Fossil, Rackspace, FreightCar, Generac, MAKO Attract High Trading Demand May 8th
Fossil, Inc. (NASDAQ:FOSL): Fossil’s stock is plunging, after the designer of upscale fashion accessories reported Q1 revenue that came in below both its previous guidance and analysts’ consensus estimate. Fossil blamed the macro economy in Europe – which weakened at the end of Q1, according to the company – and changes in its merchandising and assortment strategies for the shortfall. Meanwhile, Fossil, which said that it remains cautious about the European economy and its impact on the company’s results, reduced its 2012 EPS guidance to $5.20-$5.40, versus analysts’ consensus estimate of $5.56. On a positive note, the retailer reported that its Q1 same-store sales jumped 7.7%, and the company, citing strong watch sales and a positive outlook in the Asia Pacific region, now expects its 2012 net sales to increase about 16%, up from its previous outlook for an increase of about 15%. In early trading, Fossil tumbled $36.56, or 29%, to $89.21. Other high end fashion companies also fell, with Coach (NYSE:COH), Ralph Lauren (NYSE:RL), and Michael Kors (NYSE:KORS) all sinking at least 3%. Shares of Fossil, Inc. are trading 34.8% lower today.
Rackspace Hosting, Inc. (NYSE:RAX): After Rackspace reported in-line Q1 revenue, Stifel Nicolaus still believes that the company’s revenue growth is solid, while most of the company’s metrics are positive. The firm doesn’t believe that the company’s EBITDA miss reflects a change in its profitability outlook, and Stifel reiterates a Buy rating on the shares. Shares of Rackspace Hosting, Inc. are trading 13.41% lower today.
FreightCar America, Inc. (NASDAQ:RAIL): Reported Q1 revenue $219.1M versus consensus $170.61M. EPS may not be comparable to consensus estimates. The Company delivered 2,613 railcars to customers in the first quarter of 2012, of which 2,146 were new cars, 80 were used cars and 387 were leased cars. Total manufacturing backlog was 6,934 units at March 31, 2012 compared to 5,206 units at March 31, 2011 and 8,303 units at December 31, 2011. Shares of FreightCar America, Inc. are trading 6.89% higher today.
Generac Holdings Inc. (NYSE:GNRC): Consensus is $941.24M. Specifically for the second quarter of 2012, net sales are forecasted to increase approximately 35-40% in comparison to the second quarter of 2011, which reflects the expectation of lead times for residential products returning to more normalized levels during the quarter. Consensus is $244.02M. This revised guidance continues to assume no material improvement in the macroeconomic environment and no comparable major outage events during the balance of 2012. Shares of Generac Holdings Inc. are trading 26.26% higher today.
MAKO Surgical Corp. (NASDAQ:MAKO): Mako Surgical overall option implied volatility of 57 is near its 26-week average of 59 according to Track Data, suggesting non-directional price movement into shares tumbling on weaker than expected results and guidance. Shares of MAKO Surgical Corp. are trading 36.14% lower today.
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