News DJ US HOT STOCKS: Hot Topic, Gymboree Active In La...
Wednesday, March 4, 2009 5:06 PM
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News for 'ABK' - (DJ US HOT STOCKS: Hot Topic, Gymboree Active In Late Trading)
U.S. stocks were higher Wednesday as the Dow Jones Industrial Average rose 2.2% to 6875 and the S&P 500 rose 2.4% to 713. The Nasdaq Composite was up 2.5% to 1354. Among the companies whose shares are actively trading in the after-hours session are Hot Topic Inc. (HOTT), Gymboree Corp. (GYMB) and PetSmart Inc. (PETM).
Hot Topic continued its streak of strong same-store sales in February and reported same-store sales rose 11% in February, easily beating estimates by analysts surveyed by Thomson Reuters. The young-adult retailer has profited recently from selling gear connected to the teenage vampire movie "Twilight," and is one of only three teen retailers projected to report an increase in same-store sales in February. Shares leapt 8.6% to $9.20 in late trading.
Gymboree shares fell 48% to $18.70 in late trading after it said it would see first-quarter comparable-store sales fall 20% to 25% and would see first quarter earnings of 18 cents to 25 cents when analysts had been predicting 76 cents a share. The children's clothes maker reported its fourth quarter largely in line with expectations. (GYMB)
PetSmart's fiscal fourth-quarter net income rose 4% on higher sales. But shares fell 4.9% to $17.60 in after-hours trading as the pet superstore's earnings were at the low end of its November guidance.
Zumiez Inc. (ZUMZ), a specialty retailer of sports-related apparel, footwear and accessories for high-school and college-aged consumers, reported its same-store sales dropped 13% in February, worse than Wall Street expected. Shares inched up 0.5% to $7.21 after hours.
Tax filing servicer Jackson Hewitt Tax Service Inc. (JTX) reported its fiscal third quarter slightly above expectations but warned it was seeing weak returns for the fiscal 2009 year, with earnings and revenue declining when Wall Street was predicting growth. The company called the release "disappointing news" but also said it had scored a big win by becoming "the exclusive provider of tax preparation services" in Wal-Mart Stores Inc. (WMT) for the 2010 tax season. Shares slipped 3% to $6.10 in late trading.
Sigma Designs Inc. (SIGM) reported its fourth quarter stronger than expected and said they believe there is a stabilizing of demand. Shares jumped 7.7% to $15.30 in the after-hours session.
Regular Session Movers:
ADC Telecommunications Inc. (ADCT, $3.22, $0.72, 28.80%) said it would cut about 6% of its work force as it posted a much wider fiscal first-quarter net loss on lower sales and big write-downs of goodwill and other intangible assets. But shares of the maker of telecommunication software and hardware rose as the company's fiscal second-quarter forecast was in line with analysts' estimates.
Big Lots Inc. (BIG, $17.15, $2.61, 17.95%) said its fiscal fourth-quarter net income fell 14% on a loss from discontinued operations and weaker sales. However, shares rose as the discount retailer projected earnings for the new year above analysts' estimates.
MGM Mirage (MGM, $2.21, -$0.41, -15.65%) warned late Tuesday it could violate its debt covenants this year and be in danger of default if economic conditions continue to erode. The struggling casino giant said it will delay filing its annual report and that its auditor is likely to include an explanatory paragraph raising doubt about MGM's ability to continue as a going concern, according to a filing with the Securities and Exchange Commission.
General Electric Co. (GE, $6.69, -$0.32, -4.56%) reiterated Wednesday it has no need to raise additional capital, saying it has "stressed" its big financial-services portfolio to prove it. GE shares fell for the fourth straight trading session Wednesday to levels not seen since 1991, as the cost of protecting the debt of its ailing financing arm continues to soar.
Cox Radio Inc. (CXR, $4.84, -$0.31, -6.02%), which operates radio stations throughout the South, reported its fourth-quarter net loss ballooned as write-downs rose five-fold amid slumping advertising revenue.
Moody's Investors Service placed its credit ratings for bond insurer Ambac Financial Group Inc. (ABK, $0.45, -$0.03, -6.25%) on watch for downgrade, as losses mount from the company's mortgage-related risk exposures.
The Wall Street Journal said movie-rental chain Blockbuster Inc. (BBI, $0.47, $0.25, 113.64%) has hired law firm Kirkland & Ellis LLP to explore restructuring options, from refinancing its debt to filing for bankruptcy protection if the company can't quickly resolve its liquidity issues, citing people familiar with the situation. The Dallas-based company said it had hired the firm to help with "ongoing finance and capital-raising initiatives" but said it does "not intend" to file for bankruptcy protection.
Verifone Holdings Inc.'s (PAY, $4.36, $0.56, 14.74%) fiscal first-quarter loss widened as an impairment more than offset a double-digit percentage increase in revenue. The electronic-payment systems maker also cut its guidance for fiscal 2009. However, shares rose as the adjusted earnings were in line with prior guidance.
Financial-services concern Phoenix Cos. (PNX, $0.44, $0.06, 15.79%) said Wednesday it may have overstated its fourth-quarter loss, which it reported last week, by $46 million, or 40 cents a share. But shares fell as the company also said State Farm Mutual Automobile Insurance Co. has notified Phoenix that it will stop selling its products, pending an evaluation of the relationship between the companies. Phoenix said it is assessing the effect of the suspension on its business prospects and strategy.
Almost Family Inc. (AFAM, $16.63, -$1.47, -8.12%) shares jumped as much as 14% Wednesday before reversing themselves, as the provider of home-health nursing services reported fourth-quarter results that beat analysts' estimates. Analysts said they weren't sure why the shares started trading lower and said the fundamentals of the quarter were strong.
Moody's Investors Service upgraded its credit ratings on Amazon.com Inc. (AMZN, $64.81, $3.11, 5.04%) two notches to investment grade, saying the online retail giant has shown the ability to generate strong growth and maintain profitability despite the challenging climate for retailers.
(MORE TO FOLLOW) Dow Jones Newswires
March 04, 2009 17:05 ET (22:05 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 05 05 PM EST 03-04-09
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