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EARLY MOVERS: Fresenius down on profit warning; Broadcom surges on results beat

United Natural Foods Inc shares reel from weak earnings, Yelp buoyed by joining S&P MidCap index
Stock trader watching price movements.
Fresenius shares reel while those of Broadcom climb in Friday's premarket

Shares of Fresenius Medical Care AG & Co (NYSE:FMS) sank on Friday after the company issued a profit warning.

In a statement released Thursday, Fresenius said that given its latest expectations for 2018 and 2019, it “now believes its ambitious group targets for 2020 will not be met”.

The downgrade was caused by the group’s underperforming hospitals and dialysis business, but also the need to ramp up investment next year.

Shares of Fresenius fell almost 8.7% to $35.82 in early trade.

Chipmaker Broadcom Inc's (NASDAQ:AVGO) stock jumped after it reported beats on both its top and bottom lines in its fourth quarter results.

The company reported earnings per share of $5.85, up from the expected $5.56 per share, according to a poll by Bloomberg analysts. 

Revenue also beat expectations at $5.45 billion, with analysts expecting revenue of $5.40 billion.

Broadcom stock rose 4.3% to $237.03.

READ: Broadcom wins applause from Wall Street after posting solid fiscal 3Q profits

Organic foods company United Natural Foods Inc (NASDAQ:UNFI) reported weak earnings for its fiscal first quarter, causing shares to slide on Friday.

The company said earnings per share stood at $0.55, compared with an estimate of around $0.74 and earnings in the year-ago period of $0.62.

Revenue for the quarter though came in higher than expected as it hit $2.87 billion for the quarter ended October 2018, compared with year-ago revenues of $2.46 billion.

Shares of United Natural Foods dropped around 24.7% to $14.86, just above the 52-week low of $14.46.

Yelp Inc (NYSE:YELP) shares moved higher after it was announced it will be joining the S&P MidCap 400 from the start of trading on Wednesday, December 12.

Yelp operates a platform which connects people with local businesses and is particularly known for its restaurant reviews.

The San Francisco-based company will be added to the S&P MidCap 400 GICS (Global Industry Classification Standard) Interactive Media & Services Sub-Industry index.

Yelp shares climbed nearly 2.8% to $35.36.

Contact Rene Pastor by [email protected]


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