By Wallace Witkowski, MarketWatch
SAN FRANCISCO (MarketWatch) -- Yum Brands Inc. shares dropped in the extended session Tuesday after the KFC and Taco Bell operator cuts its outlook for the year on soft China sales.
Yum (YUM) shares fell 7.8% to $66.10 in heavy volume after the company reported adjusted third-quarter earnings of 85 cents a share on revenue of $3.47 billion. Without a higher-than-expected tax rate from a tax reserve adjustment, Yum said it would have reported earnings of 95 cents a share. Analysts surveyed by FactSet estimated consensus earnings of 93 cents on revenue of $3.54 billion.
Yum also said it is unlikely same-store sales in China will be positive in the fourth quarter and now sees a high single-digit to low double-digit decline in earnings per share for the quarter, compared with a previous outlook of a low single-digit decline.
Alcoa Inc. (AA) shares rose 2% to $8.10 in heavy volume after the aluminum producer in its quarterly results. Alcoa reported adjusted third-quarter earnings of 11 cents a share on revenue of $5.77 billion. Analysts surveyed by FactSet expected consensus earnings of 5 cents on revenue of $5.64 billion.
Shares of Callidus Software Inc. (CALD) jumped nearly 13% to $9.70 on moderate volume after the sales and marketing software producer raised its revenue estimates for the third quarter.
Mistras Group Inc. (MG) shares rose 12% to $19.30 after the company's fiscal first-quarter earnings topped consensus estimates.
Cytrx Corp. (CYTR) shares fell 6.2% to $2.57 in moderate volume after the biotech said it was launching a secondary offering of its stock.
Shares of Lpath Inc. (LPTN) fell 9.8% to $4.40 in moderate volume after the biotech said that Pfizer Inc. may divest its exclusive option to co-develop an eye treatment with the company.
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
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(END) Dow Jones Newswires
10-08-13 1810ETCopyright (c) 2013 Dow Jones & Company, Inc.
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