Diamonds and Dogs
Who knows Jack? Jack in the Box (JACK) is up 10% after beating earnings estimates by 20 cents while also raising 2016 guidance. The company reported better same-store sales closing the gap as compared to the industry while also looking to reduce costs to improve profit margins. Going forward, Jack in the Box is opening approximately 20 new restaurants and 50 to 60 new Qdoba restaurants. Maybe we'll see one in our neighborhood soon.
Not a good time for the insurers. MetLife (MET) is down 10% not far from its 52 week low after missing earnings estimates by a wide margin. Low interest rates and annuities are the main culprit. The company took a $3.7 billion in additional reserves, which worked out to $2 billion after taxes to cover the massive hole in their annuity guarantees. With interest rates not going anywhere soon it looks like the insurers may be in for some tough times ahead.
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