Under the shares of Armor Inc. needed more than 15% on Tuesday after the company reported quarterly results that highlighted sales struggles in North America.
The athlete and apparel trade has been under pressure to justify its recent stock price rally. his latest report, but the low expectations of North American business executives did not inspire confidence. Under the armor
executives told investors that they now expect sales in North America to show a slight decline this year, as previously forecast " relatively "flat results. "
Chief Financial Officer David Bergman said the forecasts reflected the company's efforts to reduce its dependence on price channels that have hurt profits in the past.
A disappointing forecast coupled with poor North American performance in the second quarter helped send stocks to their worst one-day decline since late 2017. Under Armor's challenges in a key region, they also overshadowed signs of progress elsewhere, including in terms of stocks and margins.
dew for Bernstein analyst Jamie Meriman is whether profitability improvements will be enough to support Under Armor stocks, while the company only manages to increase overall sales at a low single-digit rate by trading shares at a premium over apparel peers, it will have investors in doubt.
• Altria Group Inc.
surprised investors with its $ 1 billion buyback announcement, but that was not enough to cover up the lasting problems in the cigarette manufacturer's core business. The company saw the volume of cigarette shipments drop by 7% after considering factors such as trade in inventory. As e-cigarettes are gaining momentum, the Altria management is taking a dark look at cigarette trends throughout the year. The company now forecasts that the volume of the home-made cigarette industry will decline by 5% to 6% for the whole year, whereas it has previously modeled a decline of 4% to 5%.
Appeared this afternoon
will seek to move past emerging market problems to a quarter where it faces "low expectations".
This is the opinion of several analysts who say that investors are not particularly bullish on thinking about Apple's ability to drive smartphone upgrades, as the company deals with geopolitical headwinds and the lack of a significant catalyst in the fall. The June quarter is usually dreamy for Apple, as Apple's current crop of new iPhones has disappeared for months while its next batch is on the horizon, but Apple's main figure in the afternoon will be its outlook. This number will not only reflect management's expectations about the recovery in China, but it should also reflect how Apple predicts that it will launch its next wave of phones, as the quarterly quarter typically involves several weeks of sales of the latest models.
Apple Profit: It looks like 2016 again, which is not a good thing
New products will be a key topic for Advanced Micro Devices Inc.
AMD, + 0.03%
too, after a long rally in the stock with the expectation that the company will be able to gain market share with its increasingly competitive offerings.
Don't miss: Apple, AMD stock traders don't expect fireworks after earnings reports
Although hopes are not particularly high for Apple, AMD faces "difficult, seasonal expectations" the second, third and fourth quarters, according to Christopher Roland of Susquehanna. This is because the company gave a particularly pink outlook earlier this year. AMD's third-quarter prospects will be a major focus in the upcoming report, as they should show management's forecasts for the new AMD 7-nanometer offerings that began in early July and should increase as the second half of the year progresses.
AMD profits: With high-priced stocks for more than a decade, prospects must be strong
Also on the test are reports from Electronic Arts Inc.
EA, -1.60% ,
FEYE, + 0.76% ,
Gilead Sciences Inc.
GILD, -1.11% ,
and Groupon Inc.