Services Sector Review: Barnes & Noble Slammed 17% on Spinoff News

R.R. Donnelley & Sons Co. (NASDAQ:RRD): RR Donnelley receives a $550M multi-year contract to provide American Media, which publishes magazines such as Star, OK!, and Men’s Fitness, with printing and services in North America and the U.K. The deal expands the companies’ 25-year relationship.

The shares closed at $21.33, up $6.87, or 47.51%, on the day. Its market capitalization is $4.38 billion.

Zumiez Inc. (NASDAQ:ZUMZ): Zumiez same-store sales: +10% beats consensus of +5.1%. Based on better than planned holiday sales and product margin, EPS guidance raised to $0.57-0.58 from $0.52-0.54 earlier.

The shares closed at $30.95, up $4.62, or 17.55%, on the day. Its market capitalization is $963.41 million.

Weight Watchers Intl (NYSE:WTW): Weight Watchers looks likely to land on a lot of those infamous “Best of 2012” stock lists with an exploding trend of employers, the government, and insurers aiming to keep employees healthy in order to help reduce their costs for health care. Credit Suisse analyst Charles Boorady adds to the buzz: “I think the potential is enormous. It cost 50 percent more to cover health-care costs for someone who is obese versus someone at normal weight. It’s a big focus of employers and insurers. We think Weight Watchers has a unique franchise to address that opportunity.”

The shares closed at $62.52, up $4.83, or 8.37%, on the day. Its market capitalization is $4.60 billion.

Barnes & Noble, Inc. (NYSE:BKS): The planned spinoff of Barnes & Noble’s Nook business could make it an acquisition target, claims Maxim Group’s John Tinker. With $1.5B in e-book/e-reader revenue, a price/sales multiple of 1x would translate into a $22/share buyout price, nearly twice B&N’s current level. But Amazon’s aggressive pricing and the Kindle Fire’s early success could put some would-be buyers on edge.

The shares closed at $11.24, down $2.31, or 17.05%, on the day. Its market capitalization is $676.37 million.

American Eagle Outfitters (NYSE:AEO): American Eagle Outfitters trades off its earlier lows, but still takes it on the chin today after the teen apparel retailer cut its Q4 guidance. The company says weaker than anticipated demand forced it to make much more aggressive promotions to drive late holiday sales.

The shares closed at $13.52, down $1.64, or 10.82%, on the day. Its market capitalization is $2.62 billion.

MetroPCS Communications (NYSE:PCS): MetroPCS suffers the biggest drop in the S&P 500 after reporting it added a less-than-expected 197K net new users in Q4, down from 297K in the year-ago period; analyst consensus had predicted 223K. Churn was 3.7%, up from 3.5% a year ago. Smaller competitor Leap Wireless (NASDAQ:LEAP) said yesterday it added an in-line 175K subscribers in Q4.

The shares closed at $8.01, down $0.78, or 8.87%, on the day. Its market capitalization is $2.90 billion.

Resources Connection, Inc (NASDAQ:RECN): Resources Connection gets hit hard after its FQ2 earnings missed both revenue and EPS estimates. Profit rose 45% Y/Y, primarily due to a favorable accounting adjustment, but gross margin fell to 37.9% from 39.5% amid higher direct costs of services.

The shares closed at $10.14, down $0.88, or 7.99%, on the day. Its market capitalization is $447.74 million.