The start of earnings season was marked with a stock market rally and a surge in oil prices on Tuesday.The S&P 500 was in the black at day’s end, finishing 1% higher, while the Dow Jones Industrial Average was up a strong 0.9%.
CSX Corporation (NASDAQ:CSX) and Adtran, Inc. (NASDAQ:ADTN) released their quarterly earnings, while Valeant Pharmaceuticals Intl Inc (NYSE:VRX) was hit with more troubling news.
Here’s what you need to know.
Valeant Pharmaceuticals Intl Inc (VRX)
Valeant Pharmaceuticals shares look likely to open Wednesday lower after
from one of its bondholders.
The company was informed of a potential default by multi-strategy investment firm Centerbridge Parents thanks to Valeant’s failure to file its annual report in a timely fashion. The firm has a stake of about $250 million in the company, which accounts for 5.5% of VRX shares.
The pharmaceutical giant’s first default notice came in the form of a warning issued during its most recent preliminary earnings call, on March 15. Valeant has until June 11 to file the K-form if the company is to avoid the default.
VRX is off 3% in Wednesday’s premarket trading.
CSX Corporation (CSX)
Rail company CSX posted its Tuesday afternoon, and despite a lackluster report, shares appear to be headed higher.
CSX merely met the consensus earnings estimate of 37 cents per share, and revenues of $2.62 billion actually fell below a bar for $2.68 billion. Those figures were 18% and 14% lower year-over-year as well.
CSX’s revenue miss was partially caused by a , falling 31% in the quarter. The company has reduced costs by cutting workers in recent months.
Nonetheless, Wall Street is driving CSX shares 3% higher in Wednesday’s premarket action, which could help CSX bounce off its 50-day moving average.
Adtran, Inc. (ADTN)
The telecommunications network provider posted its Tuesday afternoon, and shares were popping as a result.
Adtran reported adjusted earnings of 14 cents per share, up from a dime per share in the year-ago period and 6 cents better than the consensus estimate. Revenues of $142.2 million just cleared Wall Street’s bar of $141.07 million.
CEO Tom Stanton said that ADTN’s recent results exceeded expectations thanks to higher sales in both its products and services businesses.
Adtran shares were up some 6% in Tuesday’s pre-market trade.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
