Tonight is shaping up to be a lively -- and for some, lucrative -- after-hours session for night traders. There's some interesting news to digest, and at least a few stocks on the move as a result.
Which companies are these? Read on to find out.
Illumina cuts its full-year guidance
Shares of DNA sequencing company Illumina (NASDAQ:ILMN) are really taking it on the chin tonight. After market close, the company served notice that its quarterly revenue will fall short of expectations. It also chopped its fiscal 2019 top-line guidance.
Illumina said its preliminary figures show that it will book $835 million for its Q2, a $50 million shave from its expectations, although still higher than Q2 2018's $830 million. For the entirety of fiscal 2019, the company believes its top line will land 6% higher than the 2018 result of $3.3 billion; previously it anticipated 13% to 14% growth.
In the press release conveying the unhappy news, Illumina said the lower-than-expected Q2 revenue result is due mainly to sales that did not go through as anticipated in the population genomics segment. It also pointed to "ongoing weakness" with its direct-to-consumer (DTC) efforts, among other factors.
The company attempted to sound an optimistic note despite the setback, writing that "our preliminary analysis suggests that these challenges are transitory and do not reflect a macro change to the fundamentals of our business."
It doesn't seem that investors are taking the company at its word. Illumina's stock is down by 16% tonight from its closing market price.
The timing of this announcement is not ideal for the stock. It had recently been trading at its all-time high, on the back of positive fundamentals and anticipated progress in its looming acquisition of Pacific Biosciences.
Colgate-Palmolive's $1.7 billion buy
Consumer goods giant Colgate-Palmolive (NYSE:CL) is soon to be one asset larger. The company announced that it has reached an agreement to purchase the skin care business of France's Laboratoires Filorga Cosmetiques.
Colgate-Palmolive will pay 1.5 billion euros ($1.7 billion) for the business. It will fund this through a combination of cash and debt.
Filorga makes a line of high-end, antiaging skin care products. It has a global presence, and is particularly strong in European countries such as its native France and Italy. It is also prominent in China.
The acquisition is part of Colgate-Palmolive's efforts to bolster its presence on comparatively high-margin segments such as pet nutrition and personal care.
"We are excited that this acquisition will add a high-growth, profitable, global skin care asset to the Colgate portfolio with the opportunity to drive continued growth through expanded distribution and awareness," Colgate said in the press release heralding the deal.
The Filorga acquisition is subject to approval by the relevant regulatory bodies. Colgate-Palmolive expects it to close in Q3. The company said it would likely have no impact on fiscal 2019 profitability.
It might not have much of an impact on investor sentiment, either (although on the back of some recent good results, this has been largely positive this year). In after-market action, Colgate-Palmolive's stock is down, but only marginally.
New CEO at Accenture
Accenture (NYSE:ACN) announced after market close today that it has selected a new leader.
The big consultancy is tapping company insider Julie Sweet to be its new CEO, replacing interim CEO David Rowland. Sweet will begin her tenure on Sept. 1, at which point she will also take a seat on the board of directors. Rowland is to become executive chairman at that time.
Sweet has been at Accenture since 2010. At the moment she is CEO of the company's North America division, its most significant region. Previously, she served as the company's general counsel, chief compliance officer, and secretary.
The company veteran appears to be a solid choice to fill the CEO's seat. Accenture's North America operations posted 9% sales growth in the most recently reported quarter, topping the figures of other important regions. Meanwhile, the company as a whole has delivered encouraging improvements on both the top and bottom lines recently.
Accenture's stock is up slightly in after-hours trading this evening.