Investors Sell These 4 Stocks and Hold Steady With Smucker
Lululemon Athletica inc. (NASDAQ:LULU): The company predicts a Q2 revenue of $273M-278M, consensus $289.78M. This guidance is based on a comparable-store sales percentage, which has risen 25% year over year, increase in the low double digits on a constant-dollar basis. Direct to customer revenue has increased to $38.4M, up 179%. SG&A expenses as a percentage of revenue fell to 29.4% from last years 31%. The company predicts a Q2 EPS of $0.28-$0.30 instead of $0.33 and an FY12 EPS of $1.55 vs. $1.62 consensus. Shares of Lululemon Athletica inc. are trading 8.44% lower today.
A Closer Look: Lululemon Earnings Cheat Sheet>>
Navistar International Corporation (NYSE:NAV): The company’s FQ2 results were a disappointment causing them to restructure management. During the period, profits were reduced by $104M by warranty cost. The results were also affected by the need to use the warranty reserve during the quarter and Navistar chairman, president and CEO Daniel C. Ustian added, “We were also affected by speculation surrounding our engine certification for our Class 8 engine, which is why we are working tirelessly with the U.S. EPA to get resolution.”Although there were lower sales, the cost of sold products rose 9% to $2.94B. The adjusted estimates for FY12 EPS are now $0.00-$2.00. Shares of Navistar International Corporation are trading 14.76% lower today.
The Men’s Wearhouse, Inc. (NYSE:MW): According to Cowen, the sell-off of Men’s Wearhouse after hours as a result of its Q1 earnings miss is an overreaction. After the company decreased guidance, the firm lowered expectations, but states that the story will move to the 2H2012 during which they believe sales trends will improve and comps will be easier. Men’s Wearhouse holds an Outperform rating. Shares of The Men’s Wearhouse, Inc. are trading 18.70% lower today.
Molina Healthcare, Inc. (NYSE:MOH): In a regulatory filing last night, Molina Healthcare revealed that it will expand its Texas health plan, Molina Healthcare of Texas, has expanded into multiple new service areas, which include Hidalgo and El Paso. The company has also began providing to members in other service areas, including pharmacy and inpatient benefits that had been previously provided by the state. In all, this service and benefit expansion has increased Molina of Texas’ premium by neary $900M on an annual basis. Shares of Molina Healthcare, Inc. are trading 30.82% lower today.
The J.M. Smucker Company (NYSE:SJM): The acquisition of Rowland Coffee has added almost $24M to segment net sales, adding 5% of the segment net sales increase. Folgers’ volume declined 7% and Dunkin’ Donuts (NASDAQ:DNKN) packaged coffee has fallen 13%. These coffee volume declines are mostly a result of both lower consumer purchases due to higher retail prices and inventory level management by key retailers as they anticipate a price decline. Shares of The J.M. Smucker Company are trading 0.18% higher today.
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