Wall Street Brief: Bed Bath & Beyond Winning, Greece Extends Deadline
For a second time, Greece has pushed back a deadline for private bondholders to accept a debt swap deal. The new deadline for the holdout group is April 20 while authorities continue to determine what to do if these creditors don’t want to participate. For those who are ready, Greece will settle the swap of EUR 20.27 billion bonds (72 percent) on April 11. According to Reuters, the country is unable to fully pay those holding out and that the offer from March is the best one available for the swap deal to bondholders.
Bed Bath & Beyond (NASDAQ:BBBY) offers evidence consumers are still focused on their homes: earnings rose 32% to $1.48 per share versus last year’s earnings of $1.12 a share. BBBY’s earnings jumped 32% year over year to $4.06 per share, beating Wall Street expectations.
DirecTV (NASDAQ:DTV) has come to a five-year agreement to restart the offering of Tribune (TRBCQ.PK) TV stations including local ones and WGN America. The terms of the deal were not disclosed by the parties. Derek Chang, executive vice president of Content, Strategy and Development, DIRECTV said in a press release, “It’s unfortunate that Tribune was willing to hold our customers hostage in an attempt to extract excessive rates, but in the end we reached a fair deal at market rates similar to what we originally agreed to on March 29.”
On Wednesday, hedge fund manager Philip Falcone said he is “seriously considering” filing voluntary bankruptcy for the start-up company LightSquared; his hedge fund is its majority owner. By pursuing bankruptcy, which is just one option, it would enable the company to buy time and resolve the issues related to communications interference that has been affecting the building out of a national wireless broadband network, reported Reuters.
March unemployment figures come out on Friday while most markets will be closed for Good Friday. Economists have forecast non-farm payrolls increased by 205,000 after rising by 77,000 in February. The jobless rate is estimated to stay the same at 8.3 percent.
6 Early Buzzers: Aloca Cuts Capacity, Macy’s Beats Same-Store Sales and Carmike Bombs 10%
Shares of Alcoa Inc. (NYSE:AA) edged .40 percent lower before the opening bell. The alumina giant announced it will reduce its annual alumina production capacity by 390,000 metric tons, in order to avoid oversupply in the Atlantic region.
ConocoPhillips (NYSE:COP) shares decreased slightly, despite saying it expects to beat its first-quarter production target of 1.55 million barrels of oil a day. Production is estimated to come in at 1.62 million barrels.
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Macy’s Inc. (NYSE:M) shares gained .48 percent in early trading. The clothing retailer reported a 7.3 percent increase in same-store sales, beating the consensus of 4.8 percent. Kohl’s Corp. (NYSE:KSS) also beat the consensus, but shares fell 2.19 percent.
Shares of Great Wolf Resorts Inc. (NASDAQ:WOLF) surged more than 11 percent early Thursday. The company said it received a $6.25 per share buyout offer from KSL Capital Partners, beating an earlier $5 per share offer from Apollo Global Management.
Carmike Cinemas Inc. (NASDAQ:CKEC) shares dropped 10 percent in pre-market trading. The movie theater company announced a secondary offering of 4 million shares at $13 per share.
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Polycom, GPRC, CREG, CarMax, BBBY Hot Wall Street Stock April 5th
Polycom Inc (NASDAQ:PLCM): Teleconferencing products maker Polycom (NASDAQ:PLCM) is dropping sharply after the company earlier this morning preannounced Q1 adjusted EPS guidance of 21c-23c, versus analysts’ consensus estimate of 30c. The company’s Q1 revenue guidance was also lower than expected. “We estimate that we grew quarterly revenues approximately 7% year-over-year, with each region recording increases. However, the growth rate was below our overall expectations, driven primarily by shortfalls in Asia Pacific and North America,” said Polycom CEO Andrew Miller. Polycom said that its Q1 revenue had grown 1%-3% year-over-year in North America and 5%-8% in the Asia Pacific region. Revenue from the company’s unified communication group systems products increased 4%-6%, while revenue from unified communication personal products rose 7%-9%, the company added. In a note to investors this morning, UBS defended Polycom, saying that the company’s stock is on sale at current levels. The firm believes that demand for the company’s products is bottoming, and sees the company as a potential takeover target. UBS maintained a Buy rating on Polycom, which sank $3.49, or 19.19%, to $14.70 in early trading. Cisco (NASDAQ:CSCO), which also sells teleconferencing products, was also trading lower. Shares of Polycom Inc are trading 17.54% lower today.
Guanwei Recycling Corp. (NASDAQ:GPRC): Guanwei Recycling reported 2011 EPS 64c vs. 50c in 2010.
Reported 2011 revenue $63.60M, one estimate $62.50M. Shares of Guanwei Recycling Corp. are trading 37% higher today.
China Recycling Energy Corp. (NASDAQ:CREG): China Recycling Energy halted for volatility after rallying 109% to $3.08. Shares of China Recycling Energy Corp. are trading 101.5% higher today.
CarMax, Inc (NYSE:KMX): Earlier, CarMax said that it revised its previously issued consolidated financial statements to correct its accounting for sale-leasebacks entered into between 1995-2009. As a result of the revision, the company recorded certain properties subject to the sale-leasebacks as assets and the related sale proceeds as financing liabilities. The company determined that its financial statements were not materially affected by the revision. As a result of the correction, reported net earnings per diluted share were reduced by 2c in both FY12 and FY11. On the Q4 earnings conference call, the company said total earnings growth is unaffected by the restatements. Shares of CarMax, Inc are trading 2.09% lower today.
Bed Bath & Beyond Inc. (NASDAQ:BBBY): Bed Bath & Beyond sees Q1 and FY12 SSS up 2-4%. Shares of Bed Bath & Beyond Inc. are trading 7.43% higher today.
5 Late Stocks Hitting Radars: WD-40 Jumps 3%, P&G Aims to Protect Its Smile
Shares of WD-40 Co. (NASDAQ:WDFC) jumped more than 3 percent higher in late market trading. The company announced fiscal second quarter net earnings of $10.6 million (65 cents per share), compared to $9.1 million (53 cents per share) a year earlier.
After closing 1.3 percent lower during regular trading, shares of Pandora Media Inc. (NYSE:P) edged another .20 percent in extended trading. On Thursday, Barclays (NYSE:BCS) Equity Research analyst, Anthony DiClemente, initiated coverage on the music company with an Underweight rating. He also does not expect Pandora to be profitable until 2016.
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Procter & Gamble Co. (NYSE:PG) shares climbed slightly higher after the closing bell. The company filed an infringement lawsuit against Be Well in regards to its tooth whitening products. P&G seeks to protect its Crest Whitestrips business.
Motorola Mobility Holdings Inc. (NYSE:MMI) shares edged lower in late trading. Google Inc. (NASDAQ:GOOG) CEO Larry Page said he expects “to build great devices” with Motorola, which it plans on acquiring. Page also explained that the Android ecosystem will remain open to other device makers.
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