Major benchmarks pulled back on Thursday after President Trump declared he's "not happy" with the Federal Reserve's interest rate hikes, overshadowing a largely positive start to corporate earnings season.
Comcast lowers its paddle
Shares of Comcast climbed 2.6% after the media conglomerate announced it will no longer pursue an acquisition of Twenty-First Century Fox's (NASDAQ:FOX) assets, opting instead to focus on acquiring European pay-TV service Sky.
For perspective, Disney (NYSE:DIS) agreed late last year to acquire most of the assets of Fox in an all-stock deal valued at approximately $52.4 billion. But Comcast subsequently responded with its own all-cash offer to buy Fox for $35 per share, or $65 billion. Then last month, Disney upped the ante with a mammoth $71.3 billion cash-and-stock bid, noting that the "intrinsic value of [Fox's assets] has increased" since its initial offer was made.
"I'd like to congratulate Bob Iger and the Team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company," stated Comcast Chairman and CEO Brian Roberts.
Tile Shop lays down a solid quarter
Tile Shop Holdings stock popped 12.1% in the wake of the tile retailer's stronger-than-expected second-quarter results. Revenue increased 3.9% year over year to $92.9 million, as contributions from new locations more than offset a 1.8% decline in comparable-store sales. On the bottom line, that translated to net income of $5.0 million, or $0.10 per share, down from $0.15 per share in the same year-ago period. But analysts were only anticipating earnings of $0.08 per share on revenue of $90.4 million.
"During the second quarter, we continued to improve our assortment and grow our pro customer base," added interim CEO Robert Rucker. "We also improved our store experience through the combination of store remodel and store merchandising investments."
Chart Industries bumps guidance
Finally, shares of Chart Industries jumped 14.2%. The gas-processing equipment and service company announced impressive second-quarter results, with quarterly revenue up 34% year over year to $319.9 million, while adjusted earnings more than doubled over the same period to $0.55 per share. Both figures arrived well above investors' expectations for earnings of $0.44 per share on revenue of $299.7 million.
"Our second-quarter results reflect the past three quarters' order strength," added CEO Jill Evanko. "With the strength in packaged gas, order activity in Asia, and European [liquefied natural gas] vehicle tank and trailer demand, combined with our right-sized cost structure, we expect to see the second half of 2018 at higher sales and earnings levels than the first half of the year."
As such, Chart Industries increased its full-year 2018 guidance to call for revenue of $1.20 billion to $1.25 billion (up from $1.15 to $1.20 billion previously), and for adjusted earnings per share of $1.85 to $2.05 (up from $1.75 to $2.00 before).
Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Chart Industries and Walt Disney. The Motley Fool recommends Tile Shop Holdings. The Motley Fool has a disclosure policy.