Earnings Around the Corner After Strong Q1 for Stocks (RIMM, TIBX, FINL, GPN, HYGS, TOF)
Stocks closed out the quarter on a mixed, but generally solid note. With the S&P surging 12%, led by tech and financial stocks, the market has gotten off to a very good start to 2012. With earnings around the corner, we’ll soon see if the momentum can continue, or if there is a let-up.
The Fuel Cell Stocks Index was the top performing tickerspy Index on the day, led by Hydrogenics (HYGS) with a 7% gain. The Dairy Product Stocks Index was the day’s worst performing tickerspy Index, with Tofutti Brands (TOF) down -13%.
Stocks ended the day mixed, with the Dow up 66 points to 13,212. The S&P added 5 points to 1,408, while the Nasdaq fell -4 points to 3,092. Oil edged up 24 cents to $103.02 a barrel, while gold advanced $17.10 to $1,669.30 an ounce.
In economic news, the Commerce Department said personal spending rose 0.8% in February, following an upward revision to a 0.4% increase in January. Economists had expected a 0.6% increase for February. Personal incomes rose 0.2%, but economists had expected a 0.4% increase. Elsewhere, the Thomson Reuters/University of Michigan final March consumer sentiment reading climbed to 76.2 from 75.3 in February. The preliminary March reading was 74.3.
In earnings news, shares of BlackBerry maker Research In Motion (RIMM) surged 7.1% after CEO Thorsten Heins did not rule out a sale of the company. After the bell Thursday, RIM reported a fiscal fourth-quarter loss of -$125 million, or -24 cents a share. On an adjusted basis, RIM’s profit slid to $418 million, or 80 cents a share, from $934 million, or $1.78, a year earlier. Revenue fell to $4.19 billion from $5.56 billion. Analysts had expected a profit of 81 cents a share on revenue of $4.54 million.
Shares of Tibco Software (TIBX) tumbled -6.0% after the company forecast a fiscal second-quarter profit of 22-23 cents a share on revenue of $240-$244 million. Analysts were expecting an adjusted profit of 23 cents a share and revenue of $242.2 million. Tibco said its first-quarter profit climbed to $20.6 million, or 12 cents a share, from $16 million, or 9 cents a share, a year earlier. On an adjusted basis, the company earned 20 cents a share. Analysts had expected EPS of 19 cents on revenue of $222.4 million.
Shares of athletic apparel retailer The Finish Line (FINL) plunged -16.3% after the company said its profit for the current quarter could fall up to -30%. That implies EPS of 21 cents compared with 30 cents a year earlier. Analysts were expecting 36 cents a share. For the fiscal fourth-quarter, Finish Line earned $41.9 million, or 80 cents per share, compared with $34.3 million, or 63 cents per share, a year earlier. On an adjusted basis, the company eared 81cents. Revenue rose to $456.3 million from $384.6 million. Analysts had expected EPS of 81 cents on revenue of $432.6 million. Three pros counted Finish Line among their top holdings at the end of Q4 and more than 60 tickerspy members own the stock in their portfolios.
Shares of payment processor Global Payments (GPN) slid -9.1% after The Wall Street Journal reported the company has been hit by a security breach that could put up to 50,000 credit card users at risk. The full extent of the breach couldn’t be determined, the Journal reported, citing an unidentified source. The company confirmed the breach late in the day. “It is reassuring that our security processes detected an intrusion. It is crucial to understand that this incident does not involve our merchants or their relationships with their customers,” Chairman and CEO Paul R. Garcia said in a statement. Eleven pros counted Global Payments among their top holdings at the end of Q4 and almost 60 tickerspy members own the stock in their portfolios.
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