CVS Health Corp (NYSE:CVS) shares dropped 8% Wednesday, after reporting weaker-than-expected earnings forecast for 2019. This comes after the company closed a $70 billion deal to acquire health insurer Aetna in November.
The company said its results this year will be dragged down by rising costs, along with poor results from a takeover of nursing home pharmacy Omnicare.
Shares were down 8.1% at $64.22 in New York.
Southwest Airlines Co (NYSE:LUV) fell nearly 5.7% to $54.41 after slashing its revenue guidance. The recent US government shutdown hit Southwest hard, with the company stating it cost it $60 million in sales.
Further pressure came from an analyst downgrade to "sell" by Goldman Sachs, which also slashed the price target for the stock by 18%, from $66 to $54.
Garmin Ltd (NASDAQ:GRMN) shares skyrocketed Wednesday, after the company crushed analyst expectations for its fourth-quarter earnings. Shares were up 17% at $83.06.
Shares were at an 11-year high, on the back of earnings that showed revenue from Garmin’s outdoor segment increasing 25% in 4Q “with significant contributions from adventure watches,” the company said in a statement Wednesday. The company is forecasting 2019 revenue of about $3.5 billion, up from the $3.43 billion estimate of analysts.
Trade-exposed stocks, such as Caterpillar Inc (NYSE:CAT) and Boeing Co (NYSE:BA) perked up by Wednesday's close.
Caterpillar was up 3.3% at $140.31, with Boeing up 1.3% at $421.55.
Contact Katie Lewis at katie@proactiveinvestors.com