Now That’s A Rebound (DISH, TSN, GEOY, PSYS, WATG)
Stocks posted big gains after the European Union and International Monetary Fund agreed over the weekend to create a $1 trillion fund to support debt-laden EU nations and the euro currency. Whether this will be the balm for Europe’s woes is still to be seen, but for one day it eased the market’s fears. While volatility measured by the VIX decreased markedly today, we still expect stocks to be much more volatile than just a few weeks ago. We also don’t think it’s a great sign that the euro barely budged against the dollar today.
The market bounced back from last week’s smack down, with the Dow rising 405 points to 10,785. The S&P climbed 49 points to 1,160, while the Nasdaq soared 109 points to 2,375. Oil added $1.69 to $76.80 a barrel, while gold slipped -$9.60 to $1,200.40 an ounce.
In earnings news, shares of Dish Network (DISH) moved up 2.7% after the company reported that its Q1 profit dropped less than was expected. For the period ended March 31st, the satellite TV provider earned $230.9 million, or 52 cents a share, down from $312.7 million, or 70 cents a share, last year. Revenue grew 5% to $3.06 billion. Analysts were looking for EPS of 50 cents on revenue of $3.05 billion. The company added 237,000 net subscribers during the quarter. A total of 16 pro investors counted the stock among their top 15 holdings at the start of Q1, while 87 tickerspy members included the stock in their portfolios.
Tyson Foods (TSN) saw its shares sink -2.0% despite swinging to a better-than-expected profit during its second quarter. For the three months ended April 3rd, net income was $159 million, or 42 cents a share, compared with a loss of -$119 million, or -32 cents a share, a year ago. Adjusted EPS was 46 cents, which easily topped the Street’s 34-cent consensus. Revenue jumped 10% to $6.92 billion. A total of six pro investors counted the stock among their top 15 holdings at the start of Q1, while 111 tickerspy members included the stock in their portfolios.
Shares of GeoEye (GEOY) surged 11.7% on news that the company’s Q1 results topped estimates. The satellite imagery company also raised the low end of its FY10 outlook. For the quarter, GeoEye earned $774,000, or 4 cents per share, compared with a loss of -$1.7 million, or -9 cents per share, a year earlier. Adjusted EPS was 52 cents, which soundly beat estimates of 36 cents. Sales climbed to $80.4 million from $45.2 million. For FY10, the company guided for revenue of $310-$320 million, up from its previous view of $300-$320 million. Analysts are looking for full year revenue of $314.6 million.
Psychiatric Solutions (PSYS) said its Q1 profit was up 3% from the same quarter last year. Its shares fell -0.8%. Net income for the quarter was $28.2 million, or 50 cents a share, up from $27.8 million, or 49 cents a share, a year ago. Adjusted EPS came in at 56 cents, which topped estimates by two cents. Revenue soared 10% to $476 million. The behavioral hospital operator also confirmed it is in talks with a potential buyer.
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