr. Martin Treder is stepping down to pursue new opportunities, but will remain as a consultant to the company. Affimed has received a milestone payment from Genentech, owned by Roche Group, triggered by the achievement of a milestone that was part of a research deal with Genentech to develop natural killer (NK) cell engager-based immunotherapeutics based on Affimed's ROCK(R) platform to treat multiple cancers. The company said it believes its 108.8 million euros of cash on hand is enough to fund its activities into 2021. Shares fell 9.6% premarket, but have gained 6.88.6% in 2019, while the S&P 500 has gained 14.3%.

Analog Devices' stock slips after profit and revenue beat expectations, but guidance was downbeat

9 hours ago

Shares of Analog Devices Inc. slipped 0.5% in premarket trade Wednesday, after the chip maker reported fiscal second-quarter earnings and revenue that beat expectations, but provided downbeat third-quarter outlook as a result of the U.S.'s export restrictions on a "large communications company." Net income for the quarter to May 4 fell to $367.9 million, or 98 cents a share, from $400.3 million, or $1.06 a share, in the year-ago period. Excluding non-recurring items, adjusted earning per share fell to $1.36 from $1.50, but was above the FactSet consensus of $1.31. Revenue slipped 2% to $1.53 billion, topping the FactSet consensus of $1.51 billion, as better-than-expected industrial, automotive and communications revenue offset a miss in consumer revenue. For the third quarter, Analog expects adjusted EPS of $1.22, plus or minus 7 cents, compared with the FactSet consensus of $1.38, and expects revenue of $1.45 billion, plus or minus $50 million, versus expectations of $1.55 billion. "The world around us remains volatile and uncertain, but when I take a step back and look past the geopolitical noise, I am confident that the macrotrends propelling our markets forward are creating unprecedented demand for the technologies we provide," said Chief Executive Vincent Roche. Analog's stock has rallied 16.4% year to date through Tuesday, while the PHLX Semiconductor Index has climbed 19.0% and the S&P 500 has advanced 14.3%.

VF Corp. shares slide as spin-off of Kontoor Brands jeans business is completed

9 hours ago

VF Corp. shares slid nearly 7% in Wednesday premarket trading after the company reported fiscal fourth-quarter earnings and gave full-year outlook amid the spin-off of the jeans business into the new Kontoor Brands. VF Corp. brands include Vans, The North Face and Timberland. Net income totaled $128.8 million, or 32 cents per share, down from $252.8 million, or 63 cents per share, last year. Adjusted EPS was 60 cents, ahead of the 58-cents FactSet consensus. Revenue totaled $3.21 billion, down from $3.05 billion last year and in line with the FactSet estimate. The company announced on April 30 that would spin off its jeans business, comprised of the Lee and Wrangler brands. VF Corp. stockholders of record as of May 10 will receive one share of the new Kontoor Brands stock for every seven shares of VF Corp. common stock, with distributed scheduled to be completed after the close of business Wednesday. Kontoor Brands has received approval to list under the ticker "KTB." Fiscal 2020 outlook reflects "management's best estimates" of the impact of this separation. In addition, VF Corp's adjusted amounts takes into account the sale of the Nautica brand, the acquisition of Williamson-Dickie, Icebreaker and Altra brands, and expenses and losses related to the divestitures of the Reef brand and Van Moer business. For fiscal 2020, VF Corp. expects revenue in the range of $11.7 billion to $11.8 billion and adjusted EPS in the range of $3.30 and $3.35. FactSet guidance is for sales of $14.5 billion and EPS of $4.23, which may not take the separation into account. VF Corp. stock has gained 29.1% for the year to date while the S&P 500 index has gained 14.3% for the period.

Advance Auto Parts stock gains after profit and revenue beat expectations

10 hours ago

Shares of Advance Auto Parts Inc. gained 0.7% in premarket trade Wednesday, after the auto parts retailer reported fiscal first-quarter earnings and revenue that beat forecasts. Net income for the quarter to April 20 rose to $142.5 million, or $1.98 a share, from $136.7 million, or $1.84 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $2.46, above the FactSet consensus of $2.37. Net sales rose 2.7% to $2.95 billion, just above the FactSet consensus of $2.94 billion, as same-store sales increased 2.7%. Free cash flow increased 19.9% to $143.2 million. The company expects 2019 net sales of $9.65 billion to $9.80 billion, compared with the FactSet consensus of $9.78 billion, and expects same-store sales growth of 1.0% to 2.5%. The stock has tacked on 2.4% year to date through Tuesday, while the S&P 500 has climbed 14.3%.

Canopy Growth acquires London-based skincare company This Works for 43 million pounds in cash

10 hours ago

Canopy Growth Corp. , the world's biggest cannabis company by market capitalization, said Wednesday it's acquiring London-based skincare company This Works for 43 million pounds ($54 million) in cash. This Works offers a range of skincare and sleep products, including deep sleep pillow spray, morning expert hyaluronic serum and skin deep dry leg oil. The deal "is a key aspect of a multi-faceted hemp and CBD strategy as Canopy Growth continues to build upon its vertically-integrated production and marketing platform, that currently includes thousands of acres of hemp production across several continents, hundreds of millions of dollars of capital investment into hemp-derived CBD production and processing, rapid expansion across the European Union and other key regions, and the introduction of new CBD-infused products and brands to the global beauty, wellness, and sleep solution space," Canopy said in a statement. This Works Chief Executive Anna Persaud will remain at the helm of the business once the deal has closed. Canopy is armed with a more than $4 billion balance sheet courtesy of an investment from Corona beer maker Constellation Brands Inc. last year. Canopy shares were up 0.7% premarket, and have gained 67% in 2019, while the S&P 500 has gained 14%.

Hexo names consumer goods exec Donald Courtney COO

10 hours ago

Canadian cannabis company Hexo Corp. said Wednesday it has named Donald Courtney as chief operating officer. Courtney has worked at food and beverage companies, including Mars Inc. and Pesi Bottling Group and has experience in technology from stints at Christie Digital and LG Electronics. He was most recently COO for MedReLeaf. Shares of Quebec-based Hexo were not active premarket, but have gained about 104% in 2019 to date, while the S&P 500 has gained 14%.

Eli Lilly's Insulin Lispro Injection available at half the list price of Humalog

10 hours ago

Eli Lilly & Co. said its lower-priced Insulin Lispro Injection is now available for order in pharmacies, per vial or in a package of five KwikPens. The drug giant said Lispro Injection's list price is 50% lower than its identical branded Humalog U-100. Lispro Injection has a list price of $137.35 per vial and $265.20 for a package of five KwikPens. "Because most insurance plans provide affordable copays for chronic medicines that are much lower than list price, people should ask their pharmacist whether Insulin Lispro Injection or Humalog is the lower-cost option for them," Lilly said in a statement. The stock, which was still inactive in premarket trade, has edged up 0.7% year to date, while the SPDR Health Care Select Sector ETF has gained 3.1% and the S&P 500 has rallied 14.3%.

Target's stock soars after profit, revenue and same-store sales rise above expectations

10 hours ago

Shares of Target Corp. shot up 7.7% in premarket trade Wednesday, after the discount retail giant reported a fiscal first-quarter profit, revenue and same-store sales that rose above expectations. Net earnings for the quarter to May 4 rose to $795 million, or $1.53 a share, from $718 million, or $1.33 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose 15.9% to $1.53, above the FactSet consensus of $1.43. Total revenue grew 5.0% to $17.63 billion, beating the FactSet consensus of $17.46 billion, as same-store sales growth of 4.8% topped expectations of a 4.1% increase. Comparable digital channel sales rose 42%, and contributed 2.1 percentage points to overall same-store sales. The company expects second-quarter adjusted EPS of $1.52 to $1.72, surrounding the FactSet consensus of $1.59, and affirmed its full-year EPS guidance of $5.75 to $6.05. The stock has gained 8.9% year to date through Tuesday, while the SPDR S&P Retail ETF has tacked on 5.1% and the S&P 500 has advanced 14.3%.