Stock Market Today: BlackBerry's Sales Drop and Rite Aid's Soaring Costs
The stock market could make yet another run into record territory today. The Dow Jones Industrial Average has gained eight points in pre-market trading, but it is sitting just 34 points away from a new high. Global markets set a positive tone in overnight sessions, with Europe's Stoxx index leading the bunch by gaining 1.1% as of 8:30 a.m EDT.
Meanwhile, BlackBerry and Rite Aid stocks are on the move today after delivering their quarterly numbers.
BlackBerry this morning posted a 69% drop in revenue for its fiscal first quarter, along with a surprising rebound in profitability. The mobile giant' hit $966 million in sales, which was right in line with Wall Street's targets. However, BlackBerry beat profit expectations by booking $0.04 in per-share earnings after delivering 2.6 million smartphones to customers. The company also boosted profitability by a full 5 percentage points, to 48% of sales, after slashing expenses. CEO John Chen said in a statement that the quarterly performance "demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio." Chief among those financial objectives is a return to positive cash flow, which looks likely this year. The stock was up nearly 13% in pre-market trading.
Rite Aid today blamed rising costs for a huge quarterly profit drop in which net income fell by over 50% to $0.04 a share from last year's $0.09 haul. CEO John Standley said in a statement that the results were hurt by "higher-than-expected drug costs and reimbursement rate pressure." Still, the company posted a solid 3.1% increase in same-store sales as its pharmacy business grew by almost 5%. That improvement helped total revenue climb to $6.5 billion, or 3% above the prior-year period. Rite Aid also confirmed its full-year guidance for revenue of $26 billion and earnings of roughly $0.35 a share. The stock was up 0.8% in pre-market trading.
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The article Stock Market Today: BlackBerry's Sales Drop and Rite Aid's Soaring Costs originally appeared on Fool.com.Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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