Vera Bradley’s stock falls after profit misses expectations, while revenue beats

Shares of Vera Bradley Inc. VRA, +0.09% slumped 5.7% in premarket trading Wednesday, after the handbags and luggage seller reported a fiscal second-quarter profit that missed expectations, although revenue rose more than forecast. Net income for the quarter to Aug. 3 fell to $5.9 million, or 17 cents a share, from $9.3 million, or 26 cents a share, in the same period a year ago. Excluding non-recurring items, such as a charges related to the Pura Vida acquisitions, adjusted earnings per share came to 25 cents, below the FactSet consensus of 27 cents. Revenue rose to $119.8 million from $113.6 million, above the FactSet consensus of $117.3 million, while same-store sales growth of 2.1% matched expectations. Excluding Pura Vida results, revenue growth of 0.7% to $114.4 million was slightly below guidance of $115 million to $120 million. The company said it reduced clearance sales by about $3 million during the quarter, as planned. For the third quarter, the company said it expects revenue of $122 million to $129 million including Pura Vida revenue of $23 million to $25 million, compared with the FactSet consensus of $101.2 million. The stock has rallied 23.7% year to date through Tuesday, while the SPDR S&P Retail ETF XRT, -1.53% has slipped 4.5% and the S&P 500 SPX, -0.69% has gained 15.9%.

Endo: Novitium Pharma Gets FDA Approval For Generic Equivalent Of Orfadin

Endo International plc (ENDP) said Novitium Pharma, a partner of Endo’s subsidiary, has received approval from the FDA for a generic equivalent of Swedish Orphan Biovitrum’s Orfadin. The Nitisinone capsules are used to treat patients with hereditary tyrosinemia type 1 in combination with dietary restriction of tyrosine and phenylalanine.

Endo’s operating company, Par Pharmaceutical Inc., plans to sell the product through specialty pharmacies beginning September.

Shares of Endo International plc were up more than 4 percent in pre-market trade on Wednesday.

B. Riley shares soar more than 7% premarket after company raises net income guidance

B. Riley Financial Inc. shares RILY, -0.71% soared more than 7% in premarket trade Wednesday, after the financial services company raised its net income guidance for 2019 to a range of $45 million to $60 million from a prior range of $39 million to $45 million. The moves comes "as a result of continued steady results across its various subsidiaries with better than anticipated performance in its more episodic asset disposition and capital markets businesses." The company posted net income of $30.2 million for the first half on revenue of $306.8 million. Shares have gained 48% in 2019, while the S&P 500 SPX, -0.69% has gained 16%.

Apple files prospectus to offer more debt, with maturities of 3 years to 30 years

Apple Inc. AAPL, -1.46% has filed Wednesday a prospectus for the issuance of debt, with maturities ranging from 2022 to 2049. The stock jumped 1.3% in premarket trading, after shedding 1.5% on Tuesday. The technology giant did not yet provide the amounts of debt to be issued. Apple said it plans to use the proceeds from a debt offering for general corporate purposes, which includes stock repurchases and dividend payments, and funding for working capital, capital expenditures, acquisitions and repayment of debt. As of June 29, Apple had total term debt of $98.32 billion, with maturities ranging from 2020 to 2047. Under Wednesday’s filing, the maturities for the debt offering are expected to be 2022, 2024, 2026, 2029 and 2049. The underwriters are Goldman Sachs, BofA Securities and Deutsche Bank Securities. Apple’s stock has run up 14.5% over the past three months, while the Dow Jones Industrial Average DJIA, -1.08% has gained 3.1%.

Gold Prices Ease As Risk Appetite Improves

Gold prices fell slightly on Wednesday even as the U.S. dollar extended its fall on the back of weak manufacturing data, uncertainties over the Brexit outcome and the prolonged Sino-U.S. trade spat.

Spot gold declined 0.65 percent to $1,537.82 per ounce, after hitting its highest level since April 2013 at $1,554.56 last week. U.S. gold futures were down 0.6 percent at $1,546.45 an ounce.

There is some improvement in risk appetite as investors cheered positive political developments in Italy, Britain and Hong Kong.

Italian bonds climbed for a third day after Prime Minister-designate Giuseppe Conte won backing to form a new government.

British lawmakers will now move to pass a bill that will make a no-deal Brexit illegal after British Prime Minister Boris Johnson suffered a humiliating defeat over his Brexit strategy.

Elsewhere, Hong Kong leader Carrie Lam is set to announce the formal withdrawal of a controversial extradition bill that triggered months of unrest.

On the economic front, the euro zone business growth improved slightly since July, while the region’s retail sales declined at the fastest pace seen so far this year in July, separate reports showed.

Data released earlier in the day showed that activity in China’s services sector expanded at the fastest pace in three months in August.

The focus now shifts to a European Central Bank meeting next week, with investors expecting a stimulus package including a rate cut.

U.S. Construction Spending Inches Less Than Expected In July

A report released by the Commerce Department on Tuesday showed a slight uptick in U.S. construction spending in the month of July following a smaller than previously estimated slump in June.

The Commerce Department said construction spending inched up by 0.1 percent to an annual rate of $1.289 trillion in July after sliding by 0.7 percent to a revised June rate of $1.288 trillion.

Economists had expected construction spending to rise by 0.3 percent compared to the 1.3 percent nosedive originally reported for the previous month.

The uptick in construction spending came as an increase in spending on public construction was partly offset by a dip in spending on private construction.

The report said spending on public construction climbed by 0.4 percent to an annual rate of $325.7 billion, as spending on education construction surged up by 1.6 percent.

On the other hand, spending on private construction edged down by 0.1 percent to a rate of $963.1 billion, with a 0.6 percent increase in spending on residential construction more than offset by a 0.8 percent drop in spending on non-residential construction.

Compared to the same month a year ago, construction spending in July was down by 2.7 percent, as a 4.8 percent slump in spending on private construction more than offset a 4.0 percent jump in spending on public construction.