Air travelers wait in the car pool area near a sign for Uber at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Check out the companies that are making headlines in midday trading.
Ambarella – The semiconductor company’s shares rose 27% after Ambarella exceeded expectations for second quarter sales and earnings. The company reported adjusted earnings per share of 35 cents on sales of $ 79.3 million. Analysts surveyed by Refinitiv expected $ 75.7 million. Ambarella’s third-quarter revenue guidance also beat expectations, and the company expected a rebound in the second half of the year after the Texas freeze hit its supply chain earlier this year.
PVH Corp – The clothing company’s stock rose more than 15% on outstanding earnings. The owner of Calvin Klein reported earnings of $ 2.72 per share, well above what Wall Street expects to see $ 1.20 per share. PVH had sales of $ 2.31 billion, beating expectations of $ 2.14 billion. The company’s digital revenue increased 35% year over year.
Sunrun – The solar company’s stocks rose more than 6% after JPMorgan confirmed its overweight position and added the stock to its analyst focus list. The company cited Sunrun’s strong inventory position, which should allow it to handle bottlenecks that could hit the industry. JPMorgan’s 12-month target price of $ 86 for Sunrun suggests a rally of over 90%.
Kansas City Southern – The rail freight holding company climbed 3.8% after Citi upgraded its stock to buy from neutral. The company is in the midst of a bidding war between the Canadian National Railway and the Canadian Pacific Railway. This week, a US regulator turned down a proposed voting fund for the deal. An activist investor in Kansas City Southern has also tried to stop the deal. The shares of the Canadian National Railway rose 3.7% and the Canadian Pacific Railway rose nearly 5%.
Wells Fargo – Shares fell more than 4.9% as the fake account scandal from five years ago continues to plague the company. The stocks extended their losses from Tuesday as banking regulators warned of possible new sanctions against the bank. The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau said they were dissatisfied with the pace of the bank’s efforts to compensate victims of the scandal. OCC auditors are expected to testify against former Wells executives later this month.
Uber – The ridesharing company saw shares jump 3.7% after KeyBanc reiterated it as overweight and said the company has a great opportunity to gain market share in the grocery delivery space. Uber also said Tuesday that it is selling stakes in several Russian companies for $ 1 billion.
Apple – Apple stocks rose before falling to less than 1% after the company announced the launch of a feature that would allow users to add driver’s licenses and government IDs to their Apple wallet. Arizona and Georgia will be the first states to take over the feature. Connecticut, Iowa, Kentucky, Maryland, Oklahoma, and Utah will follow. Apple has not given a timeline.
Campbell Soup – The grocer’s shares rose more than 2% after beating second-quarter sales and earnings estimates. It also issued an adjusted earnings outlook for fiscal 2022 of $ 2.75 to $ 2.85 per share, compared to a consensus estimate of $ 2.87 indicating higher input costs and a constrained labor market.
– CNBC’s Maggie Fitzgerald, Jesse Pound and Yun Li contributed to the coverage
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