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EARLY MOVERS: The Children's Place shares sink on weak earnings; AbbVie slides after drug test cut short

Weak results and a suspension of a key drug test hits the stock of two companies as trading resumes in the US after a one-day break
retail products
The Children's Place shares take a beating on poor results

Shares of specialty retailer The Children's Place Inc (NASDAQ:PLCE) tumbled to its lowest level in 13 months after the company slashed its earnings and margin outlook.

The company reduced its fiscal 2018 adjusted earnings per share (EPS) outlook to between $7.69 and $7.79 from between $8.09 and $8.29. It also cut its adjusted operating margin guidance to a range of 7.7% to 7.8% from between 8.5% and 8.7%.

Sales rose 6.6% to $522.5 million while same-store sales expanded 9.5%, which outpaced expectations it would only increase around 8%.

Shares of The Children's Place crashed nearly 18.4% to $100.55 in Thursday's session. 

READ: AbbVie posts 2Q profit, revenue beats on healthy sales of arthritis top-seller Humira

AbbVie Inc (NYSE:ABBV) shares declined early Wednesday after the pharmaceutical company decided to stop enrollment for the TAHOE trial, a Phase 3 study evaluating Rovalpituzumab Tesirine (Rova-T) as a second-line therapy for advanced small-cell lung cancer (SCLC).

The Independent Data Monitoring Committee (IDMC) recommended the halt to enrollment because of shorter overall survival in the Rova-T arm, compared with the topotecan control arm.

AbbVie acquired Rova-T in its $5.8 billion acquisition of Stemcentrx in 2016. AbbVie wanted to enter the lucrative arena of solid tumors and reduce its dependence on its popular arthritis drug Humira.

Shares of AbbVie were down 2.3% to $88.44.

Contact Rene Pastor on [email protected]


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