Lululemon Athletica Inc (NASDAQ:LULU) surged in Wednesday's extended trading after delivering a first-quarter outlook that impressed investors. The athletic-wear retailer said it expected earnings per share of $0.68 to $0.70, compared with the average analyst estimate of $0.68. The company projected revenue of $740 million to $750 million, compared with the consensus of $743.7 million.
Shares of Lululemon surged 9.2% to $160.30 in Wednesday after-hours trading.
Salesforce.com Inc (NYSE:CRM) shares fell after 50 women sued the company for allegedly profiting off sex trafficking by supporting the now-decommissioned Backpage.com, Bloomberg reported. The women, who describe themselves as survivors of sex trafficking, said the cloud-computing company helped facilitate trafficking by providing database tools to market women to “pimps, johns and traffickers” on Backpage.
The stock dropped 2.7% to close at $155.12.
Southwest Airlines Co (NYSE:LUV) shares gained after Boeing Co (NYSE:BA), as CNBC reported, announced a software fix for Boeing 737 Max 8 jetliners. The airline operates 34 of the planes, which were recently grounded following a deadly plane crash. The groundings are expected to cost the Dallas-based company $150 million in the first quarter, in addition to an estimated $60 million lost thanks to the government shutdown. The company lowered its projected revenue growth per available seat mile range by 1% to between 2% and 3%.
The stock increased 2.2% to $49.83.
Skechers USA Inc (NYSE:SKX) stock was off and running Wednesday after Susquehanna analyst Sam Poser upgrade the shoe retailer to Positive. Poser boosted the Manhattan Beach, California company’s price target to $37 from $32, a 19% increase over Tuesday’s close.
Shares climbed 3.4% to $32.58.
Centene Corp (NYSE:CNC) agreed to buy rival health insurer WellCare Health Plans Inc (NYSE:WCG) in a multibillion-dollar deal. The two insurers focus on such government programs as Medicare and Medicaid. Together the combined companies expect to serve roughly 22 million members. The deal is expected to close in the first half of 2020.
Shares of Centene were looking sickly, falling 5% to $52.12.
WellCare saw its stock spike on the acquisition news. The smaller, Tampa, Florida, insurer brings a quality Medicare platform to the table, the companies said, and will help expand Centene’s Medicaid offerings. The deal comes the same week that the Trump administration attacked the Affordable Care Act in court, saying that the law should be declared unconstitutional. The ACA included the expansion of Medicaid in several states.
Investors liked the deal for WellCare, sending shares up 12% to $259.81.
Lands’ End Inc (NASDAQ:LE) announced its return to Pittsburgh with a standalone store opening April 6. The previous locations in the city left when the Sears stores they operated out of closed, according to Patch. The Dodgeville, Wisconsin-based retailer’s new store will feature activewear, swimwear and accessories.
The share price climbed 2.3% to end the day at $16.26.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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