Tuesday headlines include: earnings misses from Alibaba, Herbalife and Dish Network; Halliburton's CEO saying he expects oil prices to recover soon; and more legal problems for JP Morgan.
Chinese e-commerce giant Alibaba (BABA) said Tuesday that net income attributable to shareholders was $494 million or 45 cents per share in the second quarter. Revenue was $2.74 billion. Analysts had expected the company to earn $1.17 billion on $2.7 billion in revenue. The company said the shortfall in earnings was due to share-based compensation costs and higher-than-expected amortization costs for intangible assets.
Nutritional supplement firm Herbalife (HLF) said Monday that it earned 13 cents per share in the third quarter, or $1.45 per share on an adjusted basis. Revenue was $1.25 billion. Analysts had expected the company to earn $1.51 per share. The company said it took a 97-cent-per-share charge in the quarter on the “remeasurement” of its options in Venezuela. Sales in North America were down 2.2 percent in the quarter.
Satellite-television provider Dish Network (DISH) said Tuesday that it earned 31 cents per share on $3.68 billion in revenue during the third quarter. Analysts had expected the company to earn 41 cents per share on $3.7 billion in revenue. The company reported a net loss of 12,000 pay-TV subscribers in the quarter, compared to a net gain of 35,000 in the year-ago period.
The CEO of oil-services firm Halliburton (HAL) told Bloomberg recently that he believes that oil prices will stay between $80 and $100 a barrel over the long term, adding that the current weakness in crude prices is due to a temporary imbalance in supply and demand. Dave Lesae said he expects that imbalance to correct itself.
Financial giant JP Morgan (JPM) is under investigation for its foreign exchange business. The bank says it is cooperating with the investigation, and is in talks with regulators, but can make no assurances that settlements will be forthcoming. The company also said the high-end of its estimates for losses from legal proceedings above its reserves is now $5.9 billion. It had previously forecast $4.6 billion.