Stocks to Watch Wednesday: Exponent, Discover Financial, Canadian Pacific Railway, More

Canadian Pacific Railways’ Revenue Slips, Company Appoints New CEO

Canadian Pacific Railway Limited (USA) (NYSE:CP) posted second quarter EPS of $2.05, better than the consensus estimate of $2.04. Revenue for the quarter plummeted by 12% year-over-year to $1.45 billion however and missed estimates of $1.47 billion. The Canada-based transcontinental company had already warned of a revenue decline due to lower shipping volumes, the wildfires in Alberta, and a stronger domestic currency. Canadian Pacific Railway also announced the appointment of Keith Creel to the position of CEO. Mr. Creel will succeed Hunter Harrison effective July 1, 2017. CP shares are 3.7% in the green today.

Discover Financial Reports a Profitable Quarter

Discover Financial Services (NYSE:DFS)’s stock is making a move in the wrong direction today, down by 1.68% after the company posted second quarter EPS of $1.47, beating estimates of $1.42. The Riverwoods, Illinois-based payment services company’s aggregate loans jumped by 4% to $71.9 billion, mainly due to growth in student loans and credit card lending. Profit in the quarter jumped by 3% to $616 million. However, revenue for the quarter came in at $2.22 billion, slightly missing the consensus estimate of $2.23 billion. Discover Financial’s CEO said in a statement that the company experienced a “post-recession record” for new card accounts in the quarter.

38 hedge funds in our database were bullish on Discover Financial Services (NYSE:DFS) at the end of March, down from 47 funds a quarter earlier. The aggregate value of those 38 holdings was approximately $1.08 billion.

Exponent Posts Mixed Results, Cuts 2016 Guidance

Exponent, Inc. (NASDAQ:EXPO) is in the spotlight today after the company posted second quarter EPS of $0.43 and revenue of $77.3 million. While the bottom-line results were in-line with expectations, the top-line figure widely missed the consensus estimate of $80.46 million. The California-based company also cut its fiscal year 2016 outlook. Exponent now expects revenue before reimbursements to decline by 1%-to-2% year-over-year for the fiscal year. Underlying growth is also expected to be in the low single digits. Ten hedge funds out of those we track were shareholders of Exponent, Inc. (NASDAQ:EXPO) at the conclusion of the first quarter.

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