Jobs Number Provides Modest Lift (FDO, UNF, SONC, MOS, PANL)

It wasn’t exactly a groundswell, but the private job report from ADP Employer Services that showed a larger than expected rise in U.S. payrolls, was enough to give stocks a modest lift today. Next up will be the government’s employment report on Friday. The action this week has been a bit choppy but we are still optimistic the economy is mending and equities will reflect that improvement as the year progresses, though not without some slippage along the way.

The Computer Peripheral Stocks Index was the top performing tickerspy Index on the day, led by Universal Display (PANL) with a 9% gain. The Discount Retailer Stocks Index was the day’s worst performing tickerspy Index, with Family Dollar Stores (FDO) down -9%.

On the economic front, the ADP National Employment Report indicated that companies added 297,000 jobs last month, up from a revised gain of 93,000 in November and significantly better than the rise of 100,000 expected by economists.

In earnings news, shares of Family Dollar Stores dropped -9% after the discount retailer’s Q1 profit missed estimates. For the quarter ended November 27th, the company earned $74.3 million, or 58 cents a share, up from $67.6 million, or 49 cents a share, last year. Analysts were expecting EPS of 61 cents. Revenue rose 10% to $2 billion, while same-store sales grew 6.9%. Looking ahead, Family Dollar guided for FY11 EPS of $3.08-$3.23 on comparable-store sales growth of 5-7% and revenue growth of 8-10%. Wall Street is looking for FY11 EPS of $3.18. For Q2, the company expects EPS of 92-97 cents on same-store sales growth of 5-6%, while analysts are expecting Q2 EPS of $1.00.

Workplace uniform and clothing maker UniFirst (UNF) announced that its quarterly results topped estimates, sending its shares up 4%. For Q1, net income was $23.8 million, or $1.20 per share, compared with $23.6 million, or $1.21 per share, a year earlier. The Street was expecting EPS of only 96 cents. Revenue rose 6.6% to $273.1 million, which beat the $252.1 million consensus.

Shares of Sonic (SONC) rose 12% after the drive-in fast food restaurant chain reported that its Q1 earnings matched expectations. For the quarter, profit rose to $7.2 million, or 12 cents per share, from $6.2 million, or 10 cents per share, last year. Adjusted EPS was 10 cents, in line with estimates. Revenue fell -5.4% to $129.1 million, while same-store sales slipped -2.4%. Sonic said it expects to open 40-50 new franchise drive-ins during FY11. One Pro held the stock in their top-15 U.S.-listed equity positions at the end of Q3, and 50 tickerspy members hold the stock in their portfolios.

Fertilizer maker Mosaic (MOS) saw its shares inch up 3% after it posted strong Q2 results. For the period ended November 30th, the company earned $1.03 billion, or $2.29 a share, compared with $107.8 million, or 24 cents a share, last year. Adjusted EPS came in at $1.01, above analyst expectations of 91 cents. Revenue rose to $2.67 billion from $1.71 billion, topping estimates of $2.42 billion. 22 Pros held the stock in their top-15 U.S.-listed equity positions at the end of Q3, and 1,702 tickerspy members hold the stock in their portfolios.

Tags: FDO, MOS, PANL, SONC, UNF