Dell’s SLUMP Continues and These 2 Stocks Fall to 52-Week Lows
Big Lots (NYSE:BIG) has fallen more than 21 percent this morning after it revealed its Q2 EPS of 36c compared to 50c last year. The retailer stated that Q2 revenue was $1.22 billion compared to $1.18 billion the previous year. Analysts predicted an EPS of 41c on a revenue totaling $1.24 billion. Net sales for U.S. operations increased 1.7 percent from the previous year to $1.18 billion, and Canadian sales totaled $35 million.
Because of these results, Big Lots lowered its FY12 EPS view to $2.80-$2.95 from $3.25-$3.40, consensus $3.29. The company also lowered its EPS from U.S. operations view to $3.05-$3.15 from $3.50-$3.60. The guidance assumes a U.S. same-store sales decline in the low-single digit range and a total U.S. sales increase of 3 percent to 4 percent.
On the Q2 earnings conference call, Big Lots forecast for Q3 EPS was 30c to 20c, consensus 14c, and Q4 EPS was $1.97-$2.12 in comparison to $1.75 a year ago. The company also forecast that Q3 U.S. SSS would be down in the mid-single digits, and Q4 SSS would be down in the low-single digits.
The company stated that margins would be “challenged” during Q3 and Q4. Also, the retailer forecast FY12 adjusted the gross margin below FY11, with a FY12 net interest expense of about $4 million and effective tax rate of 38 percent to 39 percent. The company claimed that it is “cautious” regarding the end of October and the beginning of November, and it said that it believes certain discretionary businesses may still be challenged and continue to pressure margins near-term.
Also, the company promoted Lisa M. Bachmann as COO on top of her role as CIO and Timothy A. Johnson as CFO. Charles W. Haubiel II was promoted to CAO and John C. Martin was promoted to Chief Merchandising Officer. Big Lots is trading down $8.19, or 21.09%, to $30.65 in late morning trading. The shares closed at $30.76, down $8.08 or 20.8% on the day. They have traded in a 52-week range of $30.79 to $47.22.
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Dell Inc. (NASDAQ:DELL) stock has fallen 25 percent since November, when Barron’s noted its market-share challenges and a long road in front of it for its turnaround. Dell shares could continue to fall. This is due to the fact that the long-term shift away from PCs will not make a big difference this fall, when Windows 8 software will be unveiled. Also, applications on notebook devices could be a significant threat to PC sales. Barron’s claims that even if Dell has a few things working in its favor, these are not enough to justify an investment. The shares closed at $11.24, down $0.44 or 3.77% on the day. They have traded in a 52-week range of $11.39 to $18.36.
O2Micro Internationa (NASDAQ:OIIM) announced that it was issued 20 claims beneath United States patent number 8,222,869 for its Battery Pre-Charging System and Method. O2Micro’s patented system allows high efficiency charging when the battery voltage is below normal charging voltage. Furthermore, the patent diminishes the necessity for extra components. The shares closed at $3.55, down $0.02 or 0.56% on the day. They have traded in a 52-week range of $3.51 to $5.85.
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