Shares of Michael Kors slipped, despite a dazzling quarter. The high-end retailer posted results that easily topped estimates, with same-store sales climbing 24 percent. But investors worry that the company won’t be able to avoid the discounting that’s weighing on the rest of the retail industry. Also the company’s outlook for profit and sales for the current quarter was below estimates and it said it expects margins to shrink as it expands in Europe. Shares fell almost six percent to $77.01.
Cardinal Health’s declining revenue overshadowed its earnings beat. The drug wholesaler said the expiration of its contract with Walgreen’s was what weighed on its earnings report. The company noted that it did post strong results despite a year of big transitions for the overall industry. Still, shares were down nearly three percent to $70.28.
ITT Educational Services
ITT Educational Services fell to its lowest level in nearly 14 years after the for-profit college operator said a deal to sell of of its properties fell through. A potential buyer, College Portfolio, dropped out after ITT refused to extend a due diligence period. The stock plunged 46 percent to $7.72.
Ocwen Financial also fell on news New York’s top financial regulator is investigating whether the company is overcharging struggling home owners for insurance. Shares fell 2.5 percent to $26.98.
Amgen saw its shares rise after the company said its blood cancer drug med its goal in a late-stage trial. The FDA granted the drug accelerated approval status in 2012 for use in multiple myeloma, the second most common form of blood cancer.
Tekmira Pharmaceuticals & Biocryst Pharmaceuticals
Two companies working hard on experimental Ebola treatments. Tekmira Pharmaceuticals opened strongly on hopes that a trial of its treatments for the virus will be renewed by the FDA, but later shares fell on reports that another drug maker could be first to see its drug used to treat the outbreak in Africa. Biocryst also has a treatment in the works and it has some support from the National Institute of Health. Shares of Tekmira fell seven percent to $13.26. Biocryst saw its shares rise about 5.5 percent to $13.22. Its worth mentioning that both of these are small-cap stocks.
Tenet Healthcare posted a narrower than expected loss late today. The hospital operator also raised its full-year outlook saying patient admissions grew at near record rates. Shares were volatile in after-hours trading. During the regular session the stock was nearly two percent higher at $53.30.