Today - Tuesday, April 28, 2015
- Rent-A-Center (RCII +10.9%) makes a strong move higher after beating on both lines of its Q1 report.
- Comparable-store sales for the Acceptance Now program jumped 34.1% during the period with a new 90-day pricing option helping to lift demand.
- Shares of RCII poked their heads over $30 for the first time since February.
- Previously: Rent-A-Center beats by $0.02, beats on revenue (Apr. 27 2015)
- Execs with Macy's (M +0.2%) are out showcasing the company's new app which is one of more advanced in the sector.
- Shoppers can use the app to scan product information, check inventory, and pay for purchases.
- An image search function matches pictures to clothes the company sells.
- Beta testing on the use of beacon technology is also in the works.
- The company also uses its online and mobile channels to test consumer responses to products and drill down to a region by region basis.
- Fiat Chrysler Automobiles (NYSE:FCAU) announces it opened a new facility in Brazil which becomes its largest ever.
- The plant will be used to manufacture the Jeep Renegade for export across Latin America and has the capacity to handle three separate model lines at once.
- 650 welding robots are part of the working force at the complex along with 9K employees of the human form from the company and its suppliers.
- Shares of Cal-Maine Foods (CALM +13.4%) fly higher on strong volume in a move that could be ending the dreams of some shorts.
- Short interest on CALM has been on the rise since January.
- Volume on CALM is already 2X normal daily activity.
- On the fundamental side, strong pricing trends and lower feed costs have helped Cal-Maine grow margins.
- Children's Place (PLCE +0.6%) calls on shareholders to reject the board candidates nominated by Macellum and Barington Companies Equity Partners.
- The company notes it has turned its board over adequately and is on a path to transform into an omni-channel brand.
- Baringon and Macellm have pushed for a strategic sale or refining capital allocation plans.
- Shares of PLCE have out-performed the S&P Retail ETF over the last 52 weeks, 28.6% vs. 20.0%.
- The company's annual meeting is set for May 22.
- Some port truck drivers in Long Beach and Los Angeles are on strike for a second straight day, although officials say there hasn't been a noticeable delay in port activity yet.
- The group is working to be classified as employees, instead of independent contractors.
- Previously: Freight truckers threatening strike at key West Coast ports (April 27)
- Natural Grocers Vitamin Cottage (NGVC +6.8%) trades higher after being tapped by RBC Capital for a run higher.
- The investment firm initiates the stock with an Outperform rating and $35 price target.
- Natural Grocers Vitamin Cottage is coming off a quarter of topping estimates for comparable-store sales with a 6.2% mark.
- Execs with Ford (F -0.2%) indicated the back-half of the year should be stronger than the first half during the company's earnings call today.
- Increased production levels of the F-150 and profitability in Asia are two trends to watch.
- Profitability in South America and Europe will continue to be pressured by F/X, although it's noted there is some relief on costs for the bottom line due to the swings.
- Ford's outlook for its 2015 profit margin in North America is raised to +8.5% to +9.5% from +8% to +9% prior.
- Strong pricing is expected to be a benefit as volume ramps up in the region.
- Inventory is at targeted levels, notes management.
- Previously: Ford Motor misses by $0.03, revenue in-line (Apr. 28 2015)
- Previously: Lower volume and F/X clip Ford's Q1 results (Apr. 28 2015)
- Earnings call webcast
- Goldman Sachs gives a quick lift to Wynn Resorts (NASDAQ:WYNN) with an upgrade on the casino operator to a Buy rating from Neutral.
- Shares of Wynn are up 1.3% after sitting in negative territory.
- The current price on Wynn of $130.31 sits on the low end of the 52-week trading range of $121.53 to $222.33
- Wynn Resorts reports earnings after the bell.
- Overstock.com (OSTK -9.6%) trades lower as investors hone in on the 20% increase in sales and marketing expenses and a 25% gain in G&A/technology costs during Q1.
- Gross profit rate during the quarter increased 10 bps to 18.9%.
- The contribution margin rate was flat Y/Y at 11.9%.
- Previously: Overstock.com misses by $0.09, beats on revenue (Apr. 27 2015)
- Stepan (SCL +13.2%) soars after topping the consensus Q1 EPS mark by a healthy margin.
- Volume was up 2% during the period and F/X cut six percentage points off of growth.
- The company made strides with cost cutting as the selling expense category fell 8.1% Y/Y to $12.997M.
- Previously: Stepan beats by $0.33, misses on revenue
- Shares of Fresh Del Monte (FDP -8.4%) retreat after the company misses Q1 EPS estimates by a wide margin on revenue growth of 2.7%.
- Sales in North America were up 5.3% Y/Y to $575.6M.
- The company spent more money than expected to procure bananas, while grape and tomato quality issues also arose.
- Operating income fell 13.7% to $56.3M.
- Previously: Fresh Del Monte Produce misses by $0.13, revenue in-line
- 1-800-Flowers.com (FLWS +7.2%) soars after an earnings beat and guidance lift.
- A key point from the report is the 815K new customers added to the mix during the quarter.
- Over half of the company's 1.9M orders placed came from repeat customers, a mark which could move higher as the integration of Harry & David is maximized.
- Shares of FLWS broke ove $12 for the first time this month
- Previously: 1-800 FLOWERS.COM beats by $0.06, beats on revenue
- Previously: Harry & David shows up for 1-800-Flowers.com in FQ3
10:06 AM| Comment!
- Box office forecasts from Wall Street for Star Wars: Episode VII range between $1.75B to $2.0B in a development that's not unwelcome news to the exhibitor sector (CKEC, AMC, CNK, RDI, MCS).
- Entertainment publications peg their box office predictions even higher, with some seeing #1 Avatar ($2.788B) and #2 Titanic ($2.187B) in range to be reeled in on the all-time box list.
- The J.J. Abrams-directed film debuts on December 18, 2015 to give theater chains a good two-week Q4 boost.
- The YTD U.S. box office tally stands at $3.227B with 197 films released.
- Another company looking for Episode VII to be a major blockbuster and rev up interest in standalone Star Wars films is Hasbro (HAS -0.3%) which holds the key toy license.
- Related: Disney gets afternoon rise as 'Star Wars' event launches (Apr. 16 2015)
- MGM Resorts (MGM) sends a letter to shareholders in advance of the company's annual meeting set for May 28.
- The board indicates it will "actively evaluate" all strategic options including a REIT conversion.
- In response to attacks from activist investor Land & Buildings on performance, MGM notes its stock has beat the returns of the Dow Jones U.S. Gaming Index over a 1-year and 3-year time frame.
- Land & Buildings has a conference call scheduled for April 30 to discuss the "urgent" need for changes with the board. Don't expect the firm to pull any punches.
- The looming presence of L&B and MGM's higher percentage of Las Vegas revenue has helped its shares outperform peers Las Vegas Sands and Wynn Resorts over the last month.
- Good Times Restaurants (NASDAQ:GTIM) launches a public offering of 2.375M shares.
- The company plans to use the funds to help pay for the acquisition of small chain Bad Daddy's Burger Bar and fund development.
- There are ~9.45M shares of Good Times Restaurants in the hands of shareholders at the moment.
- GTIM +0.4% premarket to $8.32. YTD +19.1%.
- Jamba (NASDAQ:JMBA) takes another step in its shift to a self-described "asset-light" model with the refranchising of stores in California.
- The company aims to generate $30M to $40M in cash this year from the move to refranchise a group of stores.
- Over time, Jamba expects 90% of its stores to run under the franchise setup,
9:06 AM| Comment!
- Supervalu (NYSE:SVU) reports identical-store sales for the Save-A-Lot network rose 3.6% in Q1.
- The Retail Food segment saw identical-stores sales increase 1.1%.
- Gross profit rate +20 bps to 15.1%.
- SG&A expense rate +20 bps to 12.0%.
- Operating earnings rate +10 bps to 3.2%.
- Previously: SUPERVALU beats by $0.03, misses on revenue
- SVU -1.3% premarket.
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