The Nasdaq is leading the way today with the help of Apple’s better-than-expected earnings.
The Nasdaq was rising by 22 points to 5,132, while the Dow Jones Industrial average gained just 8 points to trade at 18,481. The S&P slipped by 3 points to 2,165 as a result of Coca-Cola cutting its sales outlook and the S&P Retail ETF dropped by 21 cents to $45.04.
Earnings are beginning to roll in from shopping center real estate companies and while results may be decent, investors aren’t too thrilled.
Simon Property Group Inc. stock fell more than 1 percent to $221.07 even as the mall operator delivered strong results for the second quarter and raised guidance for the full year. Net income for the quarter ending June 30 fell to $455.4 million, or $1.45 a diluted share, down from $472.9 million, or $1.52, a year ago. Last year’s bigger number was attributed to a gain on the sale of marketable securities. The Capital IQ estimate was $1.46 and the analyst miss was the reason the stock was slipping in early trading.
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Value-oriented shopping center company DDR Corp. was also down slightly to $19.25 for a loss of 9 cents. DDR’s funds from operations of 33 cents beat last year’s number and analysts’ estimates by 2 cents. Total revenue was $245.9 million, which beat analysts’ estimates of $244 million, but was lower than last year’s $248.9 million. Rents were up 3.8 percent year-over-year. DDR raised its 2016 FFO range to $1.23 to $1.26 from $1.20 to $1.25.
Gildan Activewear fell more than 4 percent to $29.52 after acquiring sock company Peds Legwear and delivering second-quarter results that missed analysts’ expectations and the company lowered expectations for the year. Net income for the quarter fell to $94.7 million, or 40 cents a diluted share, down from $99.4 million, or 41 cents, a year ago. Adjusted earnings per share totaled 41 cents and was 1 cent below the 42 cents analysts projected. Peds was purchased for $55 million and generates annual sales of $80 million.
Coach Inc. shares were getting a nice pop from an upgrade by Credit Suisse analysts. The handbag and accessory giant rose 2 percent in early trading, but lately was only up 10 cents to trade at $43.23. Credit Suisse lifted the rating to “outperform” from “neutral” on the basis that the core business has stabilized. The analysts also think that there could be acquisitions in the future.
Looking ahead, more retail real estate investment trusts will report earnings on Thursday. Get ready for CBL & Associates Properties Inc., Kite Realty Group Trust and Taubman Centers Inc. Also, online retailer Amazon releases its earnings on Thursday.