Stock Market Today: Coach's Weak Holiday and United Technology's Spiking Profits

Why Coach, United Technology, and Abbott Labs stocks are on the move today.

Jan 22, 2014 at 9:00AM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Expect a weak start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) lost 35 points, or 0.2%, in premarket trading this morning. We are a few days into earnings season, and so far 65 members of the S&P 500 index have posted their quarterly results -- with two-thirds of that group beating profit and sales estimates, according to Bloomberg. Meanwhile, new earnings announcements have a number of stocks on the move this morning, including Coach (NYSE:COH), United Technologies (NYSE:UTX), and Abbott Labs (NYSE:ABT).

Coach posted a 6% decline in quarterly revenue, to $1.42 billion, as the retailer continued to struggle in reconnecting with fashion shoppers. Growth in the company's men's, footware, and Asian markets wasn't enough to overcome a big drop in its women's handbag and accessories business, and comparable-store sales dove by 13.6%. Coach's earnings fell to $1.06 a share for its second quarter, which was 14% below last year's result. Management admitted that those holiday-quarter results were "disappointing," but pointed to success in China, where sales grew by 25%, and to upcoming new product launches as reasons for optimism. Investors don't appear to be sold on that view, as Coach's stock is down 7.6% in premarket trading.

United Technology this morning booked a 29% boost in adjusted earnings for the fourth quarter, to $1.58 a share. Sales ticked higher by 2% to reach $16.8 billion. United Technology's aerospace and airline parts businesses were standouts in the quarter, as they both booked 20% order growth and helped organic sales rise by 4% overall. And, thanks to accelerating order growth toward the end of the year, the company was able to affirm its outlook for 2014, saying earnings should come in at about $6.70 a share on revenue of $64 billion. The stock is down 0.5% in premarket trading.

Finally, Abbott Labs posted fourth-quarter earnings of $0.58 a share on sales of $5.66 billion. Both figures were about even with what Wall Street expected. Results were helped along by a boost in Abbott's diagnostics business, which grew by 9% in the quarter. Abbott also issued earnings guidance for 2014, saying that it expects to book profit of $2.21 a share, exactly what analysts had targeted. The company boosted its share repurchase plans as well, to $2 billion for the year. The stock is up 1.2% in premarket trading.

Start 2014 off right
Abbott has been a good stock lately, up 20% in the last year. But there's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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