Here’s Why These Five Stocks Are in Spotlight on Tuesday

Markets are trading in the red on Tuesday as investors gauge the latest Commerce Department which showed that consumer spending increased 0.4% in June, better than the expected 0.3%. However, income growth rate in the month was 0.2%, slightly less than the forecasts.

Among the stocks that are in the spotlight today are Dun & Bradstreet Corp (NYSE:DNB), Frontier Communications Corp (NASDAQ:FTR), Mallinckrodt PLC (NYSE:MNK), AmerisourceBergen Corp. (NYSE:ABC), and Procter & Gamble Co (NYSE:PG).  Let’s take a closer look at the latest developments surrounding each of these companies and see what the investors from our database think about them.

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Dun & Bradstreet Beats Estimates

Dun & Bradstreet Corp (NYSE:DNB)’s stock has gained more than 5% so far today on the back of the company posting better-than-expected second-quarter earnings. The commercial data provider reported EPS of $1.37, surpassing the estimates of $1.18, but revenue of $389.8 million fell short of the consensus estimate of $394.86 million. For the full year, the company expects adjusted diluted EPS growth in the range of -2% (down) to 3% and revenue growth between 1.5% and 3.5%. A total of 20 funds tracked by Insider Monkey were long Dun & Bradstreet Corp (NYSE:DNB) at the end of the first quarter.

Frontier Communications Misses Estimates

Frontier Communications Corp (NASDAQ:FTR)’s stock has slid by around 6.50% after the company missed analysts’ forecasts on second quarter earnings.  The Connecticut-based telephone company posted a net loss of $80 million, or $0.07 per share, worse than the expected loss of $0.03 a share. Revenue in the quarter totaled $2.61 billion, less than the estimated $2.74 billion. Frontier Communications also narrowed its 2016 guidance and currently expects capital expenditures to be in the range of $1,275 million to $1,325 million, while adjusted free cash flow is estimated between $825 million and $900 million. As of the end of March, 27 investors from our database own shares of Frontier Communications Corp (NASDAQ:FTR).

Om the next page, we will discuss Mallinckrodt, AmerisourceBergen and Procter & Gamble.

Mallinckrodt Posts FQ3 Results

Mallinckrodt PLC (NYSE:MNK)’s shares have skyrocketed by over 11% so far today after the company reported fiscal third-quarter earnings of $2.20 per share on $970.6 million revenue, beating analysts’ estimates of $2.00 in EPS and $920.35 million in revenue. For the full fiscal year, the Dublin, Ireland-based pharmaceutical company sees EPS above the high end of the previously provided range of $8.15 to $8.50. At the end of the first quarter, 35 funds among those tracked by us held stakes in Mallinckrodt.

AmerisourceBergen Beats FQ3 Estimates

AmerisourceBergen Corp. (NYSE:ABC)’s shares have inched up by around 4% after the company beat analysts’ estimates for the fiscal third quarter results. The Pennsylvania-based drug wholesale company reported earnings of $1.37 a share, versus expectations of $1.27 and revenue of $36.9 billion slightly topped the consensus estimate of $36.71 billion. AmerisourceBergen said in a statement that gross profit in the fiscal fourth quarter will be under pressure due to weaker generic pricing trends and lower contributions from new generic drugs. For the full fiscal year, the company sees its EPS between $5.50 and $5.57, versus the consensus estimate of $5.50. The company also expects adjusted diluted earnings per share in fiscal year 2017 to grow 4% to 6% above the midpoint of the fiscal 2016 guidance. Our data show that 37 smart money investors were long AmerisourceBergen Corp. (NYSE:ABC) at the end of the first quarter of 2016.

Procter & Gamble Beats Estimates

Investors are watching Procter & Gamble Co (NYSE:PG) closely today after the company reported better-than-expected fiscal fourth quarter, mainly due to cost cutting measures, product line simplification, and new investments in advertising. The company earned $0.79 per share, surpassing the forecast of $0.74 EPS. Revenue of $16.1 billion inched down by 2.7% on the year, but topped the consensus estimate of $15.83 billion. To offset slower growth, the world’s largest consumer products maker is eyeing to cut $10 billion in costs. Procter & Gamble sees full-fiscal 2017 EPS at $3.67, versus the consensus of $3.96. Donald Yacktman’s Yacktman Asset Management owns about 18.78 million shares of Procter & Gamble Co (NYSE:PG), as of the end of the second quarter.

 

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