Stocks to watch: Hewlett-Packard, Costco
H-P announces massive layoffs, and Costco reports better-than-expected results.
Hewlett-Packard (HPQ) announced Wednesday that it will cut 27,000 workers. The computer maker also reported second quarter results. Earnings per share were down 21% from last year, while revenue fell 3% to $30.7 billion. Investors were pleased with the earnings report as shares jumped 9% in after-market trading.
Costco (COST) reported better-than-expected fiscal third-quarter earnings. The wholesale retailer's earnings jumped 19% to $386 million from last year's profit of $62 million. Costco has plans to open six new locations in just this year. COST closed Wednesday at $83.31, and in premarket trading has climbed to $84.44.
Jewelry distributor Tiffany & Co's (TIF) first quarter results failed to sparkle, as earnings came in below the Street's forecast, and the company lowered its 2013 sales outlook. TIF reported net earnings of $82 million, which was only up 1% from last year's $81 million. The company now expects net sales to grow by 7%-8% throughout the rest of the year, compared to its previous guidance of 10% growth. Shares of the retailer closed Wednesday at $61.80 and fell some 9% in premarket trading to $56.26.
A European Union court dismissed MasterCard's (MA) challenge to a 2007 ruling banning its multilateral interchange fees. These fees are meant to be exchanged between the banks that service credit and debit payment businesses, but the courts have decided that the charges for cross-border payment card transactions broke guidelines regarding restrictive business practices. MA closed Wednesday at $417.09, up 11.87% year-to-date.
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