MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
Flip Order
-
Monday, May 20
-
7:36 PM More on Urban Outfitters (URBN): Q1 beats on a per share basis but comes up short on revenue. Net profit rose 39% Y/Y as the clothing retailer posted record revenue and margins widened to 36.8% from 35.6% on fewer markdowns at Anthropologie. Comp retail sales, including catalog and online businesses, rose 9%, including 6% growth at its namesake brand, 8% at Anthropologie and 44% at Free People. Direct-to-consumer comp net sales were 14% higher, while sales at the company's wholesale business jumped 16%. Shares -4.1% AH. Comment!
-
6:06 PM With its stock offering complete, Tesla (TSLA) will likely pay back its DOE loan on Wednesday, tweets Elon Musk. He adds Tesla's supercharger network announcement (previous) will be pushed back to next week as a result. Shares -0.6% AH. 3 Comments
-
5:38 PM Carnival (CCL) -4.5% AH after warning it expects 2013 EPS of $1.45-$1.65, below prior guidance of $1.80-$2.10 and a consensus of $1.97. The cruise line operator says its net revenue yield will be down 2%-3% in 2013, worse than prior guidance for flat growth, thanks to soft ticket pricing, higher-than-expected trip cancellations, and higher sales/admin costs. It looks as if Hedgeye was right. RCL -1.5% in sympathy. NCLH could also end up falling. Comment!
-
4:46 PM DeVry's (DV) Harold T. Shapiro, Ph.D., a board member since 2001 and chairman since 2008, has notified DeVry that he at tdoesn't intend to stand for re-electionhe next annual meeting of shareholders on November 6. The board doesn't plan to immediately fill the vacancy, therefore the board's size will be reduced from 12 to 11 directors following the meeting. Additionally, it appoints Connie Curran, Ed.D. to replace Dr. Shapiro as board chair effective on that day, and at which time Dr. Shapiro will be named director emeritus. Comment!
-
4:27 PM More on hhgreg (HGG) FQ4 earnings: Comparable store sales off 9.8% Y/Y. FY2014 EPS guidance of $0.75-$0.90, comparable store sales of flat to negative 2.5%, net sales growth of 1-3.5%, 5 new stores to open. CC at 5:30 ET. Shares -8.1% AH. An SA Pro article set to come off embargo at dawn tomorrow says the company's decision to expand rapidly will prove a mistake thanks to cutthroat competition from e-commerce and other bricks-and-mortar stores (Sears, Best Buy) now in survival mode. (PR) Comment!
-
4:17 PM The Fresh Market (TFM) names Jeffrey Ackerman, most recently the CFO of mattress maker Sealy, its new CFO, effective June 3. Former CFO Lisa Klinger resigned last November to become the CFO of private apparel firm Kellwood. COO Sean Crane has been serving as interim CFO since then. (PR) Comment!
-
4:11 PM Dish (DISH -0.7%) has made a $2B bid for bankrupt Lightsquared's spectrum even though the FCC hasn't yet approved its use due to GPS interference concerns, Bloomberg reports. The report comes with Sprint (S) and Clearwire (CLWR) continuing to play hard-to-get in the wake of Dish's offers for the companies, and a day before Clearwire shareholders vote on a Sprint offer many think will get shot down, at least if it isn't raised from a current $2.97/share. Comment!
-
3:43 PM Hershey (HSY -1.5%) aims to take a piece of the world's biggest candy market when it debuts new condensed milk products in China. The initiative falls in line with a broad company plan to grow international sales to 25% of total sales by 2017 with China a key growth driver. What to watch: Hershey won't be the only foreign candy seller in the region with both Kraft Food Group and Nestle active. Comment!
-
3:24 PM Home Depot vs. Lowe's: The home improvement giants are in focus this week with both companies set to report earnings after a quarter which saw more snowfall than normal and a late start to the spring home and garden buying season. Though analysts expect superstorm Sandy boosted sales, the late tax refund syndrome which hit Wal-Mart could also be a factor. Tiburon Research Group is picking a favorite of the pair, forecasting the revenue and EPS growth at Home Depot (HD -0.1%) will outpace Lowe's (LOW -0.5%) for Q1, Q2, and Q3. (earnings model) Comment!
-
2:44 PM Coinstar (CSTR +1%) offers to let consumers watch The Hobbit: An Unexpected Journey for free as long they sign up for a Redbox Instant account, give up their credit card information, and take to Twitter to spread the word. The promotion could boost quarterly subscriber numbers for the streaming service as it runs into a soft patch for its movie release schedule and with Netflix breathing down its neck. Comment!
-
2:26 PM Pitney Bowes (PBI +2.6%) looks like the one of the five most interesting ideas out there to value-seeking SA contributor Ulfberht Capital. The take focuses on the premise Pitney Bowes can deleverage its balance sheet and will benefit incrementally from an improving U.S. economy. Though the dividend payout rate could be at risk, a 4.94% yield on PBI shares is also enticing. 4 Comments
-
1:54 PM The latest batch of data on gambling revenue from Macau looks promising with the average daily rate over a 7-day tracking period ending yesterday coming in ahead of expectations. If the MTD trend holds, May could be Macau's second best month and help boost the bottom lines for Melco Crown (MPEL +2.4%), Wynn Resorts (WYNN +1.4%), MGM Resorts (MGM +1.5%), and Las Vegas Sands (LVS +0.3%) during the quarter. Comment!
-
1:06 PM LMC Automotive thinks demand for automobiles in China will return to a double-digit pace next year and stay stable for the four to five years. It's a common enough forecast in the industry with IHS Automotive going so far as to say there is "no chance" for a negative growth environment in China due to the less than 7% of the population that owns a car. Rough forward-looking China capacity counts: General Motors (GM +1.4%) 5M vehicles a year; Hyundai and Kia (HYMLF.PK) combined 1.8M; Ford (F +0.4%) 1.2M by 2015; Volkswagen (VLKAY.PK) 4M by 2018. Comment!
-
12:55 PM Kellogg (K -0.9%) has seen its Special K brand be a star performer for the company for years as it continues to peck away more market share due to low-calorie products which have been decidedly on-trend. The next step from the brand is a wave of new products which will feature additional nutritional benefits on top of the low calorie counts. Kellogg has also developed a loyal following from its online weight management program which claims over 2M members. Comment!
-
12:39 PM Where's the love for Wal-Mart (WMT -0.3%)? Despite projections the retail giant will grow earnings at a double-digit rate, the stock trades with a lower multiple than defensive-oriented peers such as Hershey, Kellogg, and Procter & Gamble, observes Stephen Leeb. The company is also gobbling up market share in the grocery category and its e-commerce sales growth beat Amazon's (30% vs. 22%) during the last quarter. 4 Comments
-
12:38 PM Jefferies raises its price target on Zumiez (ZUMZ +1.8%) to $28 from $22 saying the specialty retail group has likely moved past "the noise in Q1" and faces easier compares going forward. Comment!
-
12:29 PM Priceline (PCLN +3%) is the "clear global winner" in the online travel agency space, writes Deutche's Ross Sandler, who is upgrading shares to Buy and raising his PT to $900. Sandler touts Priceline's "unique supply footprint, industry-high growth rates and margins, and over-exposure to ... international hotel bookings." He thinks margins (recently pressured by heavy search ad spend) will begin stabilizing in 2H, sees upside to consensus forecasts, and predicts earnings will "grow at a 20% CAGR over the next 3 years." Sandler is also raising his PTs for Expedia (EXPE unchanged) and TripAdvisor (TRIP +3.8%), while reiterating Buys. Comment!
-
11:21 AM Senator Charles Schumer wants airlines to reverse their steep increase on flight change fees after Delta Air Lines (DAL -0.5%), United Airlines (UAL -1.1%), American Airlines (AAMRQ.PK), and U.S. Airways (LCC -0.6%) all bumped off their charge to $200 from $150. Last year, the top airlines collected $2.6B in reservation change fees which accounted for a decent portion of the overall growth in the industry. 3 Comments
-
11:15 AM Pinterest says it's in partnership with several retail brands including Target (TGT -0.8%), Netflix (NFLX +0.3%), and Sony (SNE +2.8%) to include more detailed information on product pins. The photo-sharing website is starting to draw more interest from retailers due to its higher signal-to-noise ratio and average user income than other social networking sites. Comment!
-
10:41 AM Disney (DIS -0.5%) says Lucasfilm started production on the next animated Star Wars TV series with a fall 2014 release scheduled. The launch of the series will mark the first time the mighty Disney marketing machine is behind the show and is expected to have some tie-ins to the company's studio, theme park, and consumer products segments as well as the intriguing Disney Interactive - viewed as an earnings wildcard in the Disney mix. Comment!
-
10:27 AM A number of auto supplier stocks trade higher again as enthusiasm from last week on global demand spills over to early trading this week. A Goldman Sachs upgrade on Meritor (MTOR +6.7%) to a Buy rating is also helping to lift sentiment. Advancers: Federal-Mogul (FDML) +1.9%, Oshkosk (OSK) +1.4%, Icahn Enterprises (IEP) +2.8%, Stoneridge (SRI) +3.8%. Comment!
-
10:19 AM Ford (F +0.5%) thinks the percentage of U.S. vehicles sold with four-cylinder engines will rise to over two-thirds by the end of the decade, an estimate that looks like a "stretch" to some industry insiders. Though the automaker sees making more headway with its four-cylinder models in many segments, it fell short of saying the smaller engine would take off in the large SUV or pickup segment. Comment!
-
9:40 AM Shares of Rite Aid (RAD +4.7%) are up again after setting new 52-week highs on Friday. The company is not just a turnaround story but also a deleveraging story, according to SA contributor Matthew Smith. 2 Comments
-
9:16 AM Stifel Nicolaus downgrades Kansas City Southern (KSU) to a Sell rating after shares went on a M&A-fueled rally to push valuation high for a railroad concern. KSU +40% YTD, -0.6% premarket. 3 Comments
-
9:12 AM General Motors (GM) CFO Dan Ammann says the automaker is "reasonably" on its way to realizing cost savings by streamlining its business across divisions and operations. The automaker's reorganization involves breaking down long-standing fiefdoms within GM and banking on its ability to bring many tech and engineering functions in-house. Comment!
-
9:09 AM Jefferies downgrades Bed Bath & Beyond (BBBY) to Hold from Buy (price target to $71 from $76) citing valuation. "The company has all the potential to become an omni-channel leader in the home furnishings retail vertical in several years' time," notes analyst John Marrin. Up until then however, it will be "a pretty bumpy ride," he says. Comment!
-
9:08 AM Oppenheimer takes a more cautious view of Lowe's (LOW) in front of its Q1 earnings report with a downgrade to Perform and a $46 price target. LOW -0.5% premarket to $42.45. (earnings preview) Comment!
-
8:54 AM Barnes & Noble (BKS) is up 3.8% premarket after a weekend Barron's article pitches that the stock is an undervalued sum-of-the-parts story set to pop. Admittedly, the Microsoft-buying-Nook factor is a huge wildcard with B&N, but the valuation on the company's bookstore business looks appealing at current levels despite what happens with Nook Media. Comment!
-
8:38 AM Hyundai (HYMLF.PK) and Kia (KIMTF.PK) continue to lose market share in South Korea to foreign brands as sharply lower tariffs make exports cheaper for local buyers. Foreign automakers now account for 41% of the market, up from 28% just two years ago. The trend is most pronounced in the luxury market where BMW (BAMXY.PK), Audi (VLKAY.PK), and Mercedes-Benz (DDAIF.PK) are all picking up market share steadily. Comment!
-
8:31 AM E-Commerce China Dangdang (DANG) is upgraded by Morgan Stanley to an Overweight rating and assigned a price target of $6.50. DANG +5.1% premarket to $6.00. 3 Comments
-
8:29 AM The flood of tourists into Hong Kong from Mainland China looks promising to global retailers setting up shop in the region, although the tilt towards more bargain shopping could be a trend to watch for high-end sellers. Outlet malls have seen the biggest gains in traffic and sales in Hong Kong which sets up nicely for retailers that planned a strategy which pivots on squeezing profits from the channel. Hong-Kong watching: Nike (NKE), Limited Brands (LTD), Gucci (GUCG.PK), Prada, Louis Vuitton (LVMUY.PK), Coach (COH), Ralph Lauren (RL), Michael Kors (KORS), Swatch (SWGAY.PK), Burberry (BURBY.PK), and Tiffany (TIF). Comment!
-
7:59 AM J.C. Penney (JCP) receives a stinging price target cut from BMO Capital to $7 on the firm's take that it would take a miraculous "massive increase" in sales to return the retailer to profitability. A more likely scenario could be tangible equity turning negative in FY15, warns the firm. JCP -0.2% premarket. 5 Comments
-
7:49 AM More on Campbell Soup's (CPB) FQ3: Organic sales rose 4% during the period, led by a strong showing from the U.S. Simple Meals segment. Total sales benefited 5 percentage points from volume and mix while the acquisition of Bolthouse Farms added eleven percentage points. The company acknowledges some weakness with its U.S. Beverages segment as it faced increased competition in the juice category. FY13 EPS guidance is revised to $2.58-$2.62. (PR) Comment!
-
7:40 AM Best Buy's (BBY) store-within-a-store strategy is starting to pay off as wasted (no profits) space for DVD and CD products is converted into creative floor space that can produce profits, according to Janney Montgomery Scott's David Strasser. The analyst sees positive same-store sales for the current quarter. 1 Comment
-
6:57 AM The National Development and Reform Commission in China reports that prices for imported cards fell 3.4% Y/Y in April in contrast to a minor gain on prices for domestically-produced vehicles. It's one of the first solid indications that a government mandate to cut back on lavish spending in the nation is having an impact on automakers (GM, DDAIF.PK, BAMXY.PK). 4 Comments
-
6:56 AM Canaccord Genuity initiates coverage on Michael Kors (KORS) with a Buy rating and a lush price target of $82. The investment firm sees strong earnings potential for the retailer in new channels. Comment!
-
6:43 AM The impact of rebuilding on the East Coast after superstorm Sandy could help lift the results of Home Depot (HD) and Lowe's (LOW) for their FQ1 reporting periods, according to analysts. FEMA has approved $1.38B in assistance for Sandy victims and the pace of construction on new houses picked up over the last few months. 1 Comment
Other date
Latest Consumer Articles
