News Driven Stocks of the Week: Lululemon Surprises, WebMD Crashes
lululemon athletica (NASDAQ:LULU): Comparable-store sales for Q4 are predicted to show a low- to mid-twenties percentage increase on a constant-dollar basis. This compares to the company’s previous guidance for Q4 of low- to mid-teens comparable-store sales.
Tiffany (NYSE:TIF) dropped its full-year EPS guidance to $3.60-$3.65 from its previous outlook of $3.70-$3.80. Analysts’ consensus estimate was $3.76. The luxury retailer claimed that during the two months ended December 31 its sales had slumped markedly in the U.S. and Europe. However, the company’s holiday sales still rose 7 percent year-over-year, and its same-store sales increased 4 percent. Tiffany CEO Michael Kowalski said, “We remain confident of our ability to expand our worldwide presence, to serve the growing global demand for Tiffany products and to achieve a solid rate of annual growth in sales and earnings in 2012.” Tiffany fell $6.99, or 10.44 percent, in early trading to $59.95. Other luxury retailers also dropped, with Saks (NYSE:SKS) declining 2.79 percent to $9.41 and Nordstrom (NYSE:JWN) down 0.99 percent to $49.17.
RBC forecasts that bank stocks could climb 20 percent to 25 percent in 2012, and Fifth Third Bancorp (NASDAQ:FITB) is one of analyst Gerard Cassidy’s top picks for 2012.
JetBlue Airways (NASDAQ:JBLU): American (NYSE:AMR), Delta (NYSE:DAL), United (NYSE:UAL) and US Airways (NYSE:LCC) have all tacked a $3 fee onto flights to Europe, as a means of offsetting the expense of a rigorous new European emission plan, The Los Angeles Times reported.
Green Mountain Coffee Roasters (NASDAQ:GMCR) announced it will reveal financial results for its fiscal 2012 first quarter in a press release following the close of the financial markets on Feb. 1, 2012.
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SUPERVALU’s (NYSE:SVU) loss expanded to $750 million ($3.54 per diluted share) from $202 million (loss of 95 cents per share) in the same quarter a year before. Revenue slipped 4 percent to $8.33 billion from the year earlier quarter. Same-store sales growth was -2.5-3 percent.
Crocs, Inc. (NASDAQ:CROX) foresees a bright future, with the company’s announcement that it expects annual revenue for fiscal 2011 to exceed $1 billion for the first time when year-end results are reported. Revenue is believed to be at the top end of the earlier guidance of $200-205 million for the fourth quarter of 2011. I/B/E/S Estimates report that analysts predict Crocs will announce revenue of $1 billion for fiscal 2011, with $204 million in Q4.
Citing “not enough merchandise traction” and “too much management flux,” Citi lowered Urban Outfitters, Inc. (NASDAQ:URBN) to sell from buy and cuts its price target to $20 from $34.
Lennar Corporation (NYSE:LEN): The residential construction company’s net income dipped to $30.3 million (16 cents per share) versus $32 million (17 cents per share) a year earlier – a 5.5 percent fall from the year earlier quarter. Revenue climbed 10.8 percent to $952.7 million from the year earlier quarter, but the company still missed Wall Street’s mark by $0.01.
The Goodyear Tire & Rubber Company (NYSE:GT) was down after the company reported volume softness across all regions. KeyBanc said the mood of Goodyear’s Detroit presentation was guarded as management suggested near-term trends have been soft, including slower winter tire sales in Europe, North American demand for both consumer and commercial replacement and softening in Asia and Latin America.
China New Borun Corp (NYSE:BORN) skyrocketed following the announcement that it has already signed pre-sales agreements worth a total of around 90 percent of the company’s total edible alcohol production volume in 2012.
Masco Corporation (NYSE:MAS) topped the S&P 500 winners. The homebuilder is drafting on Lennar’s good fortune.
SYNNEX Corporation’s (NYSE:SNX) price target increased to $37 from $32 at Stifel Nicolaus after reports from SYNNEX of better than expected Q4 EPS. Stifel Nicolaus maintains a Buy rating on the stock.
WebMD Health Corp. (NASDAQ:WBMD): Morgan Stanley reduced the stock to underweight after WebMD lost about 25 percent of its value in yesterday’s action.
Indian software exporter Infosys Ltd ADR (NASDAQ:INFY) having estimated sales of $7.08B-$7.2B in October, predicts ~$7.03B in sales for the year period ending March 31. FQ3 earnings of 23.7B rupees ($458M) up 15.4%with Y/Y Topping quarterly profit expectations.
After announcing a $200M buyback of its common stock from cash on hand over the next 12 months, Dick’s Sporting Goods, Inc. (NYSE:DKS) shares caught a bid. Blaming warm winter weather the company is expecting Q4 profit of $0.87-$0.88 and full-year $2.01 to $2.02, and now additionally lowers the high-end of Q4 and FY2011 EPS guidance by a penny.
Tractor Supply Company (NASDAQ:TSCO) outperform rated shares jumped after raising FY11 EPS to $2.97-$2.99 from $2.85-$2.89, FY11 EPS consensus of $2.91. Tractor Supply notes that, compared to the previously indicated range of 5c-6c per diluted share the 53rd week in FY11 represented a benefit of approximately 9 cents per diluted share. RW Baird raised Tractor Supply price target to $85 from $83, following the company’s positive Q4 pre-announcement. Current momentum, increased traffic and comps, and its small market opportunity were cited as reasons.
A lawsuit filed by Universal Entertainment’s Kazuo Okada has filed a lawsuit Wynn Resorts, Limited (NASDAQ:WYNN) seeks to force Wynn Resorts to open up their books. This pertains to a $129M pledge to a Macau university and to delve into details following Stephen Wynn’s divorce. Okada says he’s seeking to protect his $380M stake in Wynn.
Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) announced better-than-anticipated preliminary financial results for the first quarter – revenue of $239 million versus consensus estimates of $215.17 million. MFLEX CEO Reza Meshgin said, “We expect our net sales results to exceed the high end of our previous guidance range as the supply chain shortages from the flooding in Thailand improved throughout the quarter. We also saw an increase in shipments to our largest key customer. The increased orders improved capacity utilization which we expect to result in gross margin also exceeding the high end of our previous guidance.” The company predicts fiscal Q1 net sales of approximately $239 million, comparable to the same period of the prior year. Gross margin during Q1 is expected to be approximately 12.2 percent, compared to 14.3 percent for the same period in the previous year. Shares of Multi-Fineline Electronix, Inc. are up 17.84 percent today.
PharMerica Corporation (NYSE:PMC): The FTC is reportedly ready to stop Omnicare’s (NYSE:OCR) suggested $716 million offer for fellow pharmaceutical companyr PharMerica, with a judgement expected by the end of next week. “The FTC is not offering Omnicare any remedies,” says a source, so it s not attempting to find ways to validate the deal. Today shares of PharMerica Corporation are down 7.41 percent today.
JA Solar Holdings Co., Ltd. (NASDAQ:JASO): A surge in demand at the end of 2011 has caused solar firms to think about a slight price increase. Investors are bidding JASO higher on the news.
China GrenTech Corporation Limited (NASDAQ:GRRF) has entered a ’going private’ agreement and plan of merger with a group of buyers for $3.15/ADS. Buyers include Talenthome Management Ltd, a British Virgin Islands exempted company, and Xing Sheng Corp., a Cayman Islands exempted company wholly-owned by Parent. Parent is indirectly jointly owned by Rong Yu, the company’s director and CFO; Yingjie Gao, the company’s chairman and CEO and Yin Huang. The Buyer Group collectively beneficially owns about 41.9 percent of the firm’s issued and outstanding ordinary shares and plans to underwrite the merger and other projects contemplated by the Merger Agreement through funds from a loan facility in the amount of HK$320,000,000 from Guotai Junan Finance Ltd.
Linn Energy, LLC (NASDAQ:LINE) filed to sell 17 million shares of common stock yesterday. Shares of Linn Energy, LLC sold off on the news.
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