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Verizon, InterMune: Market Movers

Tickers in this article: WTSLA PEET FB ITMN HAL DECK MCD KBH ARO

NEW YORK ( TheStreet) -- These stocks are making headlines during Monday's regular session.

Facebook(FB) :

The sell side was weighing on Facebook's upcoming results on Monday. The social networking company is slated to report its second-quarter numbers after Thursday's closing bell. The average estimate of analysts polled by Thomson Reuters is for Facebook to report a profit of 12 cents a share in its first quarterly report as a public company on revenue of $$1.15 billion.

Oppenheimer is expecting the results to show some evidence of a slowdown as users shift to mobile usage from the desktop but it still anticipates an in-line performance.

"We expect US advertising will slow to 7% y/y growth from 27% in 1Q, with Int'l slowing to 32% growth from 48%, based on our analysis of desktop usage," said the firm, which has an outperform rating on the stock and a $41 price target. "The wild card is mobile, as we are not assuming the company is seeing ad revenues from new formats. However, we believe investor sentiment remains negative on the shares, with the stock reacting negatively to a recent comScore data release. For 2012, we estimate revenues in line with underwriters' and 1% below consensus."

Facebook shares were down less than 1% at $28.51.

InterMune(ITMN) :

InterMune fell sharply after the biotech reported weak sales of its lung disease therapy Esbriet.

The Brisbane, Calif.-based company posted a loss from continuing operations of $50.9 million, or 78 cents a share, on revenue of $5.5 million, much wider than the average estimate of analysts polled by Thomson Reuters for a loss of 23 cents a share on revenue of $39.9 million.

The stock dropped 14.3% to $10.04 in afternoon action.


Goldman Sachs was out with a big positive call on the homebuilders early Monday, boosting its view of the sector to attractive from neutral as pricing starts to strengthen. As for individual stocks, the firm added MDC Holdings (MDC) to its conviction buy list; upgraded KB Homes (KBH) to buy from neutral; upgraded Ryland Group (RYL) to neutral; and downgraded NVR(NVR) to sell.

"We acknowledge the ytd price performance, but see this as the beginning of a longer positive trend in housing-related equities," Goldman said. "Rising US home prices are atop 'Housing's Long List of Positives' that we expect will propel a 20-30% CAGR compound annual growth rate in US housing starts over the next four years. Our 1mn forecast for 2013 housing starts is above the 875,000, we estimate the market is currently pricing in. We think investors should take advantage of the likely volatility in the space given US Homebuilders' strong correlation with the still depressed levels of new home sales."