Summer Slog Ahead? (PETM, GES, BIG, HRL, SA, UMC)
Renewed fears over Greece caused a sharp market sell-off this morning, but stocks rallied late in the day to finish mixed. While the market is still well off it’s highs, it does continue to show some resiliency, but we still think it’s going to be a continued tough slog through the summer. However, we continue to think this will be a good period to begin building positions.
The Canadian Mining Stocks Index was the top performing tickerspy Index on the day, led by Seabridge Gold (SA) with a 17% gain. The Semiconductor Fabricator Stocks Index was the day’s worst performing tickerspy Index, with United Microelectronics (UMC) down -4%.
Stocks rallied to close mixed, with the Dow the only major index unable to get back into the green, falling -7 points to 12,496. The S&P edged 2 points higher to 1,319, while the Nasdaq rose 11 points to 2,850. Oil dropped -$1.95 to $89.90 a barrel, while gold slipped -$28.20 to $1,548.4 an ounce.
In economic news, the Commerce Department said new home sales rose 3.3% last month to a seasonally adjusted rate of 343,000, up from 332,000 in March. Economists were looking for sales of 339,000. The median price was $235,700, a 0.7% increase from March.
In earnings news, shares of PetSmart (PETM) surged 13.1% after the company said its fiscal first-quarter profit climbed to $94.7 million, or 85 cents per share, from $70.9 million, or 61 cents per share, a year earlier. Sales rose 9% to $1.63 billion, as same-store sales jumped 7.4%. Analysts had expected a profit of 73 cents per share on revenue of $1.6 billion. The company raised its full-year EPS guidance to $3.19-$3.31 from $3.02-$3.16. Analysts were expecting EPS of $3.11.
Shares of apparel retailer Guess (GES) soared 6.6% after the company reported a fiscal first-quarter profit of $26.6 million, or 30 cents per share, compared with $42.7 million, or 46 cents per share, a year earlier. Revenue dropped -2% to $579.3 million. Analysts had expected a profit of 26 cents on revenue of $569.8 million. Guess lowered its full-year revenue guidance to $2.70-$2.74 billion from $2.74-$2.78 billion. Analysts were expecting $2.74 billion. The company forecast full-year EPS of $2.50-$2.65. Analysts were expecting $2.58. For the current quarter, the company expects to earn 48-52 cents on $625-$635 million in revenue. Analysts were expecting a profit of 61 cents per share on revenue of $667.4 million.
Discount retailer Big Lots (BIG) forecast a fiscal second-quarter profit of 37-42 cents a share, well below the 54 cents analysts are expecting. The company’s fiscal first-quarter, meanwhile, profit fell to $40.7 million, or 63 cents per share, from $52.5 million, or 70 cents per share, a year earlier. On an adjusted basis, Big Lots earned 68 cents, below the 69-cent consensus. Sales increased 5% to $1.29 billion. Shares of Big Lots, nonetheless, rose 4.3%. Twelve pros counted Big Lots among their top holdings at the end of Q1 and nearly 160 tickerspy members own the stock in their portfolios.
Hormel (HRL), the maker of Spam, said its fiscal second-quarter profit climbed 17% to $127.9 million, or 48 cents per share, from $109.6 million, or 40 cents per share, a year earlier. Sales increased to $2.01 billion from $1.96 billion. Analysts had expected a profit of 42 cents per share on $2.04 billion in revenue. Hormel reiterated its full-year guidance of $1.79-$1.89 a share. Analysts were expecting $1.81. Shares of Hormel rose 1.1%. Four pros counted Hormel among their top holdings at the end of Q1 and nearly 110 tickerspy members own the stock in their portfolios.
More on this topic (What's this?)
The Numbers Are Not Tasty for Hormel (Benzinga, 2/23/12)
(HRL) Snack-On: Hormel in the Menu (Stock Blog Hub, 11/30/11)
Hormel Foods Corporation (NYSE:HRL) Ranked 2nd Among Its Industry Peers By Dividend Yield (Penny Stock DD, 11/16/11)
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