Wall St. Brief: Lululemon LAGS, Facebook’s Pre-IPO Investors UNDERWATER
In after-hours trading on Wednesday, Men’s Wearhouse (NYSE:MW) shares dropped 16 percent after the retailer said for the second quarter, it expects to earn $1.12 to $1.13 per share, lower than the $1.22 analysts’ estimates. It had also predicted fiscal full-year earnings of $2.70 to $2.78, also coming in below the $2.80 expectations.
Early buyers of Facebook (NASDAQ:FB) who purchased the stock in the secondary market prior to the IPO are among those investors very disappointed. After the stock went up to $44.10 in March on the secondary market SharesPost, Facebook is in red on Thursday at $26.74, down .26 percent. These pre-IPO investors desiring to dump the stock now will have to hope for a recovery as they can’t really sell out until Facebook employees are allowed to do so in November, reported The Wall Street Journal.
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Carlyle Group (NYSE:CG) said on Wednesday will sell off its final equity position in Triumph Group Inc. (NYSE:TGI) through a public offering of almost early 4.7 shares of common stock; it will be conducted by investment funds and other entities associated with Carlyle with Credit Suisse Securities USA LLC acting as the underwriter. Triumph Group won’t receive proceeds from the offering but it is expected to close and settle on June 12, said MarketWatch.
Lululemon Athletica Inc. (NASDAQ:LULU) reported its first quarter earnings on Thursday and said its profit increased to $43.6 million ($0.32 per share), from $33.4 million ($0.23 cents per share) from the previous year. Sales rose to $285.7 million from $186.8 million. Analysts had forecast earnings per share of $0.30 cents per share from $270.9 million in sales. For the second quarter, Lululemon sees second-quarter earnings at $0.28 to $0.30 cents per share while for the year, it expects $1.55 to $1.60 earnings per share.
Vodafone Group PLC (NASDAQ:VOD) said on Thursday that Telefonica U.K. (NYSE:TEF) and Vodafone U.K. have entered into a new partnership agreement that will create one national grid running each company’s independent spectrum. Network infrastructure will be combined to create a national grid of 18,500 sites. With the joint venture, the companies will look to lessen the digital division between rural and urban areas as it targets 98 percent of the indoor population coverage across 2G and 3G by 2015, reported MarketWatch.
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