Last Week’s Biggest Stock Movers: CommScope, Green Dot
Plenty of stocks go up and down in any given week. The gainers inspire us to keep investing. The decliners keep greed in check while reminding us about the risks of the equity markets. Let’s go over some of last week’s best and worst performers.
CommScope (COMM) — Up 30 percent last week
Sometimes it’s the acquirer that gets a Wall Street pop. Shares of CommScope moved higher after the company announced that it would shell out $3 billion for TE Connectivity’s (TEL) broadband network solutions business.
It’s a big bite for CommScope, which commanded a market cap roughly in line with the $3.8 billion in revenue that it has generated over the past four quarters ahead of the news. However, TE Connectivity should boost CommScope’s revenue by 50 percent, and there should be operating synergies that translate into even bigger gains on the bottom line. The market doesn’t usually like it when a company goes on a shopping spree, but it warmed up to this deal.
Amazon.com (AMZN) — Up 13 percent last week
The leading online retailer moved higher after posting a strong quarterly report. Amazon’s adjusted profit of 45 cents a share was nearly three times better than the 17 cents a share in net income that analysts were forecasting.
Sales growth for the holiday quarter did decelerate to 15 percent, but that’s still better than that of most traditional retailers. Amazon’s spending a lot of money on new growth initiatives, but its operating profit still managed to inch higher.
Universal Display (OLED) — Up 13 percent last week
Shares of Universal Display spiked after the company announced a deal with TV manufacturer LG (LPL) that covers Universal Display’s patents as well as a purchase agreement for materials. Universal Display is a pioneer in organic light-emitting diodes. OLEDs have emerged as a cost- and energy-efficient lighting source for TVs, monitors, and appliance displays. Universal Display has had its ups and downs over the years, but the market clearly likes when it expands its reach with a major player.
Green Dot (GDOT) — Down 24 percent last week
Shares of the prepaid credit card specialist shed nearly a quarter of their value after it posted uninspiring financial results. Green Dot clocked in with revenue and net income that fell just short of analyst forecasts.
Green Dot also initiated its 2015 guidance. It didn’t wow Wall Street pros, who went on to lower their profit estimates on the company.
Tuesday Morning (TUES) — Down 15 percent last week
Shares of the chain of nearly 800 discount stores fell after the company posted quarterly results. The financials appear solid on the surface. Net sales rose 5.5 percent, fueled by a 7.6 uptick in comparable-store sales. Operating income soared 32 percent, but the eventual profit of 54 cents a share fell just short of Wall Street targets. This is the third quarter in a row that Tuesday Morning has missed analyst earnings estimates.
Angie’s List (ANGI) — Down 14 percent last week
Subscription-based referral website Angie’s List closed lower in each of the week’s five trading days. Investors got cold feet after the panel of Indianapolis’ City-County Council moved to table a proposed $18.5 million tax incentive for Angie’s List if it hired 1,000 new employees in the city and relocated the 800 existing hires to a depressed neighborhood.
Tabling the decision was done to give Angie’s List more time, but given its recent struggles, one has to wonder if it’s ready for that kind of bump in payroll.
[source : dailyfinance.com]