MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Today - Wednesday, May 22, 2013
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11:09 AM Syneron Medical (ELOS +2.3%) moves up after reporting a slightly better Q1 on the top line. Total revenue decreased on a Y/Y basis however, largely due to lower PAD segment revenue in EMEA and Japan, which was partially offset by moderate revenue growth in all other geographies and growth in EBU segment revenue. The company also said its board of directors has appointed Amit Meridor as the company's new president, reporting directly to CEO, Shimon Eckhouse. Existing board member David Schlachet has also been appointed as chairman. Comment!
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8:54 AM More on Zale's (ZLC) FQ3: As in FQ2, the company reiterates its expectation of a profitable full year. Same-store sales rise 2.6% (constant currency basis and adjusting for February 29) while gross margin and operating margin expand 130 and 80 basis points respectively. YTD earnings are essentially double what they were after two quarters in 2012. The company realizes a $4M reduction in interest rate expense thanks to last year's refinancing. Additionally, ZLC appoints Terry Burman chairman of the board. Shares +26.3% premarket. (PR) Comment!
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8:10 AM More on American Eagle (AEO): Comparable-store sales fell 5% as they ran up against a tough comparable from last year when warmer weather lines were introduced earlier. Profit was helped by favorable products costs and sourcing efficiencies, but the retailer noted a higher rate of markdowns during the period. For Q2, flat comparable-store sales and EPS of $0.19-$0.21 are forecast. AEO -1.5% premarket. (PR) Comment!
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7:55 AM More on Target's (TGT) Q1: After guiding for flat comparable store sales just a little while ago, the 0.6% dip looks troubling to retail analysts. The number of transactions processed fell 1.9% during Q1, but the average transaction amount rose 1.3%. REDcard penetration rose impressively to 17.1% from 11.6% a year ago. Total store count +6 M/M and +20 Y/Y (not including Canada). TGT -2.0% premarket. (PR) Comment!
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7:45 AM More on Target's (TGT) Q1: The retailer cites soft sales in apparel and other seasonal and weather-sensitive categories as part of the reason for the mild Y/Y gain and slight top-line miss. Comparable-store sales in U.S. stores were off 0.6% during the period. Canada generated sales of $86M with a gross margin rate of 38.4%, though start-up expenses kept the launch of the 24 stores in the nation from adding to profitability. For full-year 2013, EPS of $4.70-$4.90 is forecast - lower than Target's prior guidance of $4.85-$5.05. (PR) Comment!
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7:31 AM Target (TGT): Q1 EPS of $1.05 beats by $0.13. Revenue of $16.7B (+1% Y/Y) misses by $0.12B. (PR) 3 Comments
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7:05 AM More on Toll Brothers (TOL) FQ2 earnings: Home deliveries up 33% in units, up 38% in dollars Y/Y. Average price of $577K, up from $557K a year ago. Average price of signed contracts of $678K, up from $585K a year ago. Backlogs up 52% in units (to 3,655) and 69% in dollars. Gross margin of 23.3% vs. 23.2% a year ago. "One year ago we were somewhat reluctant to raise home prices ... now we are finding ... a sense of urgency takes hold and demand continues to rise." Shares -0.6% premarket. CC at 2 ET. (PR) Comment!
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6:59 AM More on Staples' (SPLS) Q1: Sales fell off amid widespread store closings with comparable store sales down 2% Y/Y. The retailer saw more weakness in computer and tech categories which was only partially offset by growth in tablet sales. Staples.com sales were up 3%. The company generated $348M of operating cash flow during the quarter. Full-year EPS forecast to be $1.30-$1.35. (PR) Comment!
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6:25 AM More on Lowe's (LOW): Unlike competitor Home Depot (HD), the company misses on the top and bottom line as sales fall 0.5% Y/Y and comps decrease 0.7%. Exterior categories were impacted by cool temperatures and "greater precipitation" which "delayed [the] spring selling season." March's performance was "particularly soft." FY13 outlook: sales growth of ~4%, comps growth of ~3.5%, EPS of $2.05 against consensus of $2.08. Shares -4% premarket. (PR) 3 Comments
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