Avis Budget, J.M. Smucker, Ancestry.com, Ion, Real Page Among Stock Percentage Decliners Feb 16th
Avis Budget Group Inc. (NASDAQ:CAR): Avis Budget reported Q4 EPS of (14c), compared with analysts’ consensus estimate of 6c. The company’s revenue came in slightly lower than expected. Avis provided Q1 adjusted EBITDA guidance, excluding items, of $55M-$65M. However, the company did warn that lack of visibility into Avis Europe’s seasonality, the effects of the Japanese earthquake and the difficult pricing environment in the first six weeks of the year has made it unusually difficult for it to predict its Q1 outlook. “Our integration of Avis Europe is progressing as planned, and we are confident that we will realize substantial benefits in 2012 from integration-related synergies and from the strategic initiatives that accelerated our organic growth in 2011,” added Avis CEO Ronald Nelson. In mid-morning trading, Avis sank $2.21, or 15.15%, to $12.36. Other auto rental companies also declined, with Dollar Thrifty (NYSE:DTG) losing 1.782% to $73.50 and Hertz (NYSE:HTZ) sinking 4.86% to $13.91. The shares closed at $12.58, down $2.01, or 13.78%. They have traded in a 52-week range of $8.45 to $19.49.
The J.M. Smucker Company (NYSE:SJM): Food manufacturer J.M. Smucker (NYSE:SJM) reported Q3 adjusted EPS of $1.22, versus analysts’ consensus estimate of $1.41. The company’s revenue also came in lower than expected. “Although we expected volume to decline during the quarter, the magnitude of the decline was unexpected..and sell-through was disappointing,” explained Smucker CEO Richard Smucker. “Consumer take-away declined sharply in a number of our categories during the fall bake and holiday season,” said Smucker, adding that he expects over $500M of cost increases for the company’s full fiscal year. Smucker has been covering these cost increases primarily with price hikes, the CEO added. The price increases have reduced sales volumes, the company said. On a positive note, Smucker said that the results don’t reflect fundamental changes that will affect the company’s business model. “We want to emphasize that we are confident in our long-term strategy and expect the consumer to adapt to adjusted market prices over the coming quarters,” added Smucker. Moreover, the company’s market share is still strong and commodity costs are moderating, added Smucker COO Vince Byrd. In mid-morning trading, Smucker sank $6.31, or 8.07%, to $71.84. The shares closed at $71.60, down $6.55, or 8.38%. They have traded in a 52-week range of $64.75 to $81.40.
Ancestry.com Inc (NASDAQ:ACOM): Citigroup recommends using the weakness in Ancestry.com shares post the company’s Q4 results as a buying opportunity. The firm lowered its price target for shares to $34 from $36 but keeps a Buy rating on the stock. The shares closed at $23.83, down $4.69, or 16.44%. They have traded in a 52-week range of $20.67 to $45.79.
Ion Geophysical Corp (NYSE:IO): CFO Greg Heinlein commented: “Our Q4 results were strong, as expected, and we anticipate the positive momentum experienced in the quarter to continue as we head into 2012. Our marine business delivered a strong Q4 performance, supported by the streamer sale to BGP. Our multi-client business is currently executing several new venture programs on land and offshore, which positions us well for a strong 2012. In addition, our Solutions backlog is at record levels, and we expect revenue growth rates to return to historically high levels. As mentioned on our market and business outlook call in December, we expect our investment in multi-client data libraries during 2012 to be in the range of $130M-$150M, with a significant amount of this investment to be underwritten by our customers and with new venture projects spread more evenly throughout the year due to continued expansion on land. While we expect 2012 earnings to be back-end loaded, we continue to anticipate approximately one-fourth of annual results to be reflected in the first half of the year due to the growing impact of our GeoVentures business and the distribution of multi-client projects throughout the year.” The shares closed at $7.13, down $0.86, or 10.76%. They have traded in a 52-week range of $4.20 to $13.92.
RealPage, Inc. (NASDAQ:RP): Reported Q4 revenue $71.33M vs. consensus $73.99M. The shares closed at $24.19, down $2.44, or 9.16%. They have traded in a 52-week range of $18.17 to $32.83.
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