Wednesday headlines include an earnings beat from Deere, Amazon launching its own credit-card reader, King Digital reporting soft revenue, but declaring a big dividend, Target hoping supply chain fixes will help its Canadian operations and Boeing and Sikorsky building a helicopter prototype for the Army.
Deere & Co.
Agricultural equipment maker Deere & Co. (DE) said Wednesday that it earned $2.33 per share in the third quarter, on $9.5 billion in sales. Analysts had expected the company to earn $2.22 per share on $8.75 billion in sales. The company also lowered its full-year net income forecast for fiscal 2014 to $3.1 billion, from a prior forecast for $3.3 billion.
Apparently not satisfied with just taking business from brick-and-mortar retailers, online giant Amazon (AMZN) is now offering a credit-card reader and mobile app that will give the company data about how customers shop in the real world. The new system costs $10, and will compete with companies like Square and eBay unit PayPal.
The company behind “Candy Crush,” King Digital (KING) said Tuesday that it earned 52 cents per share in the second quarter, or 59 cents per share on an adjusted basis. Revenue was $593.6 million. Analysts had expected adjusted earnings of 59 cents per share on $609 million in revenue. For the full year, the company said it expects gross bookings of $2.25 billion to $2.35 billion, compared to a prior forecast for $2.55 billion to $2.65 billion. The company also declared a special dividend of $150 million, or 46.9 cents per share payable to shareholders of record as of Sept. 30.
Retailer Target (TGT) is fixing problems with its supply chain that it blames for its struggling expansion into Canada. The company lost close to $1 billion after it opened 124 stores and three distribution centers in the country in 2013. Sales north of the border were much lower than anticipated.
A team consisting of Boeing (BA) and Sikorsky Aircraft has been chosen to build a prototype of anew vertical-lift aircraft that could be chosen by the Army to replace thousands of helicopters. Textron (TXT) unit Bell Helicopter, will also be building a prototype in hopes of ultimately winning a contract that could be worth more than $100 billion.