The unofficial closing bells put the DJIA down more than 33 points to 12,598.63 (-0.26%), the NASDAQ fell nearly 20 points (-0.68%) to 2,874.04, and the S&P 500 fell -0.44% or nearly 6 points to 1,324.81.

There were several analyst upgrades and downgrades today, including Cisco Systems Inc. (NASDAQ: CSCO) raised to ‘overweight’ at Barclays; Patriot Coal Corp. (NYSE: PCX) cut to ‘market perform’ at FBR; Aetna Inc. (NYSE: AET) cut to ‘hold’ at Argus; Baker Hughes Inc. (NYSE: BHI) cut to ‘neutral’ at JPMorgan; and SandRidge Energy Inc. (NYSE: SD) raised to ‘hold’ at Canaccord Genuity.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: 8×8 Inc. (NASDAQ: EGHT) is down -1.5% at $3.86; Chico’s FAS Inc. (NYSE: CHS) is up 4.2% at $15.28; Deere & Co. (NYSE: DE) is down -3.1% at $74.23 (more coverage here); Eagle Materials Inc. (NYSE: EXP) is down -5.2% at $33.13; LiveDeal Inc. (NASDAQ: LIVE) is up 5.9% at $6.14; and Target Corp. (NYSE: TGT) is up 0.7% at $55.49 (more coverage here).

On Thursday we are scheduled to get earnings from Bon-Ton Stores Inc. (NASDAQ: BONT), Dollar Tree Inc. (NASDAQ: DLTR), E-Commerce China Dangdang Inc. (NASDAQ: DANG), GameStop Corp. (NYSE: GME), Jinkosolar Holding Co. Ltd. (NYSE: JKS), Ross Stores Inc. (NASDAQ: ROST), Sears Holdings Corp. (NASDAQ: SHLD), Teekay Corp. (NYSE: TK), and Wal-Mart Stores Inc. (NYSE: WMT).

Other standouts from today include the following stocks:

J.C. Penney Co. Inc. (NYSE: JCP) is down -19.2% at $26.92. The retailer absolutely failed on quarterly results. More coverage here.

Rosetta Genomics Ltd. (NASDAQ: ROSG) is up 263% at $5.88. The medical test making firm will have one of its tests covered by Medicare. There was also a 1-for-15 reverse stock split. More coverage here.

Abercrombie & Fitch Inc. (NYSE: ANF) is down -13.7% at $39.21 after posting a new 52-week low of $38.26 earlier today. The teen retailer badly missed estimates last night.

Stay tuned for Wednesday. St. Louis Fed President James Bullard is giving a speech. We have also noted the following events on the schedule (all times Eastern):

• 8:30 a.m. – New claims for unemployment benefits
• 10:00 a.m. – Philadelphia Fed manufacturing survey
• 10:00 a.m. – E-commerce retail sales
• 10:00 a.m. – Leading indicators
• 10:30 a.m. – EIA weekly natural gas storage report
• 4:30 p.m. – Fed balance sheet and money supply

Your email address

subscribe

terms and conditions

Paul Ausick

The unofficial closing bells put the DJIA down more than 63 points to 12,632.08 (-0.50%), the NASDAQ fell nearly 9 points (-0.30%) to 2,893.76, and the S&P 500 fell -0.57% or nearly 8 points to 1,330.66.

There were several analyst upgrades and downgrades today, including Amazon.com Inc. (NASDAQ: AMZN) raised to ‘outperform’ at Credit Suisse; Applied Materials Inc. (NASDAQ: AMAT) cut to ‘hold’ at Needham; Colgate-Palmolive Co. (NYSE: CL) raised to ‘buy’ at Argus; McDonald’s Corp. (NYSE: MCD) cut to ‘neutral’ at Cowen; and Phillips 66 (NYSE: PSX) started as ‘buy’ at Citigroup.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Renren Inc. (NYSE: RENN) is up 5.5% at $5.79; Agilent Technologies Inc. (NYSE: A) is up XX% at $XX; A123 Systems Inc. (NASDAQ: AONE) is up 4.5% at $40.63; Arctic Cat Inc. (NASDAQ: ACAT) is down -10.6% at $37.84; Dick’s Sporting Goods Inc. (NYSE: DKS) is up 6.8% at $50.45 after posting a new 52-week high of $51.65 earlier today; Saks Inc. (NYSE: SKS) is down -0.5% at $10.00; TJX Companies Inc. (NYSE: TJX) is up 7.1% at $42.50; Valspar Corp. (NYSE: VAL) is down -6.7% at $46.45, and The Home Depot Inc. (NYSE: HD) is down -2.6% at $48.61 (more coverage here).

On Wednesday we are scheduled to get earnings from 8×8 Inc. (NASDAQ: EGHT), Abercrombie & Fitch Co. (NYSE: ANF), Chico’s FAS Inc. (NYSE: CHS), Deere & Co. (NYSE: DE), Jack in the Box Inc. (NASDAQ: JACK), and Target Corp. (NYSE: TGT).

Other standouts from today include the following stocks:

Facebook Inc. (soon to be NASDAQ: FB) raised its IPO price range from from $28-$35 to $34-$38. It is possible the world will regain its balance following the company’s IPO, expected for Friday. But maybe not.

Patriot Coal Corp. (NYSE: PCX) is down -18.8% at $3.92 after posting a new 52-week low of $3.91 earlier today. The coal miner lowered shipment and price expectations this morning. More coverage here.

JPMorgan Chase & Co. (NYSE: JPM) is up 1.7% at $36.39. CEO Jamie Dimon dodged a bullet at today’s shareholder meeting and kept both his jobs.

Stay tuned for Wednesday. St. Louis Fed President James Bullard is giving a speech. We have also noted the following events on the schedule (all times Eastern):

• 7:00 a.m. – Mortgage Bankers Association purchase applications
• 8:30 a.m. – Housing starts
• 10:30 a.m. – EIA weekly petroleum status report
• 2:00 p.m. – FOMC minutes released

Your email address

subscribe

terms and conditions

Paul Ausick

The unofficial closing bells put the DJIA down almost 27 points to 12,938.75 (-0.21%), the NASDAQ fell more than 15 points (-0.52%) to 2,933.17, and the S&P 500 fell -0.33% or nearly 5 points to 1,357.66.

There were several analyst upgrades and downgrades today, including Apple Inc. (NASDAQ: AAPL) reiterated as ‘outperform’ and target price lifted to $600 at Credit Suisse; Dell Inc. (NASDAQ: DELL) cut to ‘neutral’ at Citigroup and cut to ‘hold’ at Needham; The Mosaic Co. (NYSE: MOS) raised to ‘buy’ at Canaccord Genuity; Gilead Sciences Inc. (NASDAQ: GILD) cut to ‘market perform’ at Bernstein; and Dendreon Corp. (NASDAQ: DNDN) started as ‘neutral’ at Citigroup.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Basic Energy Services Inc. (NYSE: BAS) is up 0.15% at $19.90; Community Health Systems Inc. (NYSE: CYH) is up 14.3% at $23.61; Grand Canyon Education Inc. (NASDAQ: LOPE) is down -0.95% at $17.67; Range Resources Inc. (NYSE: RRC) is up 3.4% at $66.47; Central European Media Enterprises Ltd. (NASDAQ: CETV) is down -18.5% at $6.93; Chico’s FAS Inc. (NYSE: CHS) is up 16.9% at $14.97; Dollar Tree Inc. (NASDAQ: DLTR) is down -0.76% at $87.34; Garmin Ltd. (NASDAQ: GRMN) is up 9.2% at $48.81 after posting a new 52-week high of $49.93 (more coverage here); Novagold Resources Inc. (AMEX: NG) is flat at $8.75; R.R. Donnelley & Sons Co. (NYSE: RRD) is down -1.8% at $13.00; and Toll Brothers Inc. (NYSE: TOL) is down -4.8% at $22.56 (more coverage here).

Other standouts from today include the following stocks:

HealthStream Inc. (NASDAQ: HSTM) is up nearly 34% at $23.18 after posting a new all-time high of $23.19 earlier today. The Internet-based health learning company beat both EPS and revenue expectations in its most recent quarter.

Sourcefire Inc. (NASDAQ: FIRE) is up nearly 27% at $45.34 after posting a new all-time high of $45.50 earlier today. The Internet security provider handily beat earnings and revenue expectations last night.

Threshold Pharmaceuticals Inc. (NASDAQ: THLD) is up nearly 20% at $6.0. The pharmaceutical maker yesterday announced positive results for its pancreatic cancer treatment.

Newfield Exploration Co. (NYSE: NFX) is down more than -12% at $37.06. The independent oil & gas company missed EPS and revenue estimates last night.

Brightpoint Inc. (NASDAQ: CELL) is down more than -11% at $8.89. The mobile-phone wholesaler has cut its outlook for 2012.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

• 8:30 a.m. – New US claims for unemployment benefits
• 10:00 a.m. – Federal Housing Finance Agency (FHFA) house price index
• 10:30 a.m. – EIA weekly natural gas storage report
• 11:00 a.m. – EIA weekly petroleum status report
• 11:00 a.m. – Kansas City Fed manufacturing index
• 1:00 p.m. – 7-year note auction
• 4:30 p.m. – Federal Reserve balance sheet and money supply

Your email address

subscribe

terms and conditions

Paul Ausick

Included in the previews are some pricing data and color on each preview.  Estimates are the consensus targets from Thomson Reuters.

Analog Devices Inc. (NYSE: ADI) is now up 35% from last year’s low and within about 6% of a 52-week high after many of the chip names have had phenomenal 2012 moves.  Estimates are $0.48 EPS on $662.3 million in sales.

Angie’s List Inc. (NASDAQ: ANGI) is set to see its first public earnings release.  We have always wondered about its lack of earnings as sort of unacceptable, but so far Wall Street has stayed by it.  Estimates are -$0.11 EPS on $25.38 million in sales.  At $15.20, the post-IPO range is $10.77 to $18.75.

Boston Beer Co. (NYSE: SAM) remains at a premium value on its earnings at 24-times expected 2012 earnings estimates. Estimates are $1.12 EPS and $131.6 million in sales.

Chico’s FAS Inc. (NYSE: CHS) is still trying to get its ship back in order.  Estimates are $0.11 EPS and $546.66 million in sales.

Clean Harbors Inc. (NYSE: CLH) has remained highly valued and it has recently split its stock after an incredible share move in recent years.  Estimates are $0.48 EPS and $506.04 million in sales.      4Q   0.49

Express Scripts Inc. (NASDAQ: ESRX) is still pending a review by the FTC in its attempt to acquire Medco.  Many feel that the deal could be blocked.  Earnings estimates are $0.85 EPS on sales of $11.6 billion.

Fluor Corp. (NYSE: FLR) still remains well off of its highs and is still at a premium at 16.5-times expected 2012 earnings for this infrastructure design leader.  Estimates are $0.82 EPS and $6.38 billion in sales.

Garmin Ltd. (NASDAQ: GRMN) is expected to report $0.66 EPS on $769.9 million in sales.  The turnaround continues here as it continues to move away from being dependent upon Garmin sales for in-car navigation.

Hewlett-Packard Co. (NYSE: HPQ) is still just getting a plan underway for its Meg Whitman-lead turnaround.  Estimates are $0.87 EPS on $30.7 billion in sales.

Limited Brands Inc. (NYSE: LTD) is expected to post $1.46 EPS and $3.47 billion in sales.

Pan American Silver Corporation (NASDAQ: PAAS) is expected to report earnings of $0.51 EPS on $229.59 million in revenues.  We will be looking for its cost per ounce of production in silver.

SINA Corp. (NASDAQ: SINA) is expected to report $0.21 EPS on $129.34 million in sales. This stock remains down by more than half from last-year’s highs.

TJX Companies, Inc. (NYSE: TJX) remains at a premium valuation and shares hit a new all-time high on Tuesday.  Estimates are $0.62 EPS on $6.72 billion in sales.

Toll Brothers Inc. (NYSE: TOL) is expected to report $0.02 EPS on $360.8 million in sales.  Home builders are profitable again, often from ‘other’ activities.  Shares just hit a new 52-week high on Tuesday.

Zale Corporation (NYSE: ZLC) is expected to post its “money quarter” that includes the holiday sales.  Estimates are $0.77 EPS on $657.38 million in revenue.  Keep in mind that this company is still expected to lose money for its full year ending in July.

Your email address

subscribe

terms and conditions

JON C. OGG

Founded in 1983 as a small boutique selling Mexican folk art and cotton sweaters on Sanibel Island in Florida, Chico’s now operates more than 1,200 outlets and boutiques throughout the U.S., selling casual-to-dressy apparel and related accessories under the Chico’s brand, White House/Black Market and Soma Intimates names, catering mostly to women over the age of 35.

Although net sales for the third quarter ended October 29 increased 11.5% year-over-year to $539 million, the Fort Myers, Fla.-based retailer posted quarterly earnings of 16 cents per share, lower than the consensus analyst estimate of 20 cents. Absent traffic, the company was forced to increase promotional activities and offer aggressive discounts to move merchandise, especially at its namesake stores. Gross margin fell 100 basis points to 56% and inventory increased 38% to $247 million.

Though gross margin is forecast to fall 100 to 200 basis points in the fourth quarter (reflecting a need to push-out end-of-year merchandise through discounting), management insists the decline is not related to execution problems. Chief executive officer David Dyer pointed out on the third-quarter 2011 conference call with analysts that the White House and Soma brands “delivered record sales and margins in the third quarter, thanks to a more fashionable mix of lingerie, dresses and beauty.”

“It’s the economy, stupid!” ~ Democratic strategist James Carville

All four brands — from dinner party fashions at Boston Proper to pajamas and “Vanishing Back” bras available at Soma Intimates — are resonating with shoppers, said chief financial officer Pamela Knous on the earnings call. “And I am proud to say,” declared Knous, that the 11.5% increase in sales “represents the tenth consecutive quarter of positive comparables.”

What Knous did not say was that consolidated sales comparables grew only 3.7%. Her double-digit growth comment reflected increases from new store openings — not actual organic growth at locations open more than one year!

Even more troubling, although new traffic was up for the combined Chicos and Soma Intimates brands, which accounted for 66% of quarterly revenue, comparables grew only 0.6%, compared to sales growth of 3.6% last year. Knous said the slowdown reflected the Chico’s customer’s “cautious purchasing behavior in light of continuing uncertain economic conditions.”

“When I see a bird that walks like a duck and swims like a duck and quacks like a duck, I call that bird a duck.” ~ American poet James Whitcomb Riley (1849 – 1916)

Notwithstanding, the Chico’s namesake brand, average dollar sales and transaction counts are supposed to be up across all other brands, according to management. Why, then, will the company not break out segment profit and loss (P&L) statements?

Looking to extend its customer’s experience to intimate apparel, a $13.5 billion market (led by Victoria’s Secret’s commanding 25% share), Chico’s has grown the Soma label from 10 stores in 2005 to more than 200. Given the company’s ambitions are no longer “a secret,” why should the brand’s contribution to P&L still be considered such — unless discount pricing is driving sales growth — and eating into profits?

Management contends that there is space for another specialty lingerie brand. Though sales and profits are sizzling these days at industry bellwether Victoria’s Secret, owned by Limited Brands (NYSE: LTD), the playing field is not level for an upstart like Chico’s: Soma Intimates does not have the real estate. With just one-fifth as many stores, the company cannot similarly leverage product campaigns (do not expect an NBC runway show in primetime anytime soon). Additionally, deep-discounters like Wal-Mart Stores (NYSE: WMT) and Kohls (NYSE: KSS), with respective market shares of 17% and 8%, are battling for the budget-constrained pocketbooks of shoppers (looking for bargains) too. Ergo, Chico’s promulgations of full pricing and fashion parading hand-in-hand at Soma Intimates, in my opinion, is just fantasy talk.

On the earnings call, Nomura retail analyst Paul Lejuez was ignored when he specifically asked Dyer or Knous to detail the P&L impact of Soma Intimates on quarterly income. The company did not return my call seeking comment, too.

Troubling Trends Ahead

There are stormy headwinds blowing toward Chico’s, which management — whether deliberately or blithely — refuses to address:

• “Excluding $3.5 million of non-recurring, after-tax Boston Proper acquisition and integration cost, earnings per diluted share were $0.18 compared to $0.16 last year, a 13% increase,” said Knous. “Our best third quarter earnings per share results since 2006.” If this is Chicos’ best — I’d hate to see “average” performance. The quality of the company’s earnings is suspect. Actual net income year-on-year fell 8.2% to $26.46 million, according to regulatory filings. Share-net income received an artificial boost because actual (weighted) share count outstanding fell by 10 million in the last year due to open-market stock repurchases.
• In total, the company should exit the year at 1,250 stores, an increase of about 8% in square footage. However, in-store inventory is up some 17% per square foot, which suggests a continued reliance on aggressive promotions to push out seasonal merchandise — and a delay in margin turnarounds.
• Further evidence of a disconnect with female shoppers is found in days inventory outstanding (DIO), a performance metric that measures how long it takes inventory to be replaced on store shelves. In the third quarter, DIO rose year-over-year from 73.5 days to 81 days. Part of the cash conversion cycle, an increase in DIO whispers a liquidity crisis could be in the wind, as Chico’s inventory accounts for almost 46% of current assets (of $543.5 million).

“The best offense is having the right product for the customers.” ~ Chicos CEO David Dyer

Management believes that Chico’s has sufficient capital — cash flow from operations and existing cash and marketable securities balances — needed for the 100 (plus) new store openings in 2012 ($100 – 120 million), plus continued investment associated with the Soma brand, store remodel/expansions and cash required for inventory levels associated with this growth. Additionally, the company has no long-term debt and, if necessary, an untapped bank credit-line totaling $70 million.

Cash and equivalents totaling $195 million plus year-to-date operations that threw off $181 million suggest that liquidity should be sufficient to weather more of the same soft retail environment predicted for 2012 (including continued pressure on margins from promotional activities). That said, the company is spending money like a drunken sailor: $212 million acquisition of Boston Proper last fall, $70 million in dividend payouts, $176 million stock repurchases of 13.7 million shares (since August 2010) and the just-announced $200 million new stock buyback program.

Strong quarterly results at Limited Brands and Ann Inc (NYSE: ANN), parent company of Ann Taylor and LOFT brands, demonstrate that even in a weak economy customers will pay “full-price” for the right products. However, in my opinion, the company has overestimated its own pricing power. Consequently, if trouble follows the company into 2013, build-outs planned for Boston Proper and Soma could grind to a halt. As the share price of Chico’s FAS is down some 36% from its 52-week high of $16.60, consensus among investors would be to agree — and flee.

David J Phillips

Bank of America Corporation (NYSE: BAC) is actually indicated higher this morning by over 1% at $5.57 despite reports that it has been warned by regulators to bolster its financial position.

Brocade Communications Systems Inc. (NASDAQ: BRCD) may have turned in a net loss after items and options, but non-GAAP earnings were $0.16 EPS and $550 million versus estimates of $0.14 EPS and $527.4 million.  Shares were up 6% last night and the $4.48 close of Monday is still up 6.7% at $4.78 on Tuesday morning. 

Campbell Soup Company (NYSE: CPB) reported that normalized earnings were down nominally from a year earlier at $0.82 EPS and that sales fell 1% to $2.16 billion; estimates were $0.79 EPS on $2.2 billion in sales.

Chico’s FAS, Inc. (NYSE: CHS) reported that its third-quarter earnings was $0.16 EPS but after $0.02 in acquisition costs, while estimates were $0.20 EPS.  Sales were $538.5 million versus estimates of $548.5 million. Same-store sales in the quarter rose 3.7% versus 5% or more expected and it turned in another $0.05 dividend for a 1.8% or so dividend yield.

Focus Media Holding Ltd. (NASDAQ: FMCN) was crushed yesterday with roughly a 40% drop after short seller Muddy Waters raised concerns about the company.  The company has denied the allegations and said that the information provided was misrepresented.  Shares are trading up 12% at $17.40 so far this morning, but this is a fluid situation and the “Muddy Waters” stocks tend to remain highly volatile for a period after a report of this sort is issued.

Market Vectors Egypt Index ETF (NYSE: EGPT) has not traded but trading on the Egyptian Exchange was halted after a 4.5% broad market drop due to continues protests and violence in Cairo after reports of dozens of deaths.

Harman International (NYSE: HAR) had its CEO featured on a Jim Cramer interview last night and Cramer said it is now getting to be a bargain at barely 10-times earnings with 20% growth possibilities.  Zacks also named it the value stock of the day this morning. 

Hewlett-Packard Co. (NYSE: HPQ) is now down 1% at $26.59 despite having been up almost 4% after earnings.  Some wanted a better path to a return of growth but frankly the report and even the lower guidance should have been enough to quell at least some fears about the company.

Jack in the Box Inc. (NASDAQ: JACK) was up 4% in the after-hours on Monday after beating earnings estimates with higher same-store sales. Volume is very light and the stock is only indicated up 1% so far in early bird trading.

Medtronic Inc. (NYSE: MDT) has reported earnings of $0.84 EPS adjusted on $4.13 billion in sales; estimates were $0.82 EPS and $4.1 billion in sales. The medical devices giant has guided its fiscal year (April-2012) to $3.43 to $3.50 EPS versus estimates of $3.44 EPS.

Netflix, Inc. (NASDAQ: NFLX) had its secondary and placement offering announcement last night and now shares are getting hit all over again after a SELL rating was slapped on the stock.  Netflix is trading down 5.2% at $70.60 in active trading.

Shanda Interactive Entertainment Ltd. (NASDAQ: SNDA) is getting acquired after receiving a “going private” letter a month ago.  Monday’s ADS close in New York was $39.39 and the buyout price $41.35 per ADS.

JON C. OGG

Big Lots Inc. (NYSE: BIG) Raised to Outperform at Wedbush.
Chico’s FAS Inc. (NYSE: CHS) Cut to Neutral at Citigroup.
Delta Air Lines (NYSE: DAL) Raised to Outperform as Bull of the Day at Zacks.
Energy Recovery Inc. (NASDAQ: ERII) Started as Neutral at Credit Suisse.
PPG Industries, Inc. (NYSE: PPG) named as Value stock of the Day at Zacks.
Plexus Corporation (NASDAQ: PLXS) named Bear of the Day at Zacks.
Randgold Resources Limited (NASDAQ: GOLD) Cut to Hold at Canaccord Genuity.
Royal Gold, Inc. (NASDAQ: RGLD) Cut to Sector Perform at National Bank.
SandRidge Energy, Inc. (NYSE: SD) Cut to Hold at Stifel Nicolaus.
Stanley Black & Decker Inc. (NYSE: SWK) Raised to Buy at Argus.
SunPower Corporation (NASDAQ: SPWRA) Cut to Underperform at Macquarie.
Transocean Ltd. (NYSE: RIG) Cut to Underperform at Macquarie.
Trina Solar Limited (NYSE: TSL) Cut to Neutral at Macquarie.
Vical Inc. (NASDAQ: VICL) Started as Outperform with $7 target at Credit Suisse.
VIVUS, Inc. (NASDAQ: VVUS) Started as Outperform with $15 target at Credit Suisse.
YRC Worldwide Inc. (NASDAQ: YRCW) Raised to Hold fro Sell at Stifel Nicolaus.

Your email address

subscribe

terms and conditions

JON C. OGG

Alcoa, Inc. (NYSE: AA) Cut to Hold at Deutsche Bank.
Amazon.com Inc. (NASDAQ: AMZN) Raised to Buy at Stifel Nicolaus.
Athenahealth, Inc. (NASDAQ: ATHN) Started as Outperform as Bull of the Day at Zacks.
Chico’s FAS Inc. (NYSE: CHS) Cut to Hold at KeyBanc.
CF Industries Holdings, Inc. (NYSE: CF) named value stock of the day at Zacks.
First Solar Inc. (NASDAQ: FSLR) Cut target to $80 from $135 at Credit Suisse.
Gap Inc. (NYSE: GPS) Cut to Hold at KeyBanc.
Goldcorp Inc. (NYSE: GG) Raised to Buy at Deutsche Bank.
LinkedIn Corporation (NYSE: LNKD) Started as Hold at Citigroup.
NetApp, Inc. (NASDAQ: NTAP) Raised to Buy at Citigroup.
Priceline.com Incorporated (NASDAQ: PCLN) Raised to Overweight at Morgan Stanley.
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) Started as Buy with $24 target at BofA/ML.
Sears Holding Corporation (NASDAQ: SHLD) maintained Underperform as Bear of the Day at Zacks.
State Street Corporation (NYSE: STT) Cut to Hold at Jefferies.
United Continental Holdings, Inc. (NYSE: UAL) Cut to Hold at Citigroup.

Here is a detailed summary list of the top analyst calls from Wall Street last week.  Many were cautious.

Your email address

subscribe

terms and conditions

JON C. OGG

We have compiled the news summaries and the moves on each.

Analog Devices, Inc. (NYSE: ADI) is lower after reporting a rise in third quarter profits but warning that Q4 will be weak due to global uncertainty.  Shares closed at $31.35 and shares are down about 2% at $30.78.

Blue Coat Systems Inc. (NASDAQ: BCSI) is getting crushed after it is forecasting a loss or gain of -$0.04 to $0.04 EPS versus estimates of $0.20 and higher.  It has also been downgraded or seen target cuts at many brokerage firms in research calls.  Shares are down 24% at $13.30, under the 52-week low of $14.91 and versus a $17.68 close yesterday.

Chico’s FAS Inc. (NYSE: CHS) is up after reporting a 42% rise in earnings and word that it is making an acquisition of a retailer in Florida.  Shares are up over 7% at $13.50 in pre-market trading.

Dell Inc. (NASDAQ: DELL) beat on the bottom line but turned in light revenues and guidance was light on sales as well.  Shares are down close to 6% at $14.85 or so this morning on active volume.

Eastman Kodak Co. (NYSE: EK) may be worth more in a breakup according to Bloomberg as it discusses $3 billion value for the patents alone.  Shares are indicated up more than 10% above $2.50 this morning.

First Solar, Inc. (NASDAQ: FSLR) is down on news that one of its top executives named Jens Meyerhoff is leaving the company after September 30.  Shares are down about 3% at $101.75 this morning.

NYSE Euronext, Inc. (NYSE: NYX) is getting a bit of a bounce of 2.3% to $27.15 after a substantial loss on Tuesday after Merkel and Sarkozy proposed a financial transaction tax of some sort. Shares were as high as $28.52 yesterday and closed down at $26.54.

Photronics Inc. (NASDAQ: PLAB), which manufactures photomasks for the chip sector, managed to post earnings gains and shares are responding handily.  Shares closed at $5.62 and the pre-market trading is up 9% at $6.13 on thin volume.

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) is down on news that the FDA is extending its review of EYLEA (aflibercept injection) by three months.  Shares are down almost 5% at $54.68 in pre-market trading.

Staples, Inc. (NASDAQ: SPLS) is getting a big bounce after the office supplies retailer beat earnings and managed to forecast solid results ahead too.  This one has been sold off big from highs and shares are up about 8.5% at $15.43 on active pre-market volume.

Sunrise Senior Living, Inc. (NYSE: SRZ) popped last night and is indicated higher this morning after Jim Cramer on CNBC’s MAD MONEY said that it is a small and under-followed speculative company that could potentially make homegamers a lot of money.  Shares closed at $6.84 and the stock is indicated up around $7.25 this morning.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Drug store forecasts are down 20 basis-points to 2.7% due to Walgreen Co. (NYSE: WAG).  Retail Metrics sees slightly higher expectations for Limited Brands, Inc. (NYSE: LTD), The TJX Companies, Inc. (NYSE: TJX), and even for Ross Stores Inc. (NASDAQ: ROST).  Gap Inc. (NYSE: GPS) comparable projections moved lower.  Expectations for Hot Topic moved up helping the teen group tick higher.

Retail Metrics did highlight some of the extreme gains expected, in order, as follows: Lululemon Athletica Inc. (NASDAQ: LULU) at +16.5%, PriceSmart Inc. (NASDAQ: PSMT) at +16.0%, Body Central Corp. (NASDAQ: BODY) at +11.8%, Buckle Inc. (NYSE: BKE) at 11.0%, Chico’s FAS Inc. (NYSE: CHS) at +10.4%, and Tiffany & Co. (NYSE: TIF) at +10.2%.  These expected gains are not helping many of these stocks on Tuesday, but double-digit same-store sales growth is likely going to be more than impressive in this environment.  We noted a drop expected in Gap Inc. (NYSE: GPS) and that is now expected to come in at -0.8% in same-store sales growth.

What is driving the gains despite a slowing economy? Traffic levels at stores have remained solid, higher-end retailers are faring better, 4th of July weekend was a good start for the month, hot weather favored mall traffic, gas prices are down, and more.  Higher unemployment, weaker consumer confidence, apparel price hikes, and weaker housing data are all potential drags per the Retail Metrics data.

Many retail same-store sales do sometimes come out much different than expected and the reasons can literally be from a discrepancy of one day’s reporting.  It is good to see that growth is still being seen somewhere, and more important is that the growth is expected to remain in place despite weak data being seen on most other fronts.

As a reminder, these figures will set the tone for the retail earnings reports that will kick off in the next two weeks as retailers have a one-month lag compared to most other companies in reporting earnings.

JON C. OGG