Jordan Rohan and Michael Purcell, Equity research analysts at Stifel raised price target on Facebook Inc. (NASDAQ: FB) to $50. The firm reiterated a “buy” rating on the stock. The research report cited Facebook’s unexpected growth in the recent past, which breached the earlier price target of $38.01. The analysts expect that the stock’s uptrend will continue as the social networking giant has been consistently beating analysts’ expectation on revenue front even as margins are improving incrementally. Shares of Facebook, however, were nearly flat at $41.31 by mid-day trade on Friday.
Month: August 2013
GE Planning To Spin Off Consumer Lending Business
Wall Street Journal, citing sources familiar with the matter said on Friday that General Electric Co. (NYSE: GE) is planning to spin off its U.S. consumer lending operations, which is a part of the finance unit of GE capital. The move comes as the conglomerate looks to shift its focus towards core competencies, which is manufacturing industrial goods. The report said that the conglomerate is concerned about its exposure to the banking sector. Wall Street Journal also said that the initial process to spin off its consumer lending arm though an initial public offer has already begun.
K12 Shares Catapult After Q4 Results
K12 Inc. (NYSE: LRN), a technology-based education provider handed better-than-expected fiscal fourth quarter results. For the latest quarter, the Herndon, VA based Company reported net income of $2.2 million or 6 cents a share compared to a profit of $1.8 million or 5 cents a share, in the year-earlier quarter. Analysts polled by Thomson Reuters had expected earnings of 3 cents a share. Revenue jumped 19.2% in the latest quarter to $203.1 million from $170.4 million. Analysts’ consensus estimate was for revenue of $200.96 million.
Signet Jewelers Q3 Earnings Guidance Weak, Shares Fall Sharply
Although Signet Jewelers Inc.’s (NYSE: SIG) fiscal second-quarter revenue rose 3% and core earnings topped analysts’ expectation, shares fell sharply on Wednesday as women accessories provider’s guidance for the current quarter fell short of Street’s expectation. Revenue in the latest period also missed Wall Street’s expectation, mainly due to its disappointing performance in the U.K. Online sales jumped 29% in the fiscal second quarter while overall sales improved in the U.S. For the current quarter, Signet anticipates earnings of 37 cents to 43 cents while analysts’ expectation was for 48 cents a share.
Joy Global Beats Q2 Estimates But Cautious About Full-Year Revenue
Mining equipment company, Joy Global Inc. (NYSE: JOY) reported on Wednesday that fiscal third quarter net income slipped 5.3% as margin narrowed and sales declined. Still, core earnings and revenue topped Street’s expectation. Shares, however, fell sharply as the company expects some headwinds in coming months. Citing corrections in coal prices (China and Australia), CEO, Mike Sutherlin said to analysts in a conference call, “ (current trends) are unlikely to support annual revenue above $4 billion.” The Company backed its full-year earnings outlook though. Separately, the Company said that its board has approved shares buyback plan worth $1 billion.
Express Inc. Q2 Revenue Rises 7%, Same-Store-sales Up 6%
Shares of Express Inc. (NYSE: EXPR) gained sharply on Wednesday after the specialty retailer handed better-than-expected revenue for the fiscal second quarter. Earnings also matched Street’s consensus estimates. Encouraged by higher sales and growing customer traffic, the retailer also lifted its full-year earnings outlook. Same-store-sales rose 6% in the recently concluded quarter. E-commerce sales jumped 27%. Overall sales rose 7% to $486.2 million. For the current quarter, the company now expects earnings to be in the range of 21 cents to 26 cents a share while analysts’ forecast was for 25 cents.
DSW Tops Q2 Expectation
Shares of DSW Inc. (NYSE: DSW) rallied on Tuesday after the footwear retailer reported 15% increase in fiscal second quarter net income, aided by higher sales. For the quarter which ended August 3, the Columbus OH based company posted a profit of $33.7 million or 73 cents a share compared to a net income of $29.3 million or 65 cents a share, in the same quarter of last year. Stripping out onetime items such as expenses linked to luxury test and legacy charges related to an acquisition of RVI, the adjusted earnings stood at 97 cents a share up from 66 cents a share, in the year-earlier quarter. Sales climbed 9.7% to $562.1 million. Analysts’ consensus estimate was for earnings of 80 cents a share on revenue of $560 million.
Akorn Agrees To Acquire Hi-Tech Pharmacal
Generic drugmaker, Akorn Inc. (NASDAQ: AKRX) has agreed to acquire its smaller rival Hi-Tech Pharmacal Co. (NASDAQ: HITK) in deal valued at $640 million. The acquisition will allow Akorn to gain traction in the eye-care drug market by expanding its portfolio, which includes ointments and oral liquids. According to the terms of the deal, Akorn will pay $43.50 for each share held in Hi-Tech, which implies a premium of 23.5% to Hi-Tech’s closing stock price on Monday. The deal, which is all-cash, makes Akorn as the third largest U.S. generic ophthalmic player. The acquisition will considerably increase over-the-counter and prescribed drug sales, the company said in a statement.
Sanderson Farms Beats Q3 Estimates
Sanderson Farms Inc. (NASDAQ: SAFM) reported sharp jump in fiscal third quarter earnings. The poultry producer’s bottom line was bolstered by higher prices of chicken products. In the latest period, overall poultry prices increased 12% while prices of boneless chicken breasts soared 32% from the year-earlier quarter. The earnings stood at $67.9 million or $2.95 a share compared to a profit of $28.7 million or $1.25 a share, in the same quarter of last year. Sales jumped 18% to $739 million. Both earnings and revenue best Street’s expectations. Analysts expected earnings of $2.62 a share on revenue of $722 million.
Tiffany Q2 Earnings Up 16%
Luxury jewelry retailer, Tiffany & Co. (NYSE: TIF) reported on Tuesday that fiscal second quarter earnings rose 16%, aided by strong sales growth in Asia Pacific and improved margin. The Company also raised its full-year earnings guidance. Tiffany now expects earnings to be in the range of $3.50 to $3.60 a share up from its previous guidance of $3.43 to $3.53 a share. For the period ended July 31, the Company posted a profit of $106.8 million or 83 cents a share compared to a net income of $91.8 million or 72 cents a share, in the year earlier quarter. Same-store-sales grew 5% (excluding the impact of currency fluctuation). Sales rose 4.4% to $925.9 million.