Kansas City Southern, Altria, IBM & more

Kansas City Southern (KSC) railroad locomotives idle on a tank bag before pulling freight trains from Knoche Yard in Kansas City, Missouri.

Luke Sharrett | Bloomberg | Getty Images

Check out the companies that are making headlines in mid-day trading.

Johnson & Johnson – The pharmaceutical giant’s shares rose 2.5% after the company reported earnings and sales that exceeded Wall Street expectations. The company had adjusted earnings per share of $ 2.59 versus $ 2.34, according to Refinitiv. JNJ reported $ 100 million in sales for its Covid-19 vaccine in the first quarter, which is on hold in the US while federal health officials investigate a rare blood clotting problem.

IBM – IBM stocks rose more than 4% to hit a new 52-week high after beating first-quarter revenue and earnings estimates. IBM made $ 1.77 per share, blank on sales of $ 17.73 billion. According to estimates by Refinitiv, analysts expected USD 1.63 per share on sales of USD 17.35 billion. The strength in cloud computing helped drive quarterly revenue growth to its best in over two years.

Kansas City Southern – Railroad stocks rose 16% in midday trading after Canadian National Railway offered to buy Kansas City Southern for $ 325 per share in cash and stock. This offer was a higher offer than before $ 275 per share from the Canadian Pacific.

United Airlines – United shares fell about 9% after the company announced a loss of $ 7.50 per share in the first quarter, up from what analysts had expected was a loss of $ 7.08. The airline’s sales were also slightly weaker than analysts expected due to higher fuel costs and lower demand due to the Covid-19 pandemic. The stock is down 13% over the month.

Altria – Tobacco inventories fell about 5%, according to a report in the Wall Street Journal that US regulators plan to limit the amount of nicotine in cigarettes. British-American Tobacco, which trades in London, fell more than 4%. Philip Morris stocks bucked the trend but rose 2.8%.

AutoNation – The car dealer’s shares fell more than 3% in midday trading on a wider market sell-off. The downturn came even though the company made an adjusted $ 2.79 per share for the last quarter, well above the consensus estimate of $ 1.87. The sales figures also exceeded estimates. Sales in the same store increased by 27% compared to the previous year.

– CNBC’s Jesse Pound, Pippa Stevens and Yun Li contributed to the coverage.

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