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Banking industry

Market Reaction to Earnings Reports and Company News

Strategic Insights

— 2 min read

The major stock indices are expected to experience volatile trading following the latest earnings reports and significant company announcements. Sequenom Inc.'s shares plummeted 79% premarket after the company delayed the launch of a test for Down's syndrome. In contrast, MGM Mirage's shares surged 44% after its lenders and owners reached a deal to guarantee the completion of its $8 billion-plus resort in Las Vegas.

Meanwhile, Bank of America's shareholders voted to strip Ken Lewis of his chairman title, highlighting the precarious situation of the CEO. Patriot Coal Corp. swung to a first-quarter profit, beating expectations, while Green Mountain Coffee Roasters Inc.'s shares climbed 21% following the company's strong fiscal second-quarter results.

First Solar Inc.'s net income more than tripled, driven by surging revenue and margins. JDS Uniphase Corp.'s shares dropped 12% after the company reported revenue that fell short of analysts' estimates. Itron Inc.'s shares fell 11% after the company's first-quarter results disappointed Wall Street, and Flextronics International Inc.'s shares dropped 6.4% due to the company's weak fiscal first-quarter forecast.

Key Takeaways:

  • Sequenom Inc. delayed the launch of a test for Down's syndrome due to employee mishandling, resulting in a 79% drop in shares premarket.
  • MGM Mirage's shares surged 44% after a deal was reached to guarantee the completion of its $8 billion-plus resort in Las Vegas.
  • Bank of America's shareholders voted to strip Ken Lewis of his chairman title, highlighting the precarious situation of the CEO.
  • Patriot Coal Corp. swung to a first-quarter profit, beating expectations, with shares jumping 23% premarket.
  • Green Mountain Coffee Roasters Inc.'s shares climbed 21% following strong fiscal second-quarter results and the announcement to carry some of its products at Wal-Mart Stores Inc.
  • First Solar Inc.'s net income more than tripled, driven by surging revenue and margins, with shares up 15% premarket.
  • JDS Uniphase Corp.'s shares dropped 12% after reporting revenue that fell short of analysts' estimates.
  • Itron Inc.'s shares fell 11% after the company's first-quarter results disappointed Wall Street, and Flextronics International Inc.'s shares dropped 6.4% due to the company's weak fiscal first-quarter forecast.

Statistics:

  • 79%: The percentage drop in Sequenom Inc.'s shares premarket after the company delayed the launch of a test for Down's syndrome.
  • 44%: The percentage surge in MGM Mirage's shares premarket after a deal was reached to guarantee the completion of its $8 billion-plus resort in Las Vegas.
  • 23%: The percentage jump in Patriot Coal Corp.'s shares premarket after the company swung to a first-quarter profit.
  • 21%: The percentage climb in Green Mountain Coffee Roasters Inc.'s shares premarket after the company's strong fiscal second-quarter results.
  • 15%: The percentage increase in First Solar Inc.'s shares premarket after the company's net income more than tripled.
  • 12%: The percentage drop in JDS Uniphase Corp.'s shares after reporting revenue that fell short of analysts' estimates.
  • 11%: The percentage fall in Itron Inc.'s shares after the company's first-quarter results disappointed Wall Street.
  • 6.4%: The percentage drop in Flextronics International Inc.'s shares due to the company's weak fiscal first-quarter forecast.

Sources:

  • Dow Jones Commodities News Select via Comtex.
  • Dow Jones Newswires.
  • hotstocks@dowjones.com.

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