Europe Action Spells Pullback for Stocks (DIS, SODA, NILE, STEC, ORA, TXIC)
Stocks sank on the day once again, but also continued to show resiliency by rallying off their intraday lows. Concerns over Europe continue to grow following France’s election results and growing anti-austerity pressures in general across the region. With troubled EU nations now seemingly not wanting to make the necessary sacrifices to right their fiscal houses, it looks more and more likely that the summer pullback we have been predicting will come to pass.
The Geothermal Stocks Index was the top performing tickerspy Index on the day, led by Ormat Technologies (ORA) with a 8% gain. The Chinese Auto Parts Stocks Index was the day’s worst performing tickerspy Index, with Tongxin International (TXIC) down -26%.
Stocks fell on the day, with the Dow sliding -97 points to 12,835. The S&P dropped -9 points to 1,355, while the Nasdaq slumped -12 points to 2,935. Oil edged down -20 cents to $96.81 a barrel, while gold lost -$10.30 to $1,594.20 an ounce.
In economic news, the Commerce Department said wholesale inventories rose 0.3% in March to a record $480.4 billion. Economists had expected a 0.6% increase.
In earnings news, Dow component Walt Disney (DIS) said its fiscal second-quarter profit rose to $1.14 billion, or 63 cents per share, from $942 million, or 49 cents per share, a year earlier. On an adjusted basis, Disney earned 58 cents a share. Revenue climbed to $9.63 billion from $9.08 billion. Analysts had expected a profit of 55 cents on revenue of $9.57 billion. Shares of California-based Disney rose 1.7%.
Shares of SodaStream International (SODA) surged 26.5% after the company said its first-quarter profit jumped to $10.1 million, or 48 cents per share, from $5.5 million, or 28 cents per share, a year earlier. On an adjusted basis, SodaStream earned 55 cents. Revenue climbed to $87.9 million from $58.5 million. Analysts had expected a profit of 48 cents on revenue of $74 million. SodaStream said it expects full-year net income of $41 million, which is above a previous forecast of $39 million and the $40 million analysts were expecting. The company raised its revenue outlook to $384 million from $370 million. Analysts were expecting $368 million. Five pros counted SodaStream among their top holdings at the end of Q1 and more than 120 tickerspy members own the stock in their portfolios.
Shares of Blue Nile (NILE) soared 10.7% despite badly missing EPS estimates after the online jeweler reiterated its full-year guidance. The company reported first-quarter earnings of $154,000, or 1 cent per share, versus $2.3 million, or 16 cents per shares last year. Sales rose 4% to $83.1 million. Analysts had expected EPS of 6 cents on revenue of $82.2 million. For Q2, the company guided for EPS of between 4-10 cents, below the 16-cent consensus. However, the company reiterated full-year guidance of 70-85 cents a share on sales of $384-$417 million. Analysts were expecting EPS of 73 cents on sales of $389 million.
Shares of solid-state drives maker STEC (STEC) plunged -8.6% after the company forecast a second-quarter loss of -26 to -28 cents a share on revenue of $40-$42 million. Analysts were expecting a loss of -14 cents per share on revenue of $51.5 million. STEC posted a loss of -$10.7 million, or -23 cents a share, compared with a profit of $14.1 million, or 27 cents a share, a year earlier. On an adjusted basis, STEC lost -17 cents a share. Revenue slid -47% to $50.4 million. Analysts had expected a loss of -15 cents on $49.9 million in revenue. Four pros counted STEC among their top holdings at the end of Q1 and more than 500 tickerspy members own the stock in their portfolios.
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