Diamonds and Dogs

2/9/16

In a volatile day, Martin Marietta Materials (MLM) is jumping over 10% after making a new 52 week low this morning following disappointing earnings, but better than expected guidance.  The seller of granite, limestone, sand and gravel posted revenue of $780.8 million in the fourth quarter missing estimates. However in the conference call, management made comments that the outlook for 2016 reflects growing underlying demand and strong pricing across their entire geographic footprint. With the stock down 25% in the last year, Wall Street is looking for any company not lowering guidance to get behind.

Viacom (VIAB) continues its downward slide following a fifth straight quarterly earnings miss. The entertainment owner of Nickelodeon and Paramount saw revenue fall 6% year over year to $3.15 billion. Adjusted earnings fell 9% to $1.18 per diluted share. Earnings, cash flows, and sales are all down over the last five years as the stock has slid 50% in the last year. The company announced an expanded partnership with social media maven Snapchat today, but it's going to take a lot more than that to get the stock and the fundamentals to turn around.