Hot Stocks: ALKS rallied on earnings; NCR, COF decline; ARCH sets new high

Following a massive decline during the previous day, Wall Street attempted to stabilize on Wednesday, ending a choppy session with a mixed performance. The Dow and S&P 500 posted modest gains, while the Nasdaq ended fractionally lower.

Even amid the uncertain action, earnings news contributed to some standout performances among individual stocks. This included Alkermes (ALKS), which posted a double-digit percentage gain in the wake of its quarterly report. Meanwhile, Arch Resources (ARCH) extended Tuesday’s earnings-inspired rally to set a fresh 52-week high.

On the other side of the spectrum, NCR (NYSE:NCR) and Capital One (COF) both dropped following the release of their financial figures.

standout gainer

Alkermes (ALKS) received a boost from the release of strong quarterly results, with the stock surging 12% on the day.

Boosted by robust sales of its Aristada and Vivitrol products, the biopharmaceutical firm exceeded estimates with its Q1 profit. The better-than-projected bottom line came as revenue jumped 11% to reach $278.5M.

Growth during the quarter included a 32% advance in net sales of proprietary products.

ALKS finished the session at $30.38, an advance of $3.24 on the day. With the rally, the stock jumped above recent resistance to resume gains posted during March and early April.

Shares reached their highest close since early November.

Standout Loser

The release of disappointing quarterly results inspired a wave of selling in shares of NCR (NCR). The stock finished lower by 23%.

The provider of software to the financial, retail and hospitality industries reported a quarterly profit that came in well below the amount analysts had predicted. The firm blamed macro headwinds, such as high inflation and the war in Ukraine.

NCR also cut its forecast for the year. The firm targeted revenue of about $8B for the year, below the $8.11B that analysts had predicted. The company also cut its projections for adjusted EBITDA and non-GAAP EPS.

Weighed down by the financial figures, NCR plummeted $8.68 to close at $28.67. The decline took the stock below recent support, with shares reaching an intraday 52-week low of $28.

Notable New High

On Tuesday, Arch Resources (ARCH) skyrocketed on strong earnings and an increased dividend. The gains continued during Wednesday’s session, allowing the stock to set a fresh 52-week high.

The coal miner reported Q1 EBITDA of $321M, topping analysts’ consensus of $308M. Looking ahead, the company also predicted “a significant increase” in its Q2 results, a result of higher coking coal volumes and “the highly favorable pricing environment.”

Based on the results, ARCH jumped nearly 21% on Tuesday, recovering most from the losses hardened in the lead up to its earnings report. The buying interest continued during Wednesday’s action, with the stock climbing another nearly 8%.

The stock finished at $171.12, a gain of $12.29 on the session. Shares also established a fresh intraday 52-week high of $176.35.

Notable New Low

Capital One (COF) lost ground following the release of its quarterly results. Despite better-than-expected headline results, concerns over higher marketing spending contributed to a 6% slide on the day. With the decline, COF reached a new 52-week low.

The credit card company exceeded projections with both its top and bottom lines, with revenue that rose 15% to $8.2B.

However, worries about higher costs undercut the headline numbers. The firm reported marketing costs of $918M for its latest quarter, up 83% from last year.

Hurt by the results, COF plunged to an intraday 52-week low of $119.88 early in Wednesday’s session. The stock cut its losses later in the day but still finished at $124.35, a decline of $8.02 on the day.

For more of the day’s best- and worst-performing stocks, click over to Seeking Alpha’s On The Move section.

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