Major benchmarks climbed on Tuesday after China's central bank allowed the Chinese yuan to strengthen slightly against the U.S. dollar -- a day after the Middle Kingdom roiled markets by letting the currency fall to its lowest level against the dollar in more than a decade. Still, the shift did little to ease broader concerns of an escalating trade war between the two countries, and stocks only partially recouped Monday's steep losses.
Today's stock market
|Index||Percentage Change||Point Change|
As for individual stocks, Take-Two Interactive (NASDAQ:TTWO) managed to outpace the broader market's gains after posting a strong Q1 and raising its full-year guidance, but Dean Foods (NYSE:DF) plunged following a disappointing quarterly update.
Dean Foods goes cold
Shares of Dean Foods plummeted 36.5% after the food and beverage company announced significantly weaker-than-expected second-quarter 2019 results. Net sales fell 5.5% year over year to $1.843 billion, translating into an adjusted (non-GAAP) net loss of $33 million, or $0.36 per share. Analysts, on average, were looking for an adjusted net loss of $0.13 per share on revenue closer to $1.88 billion.
To be fair, that loss technically marked a sequential improvement from the first quarter of 2019, so management remains optimistic.
"Dean Foods is committed to providing consumers with wholesome, nutritious products they need to live healthy and happy lives and I an enthusiastic about joining as CEO," stated recently appointed Chief Executive Officer Eric Beringause. "Since stepping into the role last week, I am taking a fresh look at the direction of the business."
Take-Two levels up
Shares of Take-Two Interactive jumped 8% after the video game giant announced impressive fiscal first-quarter 2020 results.
Revenue soared 39% year over year to $540.5 million, while bookings climbed 46% to $422.2 million, notably led by the strength of its NBA 2K19, Grand Theft Auto, Red Dead Redemption, Borderlands, and WWE-based game franchises. Analysts, on average, were expecting slightly less revenue and significantly lower bookings of $357 million.
Looking to the bottom line, that translated into gross profit of $299 million -- which was above guidance for $280 million -- and net income of $46.3 million, or $0.41 per share.
Chairman and CEO Strauss Zelnick called it a "terrific start" to the fiscal year, leading the company to raise its full-year guidance to call for net revenue of $2.83 billion to $2.93 billion, up from $2.7 billion to $2.8 billion previously.