Fitbit’s (FIT) Stellar Holiday Performance was Tarnished by Missteps – My Thoughts Moving Forward

Fitbit (NYSE: FIT) almost filled in all my checks for a perfect earnings report that could have been a catalyst for a short squeeze and sharp upside rise Tuesday. However, its stellar holiday quarter goes to waste due to surprising quarterly guidance that diverged significantly from analysts’ expectations. While it all works out by year end to conservative full-year figures that meet analysts’ annual estimates, it raises uncertainty and is evidence of an unseasoned management team. Unfortunately, the company misses an opportunity to force a vibrant short squeeze to fuel restoration of shareholder value to stakeholders deserving of it. Still, the deeply discounted on a PEG basis, oversold stock with a heavy short interest could still see a healthy upside rise by week’s end or even day’s end Tuesday, as current market dynamics have been serving deeply oversold stocks. Over the longer term, it’ll take a quarter or two for the company to refashion its image with investors. It’s important to note that there is hope; Facebook (NYSE: FB) also had missteps in its early post IPO days, and it managed to recover nicely. The company has potential but it cannot afford to miss a beat when competing against Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT). See my full report on Fitbit here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article should interest Apple (Nasdaq: AAPL), Garmin (Nasdaq: GRMN), Microsoft (Nasdaq: MSFT), Google (Nasdaq: GOOG, Nasdaq: GOOGL), Amazon.com (Nasdaq: AMZN), Best Buy (NYSE: BBY), SPDR S&P 600 Small Cap ETF (NYSE: SLY), Vanguard Small Cap ETF (NYSE: VB), Vanguard Small-Cap Growth ETF (NYSE: VBK), Vanguard Small-Cap Value ETF (NYSE: VBR), Vanguard S&P Small Cap 600 Index ETF (NYSE: VIOO), Russell Small Cap Low P/E ETF (Nasdaq: SCLP), PowerShares Zacks Micro Cap ETF (NYSE: PZI) and Wilshire Micro-Cap ETF (NYSE: WMCR).

Fitbit EPS Pivotal for Battle Ground Stock (NYSE: FIT)

FIT Chart at Fidelity.com

Fitbit (NYSE: FIT) reports earnings for its fourth quarter after the close of trading Monday. The stock has been sold down significantly since topping out at $51.90 intraday on August 5, 2015. Several issues have factored into that, including a change in the overall investment environment working against emerging growth stocks, increasing competition, the expiration of share lockup post IPO, critical reviews of a new product, and a big build of short interest. Nevertheless, signs point to a strong holiday season for the company. Thus, I believe, and the whisper number and history indicate FIT should exceed analysts’ estimates this quarter significantly. Given the stock’s deeply discounted valuation to its growth outlook due to skepticism, and the excessive short interest in the stock, the earnings data could catalyze a strong move to the upside. However, investors will require evidence of good market share defense so far this year, and they will pay close attention to forward guidance and the conference call before they heed any call to buy. If the company is pressed on competition and the limits of its current product profile, it is not well-served. But if it can tangibly speak to expanded health care applications and interest and adoption by health care providers and insurers, the stock could soar. I have taken a modest long interest in the stock, as may aggressive investors understanding the risk, but I cannot yet recommend long-term investment in FIT generally to risk averse investors. See my full report on Fitbit (NYSE: FIT) here.

Security	06-18-15 to 02-19-16
Fitbit (NYSE: FIT)	-47%
Vanguard Total Stock Market (NYSE: VTI)	-11%
iShares Russell 2000 (NYSE: IWM)	-21%
SPDR 600 Small Cap Growth (NYSE: SLYG)	-14%
Technology Select Sector SPDR (NYSE: XLK)	-4.3%
GoPro (Nasdaq: GPRO)	-79%

Disclosure: Kaminis is long FIT. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article also interests Garmin (Nasdaq: GRMN), Microsoft (Nasdaq: MSFT), Apple (Nasdaq: AAPL), GoPro (Nasdaq: GPRO), Google (Nasdaq: GOOG), Facebook (NYSE: FB), Best Buy (NYSE: BBY), Amazon (Nasdaq: AMZN). .

Don’t Let Apple, Microsoft & IBM Fool Ya

I know what you’re thinking. We finally got Greece out of our hair and China concerns somewhat quelled, and now we have these unexpected issues. To everyone’s surprise, high profile earnings disappointments are now driving us into the ditch. It started with IBM’s (NYSE: IBM) big miss, but Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) clearly took the impact to the next level. However, don’t be fooled by the high profile misses, because most of the companies in the S&P 500 Index are actually beating their numbers. Eventually, that will be the story that the market picks up on and stocks stand to benefit, through earnings season anyway. See my full report here.

Stock Sector	Last 2 Days	YTD
SPDR S&P 500 (NYSE: SPY)	-0.6%	+3.8%
SPDR Dow Jones (NYSE: DIA)	-1.3%	+1.4%
PowerShares QQQ (Nasdaq: QQQ)	-1.2%	+9.9%
iShares Russell 2000 (NYSE: IWM)	-0.1%	+5.8%
Vanguard Total Stock Market (NYSE: VTI)	-0.6%	+4.1%
iPath S&P 500 VIX (NYSE: VXX)	-1.4%	-48%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Buffalo Wild Wings (BWLD) Should Benefit from NCAA Football Playoffs

When Buffalo Wild Wings (Nasdaq: BWLD) reports earnings this evening, I expect it will talk about its current quarter benefit from the new NCAA Division 1 Football Playoffs and Championship Game. The event is new, and so what once drew viewers for 1 game, just drew more viewers for 3 games. That means this quarter (Q1) will have an easy comp against the prior year quarter when it’s reported in a few months. I anticipate that the college football championship game drew more viewers this year than in any other year, and that the addition of the extra games and the hype about the finale drove foot traffic into Buffalo Wild Wings and will support its Q1 due for report in 3 months. BWLD was cheap before its last quarterly report, but has risen significantly into this report. I like the stock long-term, but am wary of playing around with it ahead of earnings this quarter due to its position heading into it. That said, I wouldn’t sell it if I owned it, and would buy more if it drifted. I expect it to close toward $190 tomorrow, up $10, taking it back toward its high. The PEG ratio for the stock is 1.5X based on a P/E of 30X this year’s consensus EPS estimate and the 20% long-term growth expected. Growth should exceed 20% this year and estimates should see revision higher. BWLD is a buy in my opinion, but I wouldn’t buy options ahead of the report, only stock, and I would buy this stock on weakness thereafter.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Earnings Warnings & EPS Season Threatens Shares

Alcoa (NYSE: AA) officially started earnings season Tuesday afternoon, but earnings warning season is at full stride. I see stocks at risk broadly speaking, as it is put up or shut up time now. With the SPDR S&P 500 (NYSE: SPY) up 16.7% year-to-date after adjustment for dividends and splits, and given that earnings estimates are moving in the opposite direction, the pressure is weighing against stocks to prove their worth. Of course, valuations might still benefit from improved investor expectations which could coincide with a Romney rise in the election polls. However, the weight of earnings and EPS warnings should prove meaningful.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Earnings Warnings & EPS Season

Tensions are high for good reason, including high profile warnings already booked by the likes of Caterpillar (NYSE: CAT), McDonald’s (NYSE: MCD), Applied Materials (Nasdaq: AMAT), FedEx (NYSE: FDX), Hewlett-Packard (NYSE: HPQ) and Express (Nasdaq: EXPR). Indeed, concern about Apple’s (Nasdaq: AAPL) outlook after an analyst’s downgrade drove it down 2.3% intraday Tuesday before it recovered to close just 0.4% underwater. The SPY collapsed a full point Tuesday as tensions rose ahead of reports from Alcoa and Yum! Brands (NYSE: YUM). The week’s reporting schedule is light overall, but it’ll close with high profile (and impact) news from J.P. Morgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC).

Earnings expectations do not match up well against stock performance. According to a Zack’s report, total earnings are expected to decline by 3.2%, marking the first drop since 2009. You recall 2009, when the market reached rock bottom. When I was an analyst, I tracked analysts’ expectations and was not surprised to find that they really were late in catching up with reality. They tended to follow results, even quarter to quarter, and so I’m not surprised to discover that expectations for the fourth quarter are still for EPS growth of 7.9%. I expect that after this quarter’s reports, growth for Q4 will be severely altered.

Much of the more recent earnings growth has been on cost cuts, as revenues have proven soft. As you might expect, there’s only so far you can cut and continue to function somewhat efficiently. It looks to me like the fat is all gone now, and only muscle attrition can follow, or EPS attrition. Another issue has been stealth price increases, meant to keep customers from noticing. I plan to report on some of the creative ways companies have passed off price increases to their customers in a near-term article at the blog and at Seeking Alpha, so stay tuned.

The SPY is down fractionally in morning trading Wednesday, after mixed news from Alcoa (-3.8%), Yum! Brands (+8.9%), Chevron (NYSE: CVX) (-3.6%) and Costco (Nasdaq: COST) (+4.7%) on their individual earnings reports. As the season continues to test stocks, I expect pressure to increasingly weigh against them. Though, as we pass warnings season, the outperformers will increase in number and begin to balance the message against the companies reporting bad news or outlooks. Still, in my opinion, on net, earnings season threatens stocks this quarter.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

eBay a Short-Term Sell and Long-Term Buy

Shares of eBay (Nasdaq: EBAY) fell roughly 5% after hours Wednesday, following the company’s third quarter results. eBay’s earnings per share were in line with the analysts’ consensus forecast. However, just meeting expectations is not good enough for a company that has a consistent record of beating the Street. Yahoo Finance indicates eBay exceeded expectations for at least the last four consecutive quarters heading into Q3. Furthermore, the company’s guidance for the coming quarter and the full year were not impressive when compared with the consensus of analysts’ views for the shares. Thus, eBay (Nasdaq: EBAY) joins Apple (Nasdaq: AAPL), IBM (NYSE: IBM), VMware (NYSE: VMW) and Cree (Nasdaq: CREE) in resetting investor expectations and equity valuations.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers include: Nasdaq: AAPL, Nasdaq: CREE, NYSE: IBM, NYSE: VMW, NYSE: ATV, Nasdaq: AMZN, OTC: ARIS.OB, Nasdaq: BIDZ, Nasdaq: DLIA, Nasdaq: DANG, Nasdaq: EBAY, Nasdaq: GAIA, Nasdaq: IACI, Nasdaq: LINTA, Nasdaq: OSTK, Nasdaq: PCCC, Nasdaq: STMP, Nasdaq: VVTV and Nasdaq: VITC.

eBay a Short-Term Sell and Long-Term Buy

eBay beat the Street on the top line, making $2.97 billion against expectations for $2.91 billion, based on Factset data. eBay reported a 32% increase in revenue against the prior year quarter, attributing its growth to each of its business segments. However, investments made to assimilate acquisitions and market the brand, and some difficulty with the learning curve on mobile business led it to only earn the $0.48 per share (on a non-GAAP basis) that analysts were looking for. According to Yahoo Finance, over the last four quarters, eBay beat estimates by between 2% and 11%. Thus, expectations for the same were likely built into the company’s valuation, and so were squeezed out of it on Wednesday evening. However, by 8:00 PM ET, and after the conference call concluded, the stock had mitigated its decline to minus 4%.

The company’s Payments business generated a 32% net revenue increase, to $1.107 billion. Within Payments, its merchant services business grew sharply in Q3, with net total payment volume rising 36%. eBay’s signature Marketplaces operations generated a 17% net revenue rise, to $1.653 billion. Within this segment, its international gross merchandise volume exceeded the rate of growth in domestic volume, growing 18% to $9.078 billion. The company’s GSI business, the operations just acquired in Q2, generated $203 million in net revenue.

A key problem with the quarter, as far as investors indicated Wednesday evening, was the contraction of the operating margin. Also, it looks as though the margin will hold stubbornly lower than the comparable period through Q4 as well. eBay’s net operating margin was squeezed to 25.3% on a non-GAAP basis in Q3, from 28.7% last year. Executives on the call attributed the contraction to acquisitions, including of GSI, and to business mix. Increasing business via mobile phones played at a higher cost than was expected to be the case. As the company moves up the learning curve, according to executives on the conference call, things should improve. The effective tax rate was also unfavorable against the prior year comparison, but the company’s executives focused their discussion on costs, and assurances of expected improvement over coming quarters. eBay also experienced a higher effective tax rate and completed its share repurchase program in the quarter.

When it came to guidance, eBay raised its outlook, but it seems not enough to satisfy investors. The company guided for a Q4 revenue range of between $3.2 billion and $3.35 billion, but the average of the two points was a bit short of the analysts’ consensus, which according to Yahoo Finance, sits at $3.3 billion. Also, the company’s fourth quarter EPS forecast for between $0.55 to $0.58 matches poorly against the consensus estimate for $0.58. eBay’s full year 2011 revenue forecast for between $11.5 billion and $11.6 billion sits well against the analysts’ consensus estimate for $11.51 billion. However, the company’s EPS forecast range of between $1.98 and $2.01, which is a penny higher than previously forecast, only encompasses the analysts’ consensus view for $2.00. Again, investors were likely looking for more.

Given eBay’s risk tied to the euro and its questionable forecast for an okay holiday season, which is certainly at risk, there appears to be good enough reason to temper short-term enthusiasm for the shares. However, eBay’s Paypal expansion to point of sale, with a beta test at play with one major retailer this Q4, could set this company’s growth into a higher gear in the next few years. According to Yahoo Finance, the company’s P/E/G ratio sits at 1.4, with growth forecast at 12.1% over the next five years. Thus, it seems to me that its trading range should not vary much in the near-term, with downside cushioned by its potential for greater long-term growth and its upside burdened by current issues. Therefore, while I’m cautious over the short-term, based on cost pressures, macroeconomic risks, and what I see as deteriorating broader market sentiment, I would put eBay in a category of names to look up again on weakness based on its opportunity in the emerging blockbuster point of sale business. Therefore, a hold rating would be in order for this stock today for most investors, and depending on your patience and investment style, I would label it a short-term avoid (weak sell) and long-term accumulate (weak buy).

This article should interest investors in Catalog and Mail Order House stocks including Acorn International (NYSE: ATV), Amazon.com (Nasdaq: AMZN), ARI Network Services (OTC: ARIS.OB), Bidz.com (Nasdaq: BIDZ), dELiA’s (Nasdaq: DLIA), E-Commerce China Dangdang (Nasdaq: DANG), eBay (Nasdaq: EBAY), Gaiam (Nasdaq: GAIA), IAC/ InterActiveCorp (Nasdaq: IACI), Liberty Interactive (Nasdaq: LINTA), Overstock.com (Nasdaq: OSTK), PC Connection (Nasdaq: PCCC), Stamps.com (Nasdaq: STMP), ValueVision Media (Nasdaq: VVTV) and Vitacost.com (Nasdaq: VITC).

The day's EPS reports came from American Express (NYSE: AXP), Xilinx (Nasdaq: XLNX), Abbott Laboratories (NYSE: ABT), Wynn Resorts (Nasdaq: WYNN), St. Jude Medical (NYSE: STJ) and U.S. Bancorp (NYSE: USB). Also look for news from 8X8 (Nasdaq: EGHT), Access National (Nasdaq: ANCX), Amphenol (NYSE: APH), AMR (NYSE: AMR), Amylin Pharmaceuticals (Nasdaq: AMLN), Apollo Group (Nasdaq: APOL), Astoria Fin’l (NYSE: AF), ATMI (Nasdaq: ATMI), Bank of New York Mellon (NYSE: BK), Banner (Nasdaq: BANR), BlackRock (NYSE: BLK), Buffalo Wild Wings (Nasdaq: BWLD), Cardinal Fin’l (Nasdaq: CFNL), Cathay General Bancorp (Nasdaq: CATY), Central Valley Community (Nasdaq: CVCY), Cheesecake Factory (Nasdaq: CAKE), Cirrus Logic (Nasdaq: CRUS), Cohen & Steers (NYSE: CNS), Cohu (Nasdaq: COHU), Comerica (NYSE: CMA), Community Trust Bancorp (Nasdaq: CTBI), Core Laboratories (NYSE: CLB), Covanta (NYSE: CVA), Cubist Pharmaceuticals (Nasdaq: CBST), CVB Financial (Nasdaq: CVBF), CYS Investments (NYSE: CYS), Datalink (Nasdaq: DTLK), DiamondRock Hospitality (NYSE: DRH), E*Trade Fin’l (Nasdaq: ETFC), East West Bancorp (Nasdaq: EWBC), eBay (Nasdaq: EBAY), Edwards Lifesciences (NYSE: EW), Exponent (Nasdaq: EXPO), F.N.B. Corp. (NYSE: FNB), Fidelity National Financial (NYSE: FNF), First Cash Financial (Nasdaq: FCFS), Forward Air (Nasdaq: FWRD), Freeport-McMoRan Copper & Gold (NYSE: FCX), Greenhill (NYSE: GHL), Gulfmark Offshore (NYSE: GLF), Heritage Crystal Clean (Nasdaq: HCCI), IDEX (NYSE: IEX), iParty (AMEX: IPT), Kinder Morgan Energy Partners (NYSE: KMP), Kinder Morgan Management (NYSE: KMR), Knight Capital (NYSE: KCG), Knoll (NYSE: KNL), Lam Research (Nasdaq: LRCX), LaSalle Hotel Properties (NYSE: LHO), Lufkin (Nasdaq: LUFK), M&T Bank (NYSE: MTB), Mastech (NYSE: MHH), Media General (NYSE: MEG), MKS Instruments (Nasdaq: MKSI), Morgan Stanley (NYSE: MS), New York Community Bancorp (NYSE: NYB), Noble (NYSE: NE), Northern Trust (Nasdaq: NTRS), NVE Corp (Nasdaq: NVEC), Piper Jaffray (NYSE: PJC), PNC Fin’l (NYSE: PNC), Polycom (Nasdaq: PLCM), Popular (Nasdaq: BPOP), Raymond James (NYSE: RJF), Riverbed Technology (Nasdaq: RVBD), Rockwood Holdings (NYSE: ROC), S.Y. Bancorp (Nasdaq: SYBT), SEI Investments (Nasdaq: SEIC), Select Comfort (Nasdaq: SCSS), Sensata Technologies (NYSE: ST), SLM (NYSE: SLM), Spartan Stores (Nasdaq: SPTN), Stepan (NYSE: SCL), Stryker (NYSE: SYK), Supervalu (NYSE: SVU), Swift Transportation (Nasdaq: SWFT), Temple Inland (NYSE: TIN), Texas Capital Bancshares (Nasdaq: TCBI), Textron (NYSE: TXT), Tractor Supply (Nasdaq: TSCO), Travelers (NYSE: TRV), Umpqua (Nasdaq: UMPQ), United Technologies (NYSE: UTX), Virginia Commerce (Nasdaq: VCBI), West Corp. (Nasdaq: WSTC), Westamerica Bancorp (Nasdaq: WABC), Westell Technologies (Nasdaq: WSTL), Western Digital (NYSE: WDC), Westwood Holdings (NYSE: WHG), WNS Holdings (NYSE: WNS) and Zhone Technologies (Nasdaq: ZHNE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Earnings Review 08-09-11

The day's earnings review includes a heavy list of EPS reporters. The day's headliners were clearly AOL, Dish Network, Beazer Homes and Ralcorp. Walt Disney reported its earnings after the close of trading. The reports highlighted here produced mostly negative results, which contradicts the solid quarter expected by analysts generally.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Earnings Review

AOL
AOL (NYSE: AOL) headlined the earnings wire today, and unfortunately the shares were down 26% as a result. AOL’s fall was so dramatic that it triggered exchange circuit breakers, halting trading in the shares for a breather. At about $11.20 now, AOL is the lowest it has been since the spinoff from Time Warner (NYSE: TWX) in 2009. Old problems continued to haunt AOL, with its subscriber base for Internet access continuing to recede. Nonetheless, the company grew advertising sales through the quarter ended June. The company’s net loss shrank to 11 cents, and it would have even earned $0.04 ex-special items. Unfortunately, while analysts had anticipated continued subscriber shedding, they were looking for better global advertising sales than surfaced. Revenues declined 8% in total, which is never a good thing.

Dish Network
Dish Network (Nasdaq: DISH) was down about a point Tuesday on its earnings report. DISH suffered a similar fate to AOL, as some of its subscribers moved to discounted plans offered by telephone companies Verizon (NYSE: VZ) and AT&T (NYSE: T). DISH lost 135K subscribers, where analysts were looking for the company to add 31K, according to StreetAccount data. The market thought a gain might happen, as DirecTV (NYSE: DTV) added 26K subscribers this quarter; though that was DTV’s lowest addition in years. Revenue grew 13%, ahead of the Street view, but the $0.75 DISH earned was short of the average analyst’s expectation for $0.79.

Beazer Homes
Beazer Homes (NYSE: BZH) fell 6% today, after reporting its results this morning. Revenue was scrapped 49%, and fell short of analysts’ expectations. The company posted a continuing loss per share of $0.75, though including $16 million in pretax charges, while analysts surveyed by Factset were looking for a loss of $0.46 on average (it’s unclear if the analysts’ view included the charge, but based on the stock’s movement it’s safe to say BZH came up short anyhow). There was some good news, though it wasn’t good enough for investors. New orders rose 23.7% in the quarter, and the company’s cancellation rate fell to 24.3% from 29.3%. Also, the company’s order backlog grew to 1,848, from 1,175 a year earlier.

Ralcorp
Ralcorp (NYSE: RAH) managed to salvage the day after starting lower. The company earned $1.15 a share after adjustments, off the analysts’ consensus for $1.20, based on Factset data. Revenues grew to $1.17 billion, on acquisitions, volume growth and price increase. The company also announced that it is buying Sara Lee’s (NYSE: SLE) North American refrigerated dough business for $545 million. The company maintained its full year estimate range of $5.20 to $5.35, which is inclusive of the consensus analyst view for $5.31.

The rest of the day’s EPS list includes: Abraxas Petroleum (Nasdaq: AXAS), Acorn Energy (Nasdaq: ACFN), Actions Semiconductor (Nasdaq: ACTS), ADDvantage Technologies (Nasdaq: AEY), Advanced Analogic Technologies (Nasdaq: AATI), Advocat (Nasdaq: AVCA), Agilysis (Nasdaq: AGYS), Alico (Nasdaq: ALCO), Ambient (Nasdaq: AMBT), Americana Bancorp (Nasdaq: ASBI), American Assets Trust (NYSE: AAT), American Oriental Bioengineering (NYSE: AOB), American Spectrum Reality (AMEX: AQQ), Amerigon (Nasdaq: ARGN), Amtech Systems (Nasdaq: ASYS), AOL (NYSE: AOL), Apollo Global Management (NYSE: APO), Applied Energetics (Nasdaq: AERG), Applied Industrial Technologies (NYSE: AIT), Arca BioPharma (Nasdaq: ABIO), Archipelago Learning (Nasdaq: ARCL), Arena Pharmaceuticals (Nasdaq: ARNA), Asia Entertainment & Resources (Nasdaq: AERL), AspenBio Pharma (Nasdaq: APPYD), Astronics (Nasdaq: ATRO), ATP Oil & Gas (Nasdaq: ATPG), Avatar Holdings (Nasdaq: AVTR), Barnwell Industries (AMEX: BRN), Beacon Power (Nasdaq: BCON), Beazer Homes (NYSE: BZH), Biglari (NYSE: BH), Bioanalytical Systems (Nasdaq: BASI), Biospecifics Technologies (Nasdaq: BSTC), Blonder Tongue Labs (AMEX: BDR), Blount Int’l (NYSE: BLT), Bluefly (Nasdaq: BFLY), Bluegreen (NYSE: BXG), Booz Allen Hamilton (NYSE: BAH), Cablevision (NYSE: CVC), Cadiz (Nasdaq: CDZI), Cambium Learning (Nasdaq: ABCD), Capstone Turbine (Nasdaq: CPST), Cardica (Nasdaq: CRDC), Carrizo Oil & Gas (Nasdaq: CRZO), Celsion (Nasdaq: CLSN), Central Virginia Bankshares (Nasdaq: CVBK), Chesapeake Midstream (Nasdaq: CHKM), China Automotive (Nasdaq: CAAS), China Technology Development (Nasdaq: CTDC), China Valves Technology (Nasdaq: CVVT), ChinaCast Education (Nasdaq: CAST), ClearOne Communications (Nasdaq: CLRO), Coca Cola Bottling (Nasdaq: COKE), Communications Systems (Nasdaq: JCS), Compass Diversified (Nasdaq: CODI), Comverge (Nasdaq: COMV), Connecticut Water Service (Nasdaq: CTWS), Consolidated Water (Nasdaq: CWCO), CorMedix (Nasdaq: CRMD), CPI Aerostructures (AMEX: CVU), Crexendo (AMEX: EXE), Cree (Nasdaq: CREE), Cytori Therapeutics (Nasdaq: CYTX), Daxor (AMEX: DXR), Deer Consumer Products (Nasdaq: DEER), Demand Media (NYSE: DMD), DGSE (Nasdaq: DGSE), Diodes (Nasdaq: DIOD), Dish Network (Nasdaq: DISH), Dover Saddlery (Nasdaq: DOVR), Duncan Energy Partners (NYSE: DEP), Ebix (Nasdaq: EBIX), Echostar (Nasdaq: SATS), Electro Sensors (Nasdaq: ELSE), EMC Insurance (Nasdaq: EMCI), Endo Pharmaceuticals (Nasdaq: ENDP), EnergySolutions (NYSE: ES), Enterprise Products Partners (NYSE: EPD), Entertainment Gaming Asia (AMEX: EGT), Envestnet (NYSE: ENV), Epocrates (Nasdaq: EPOC), Escalade (Nasdaq: ESCA), EV Energy Partners (Nasdaq: EVEP), E.W. Scripps (NYSE: SSP), Federal Agricultural Mortgage (NYSE: AGM), Feihe Int’l (NYSE: ADY), First Citizens Bank (Nasdaq: FCZA), FirstCity Financial (Nasdaq: FCFC), Fluidigm (Nasdaq: FLDM), FNB United (Nasdaq: FNBN), Forward Industries (Nasdaq: FORD), Fossil (Nasdaq: FOSL), Fuel Systems Solutions (Nasdaq: FSYS), Full House Resorts (AMEX: FLL), Furmanite (NYSE: FRM), FutureFuel (NYSE: FF), FX Energy (Nasdaq: FXEN), Gasco (AMEX: GSX), GenVec (Nasdaq: GNVC), Global Cash Access (NYSE: GCA), Greenlight Capital Re (Nasdaq: GLRE), GSE Systems (AMEX: GVP), GTx (Nasdaq: GTXI), Hackett Group (Nasdaq: HCKT), Harbin Electric (Nasdaq: HRBN), Harvest Natural (NYSE: HNR), Hawthorn Bancshares (Nasdaq: HWBK), Heckmann (NYSE: HEK), Hecla Mining (NYSE: HL), Hilltop (NYSE: HTH), Himax (Nasdaq: HIMX), Horizon Tech (Nasdaq: HRZN), Hospitality Property (NYSE: HPT), Industrial Services of America (Nasdaq: IDSA), Inergy (Nasdaq: NRGY), Infinity Pharma (Nasdaq: INFI), Institutional Financial Markets (Nasdaq: IFMI), Inter Parfums (Nasdaq: IPAR), International Flavor & Fragrances (NYSE: IFF), INTL FC Stone (Nasdaq: INTL), James River Coal (Nasdaq: JRCC), KAR Auction Services (NYSE: KAR), Kingtone Wireless Info (Nasdaq: KONE), KIT Digital (Nasdaq: KITD), Landauer (NYSE: LDR), Landmark Bancorp (Nasdaq: LARK), LDK Solar (NYSE: LDK), Liberty Media (Nasdaq: LINTA), Life Partners (Nasdaq: LPHI), Lightbridge (Nasdaq: LTBR), Lihua Int’l (Nasdaq: LIWA), Lion’s Gate Entertainment (NYSE: LGF), LML Payment (Nasdaq: LMLP), Loral Space and Communications (Nasdaq: LORL), LRAD (Nasdaq: LRAD), LuNA (Nasdaq: LUNA), Magnum Hunger (NYSE: MHR), Marfin Investment Group (ATH: MIG.AT), Masimo (Nasdaq: MASI), MedCath (Nasdaq: MDTH), Medidata Solutions (Nasdaq: MDSO), Medivation (Nasdaq: MDVN), Michael Baker (AMEX: BKR), Miller Industries (NYSE: MLR), Mistras (NYSE: MG), Motricity (Nasdaq: MOTR), Myriad Genetics (Nasdaq: MYGN), Nanosphere (Nasdaq: NSPH), National Security Group (Nasdaq: NSEC), Nelnet (NYSE: NNI), Neurogesx (Nasdaq: NGSX), Neutral Tandem (Nasdaq: TNDM), New Century Bancorp (Nasdaq: NCBC), Newlead Holdings (Nasdaq: NEWL), Nexstar Broadcasting (Nasdaq: NXST), NGP Capital (Nasdaq: NGPC), Northern Oil & Gas (AMEX: NOG), Nuance Communications (Nasdaq: NUAN), Omeros (Nasdaq: OMER), ORBCOMM (Nasdaq: ORBC), Orbit Int’l (Nasdaq: ORBT), Orbitz Worldwide (NYSE: OWW), Orient Paper (AMEX: ONP), PAETEC (Nasdaq: PAET), PAREXEL (Nasdaq: PRXL), Pantry (Nasdaq: PTRY), PC Mall (Nasdaq: MALL), Pegasystems (Nasdaq: PEGA), Pericom Semiconductor (Nasdaq: PSEM), PHI (Nasdaq: PHII), PICO Holdings (Nasdaq: PICO), Piedmont Office Realty Trust (NYSE: PDM), PMC Commercial Trust (AMEX: PCC), Pokertek (Nasdaq: PTEK), Poniard Pharmaceuticals (Nasdaq: PARD), Primus Guaranty (NYSE: PRS), Radnet (Nasdaq: RDNT), RCM Technologies (Nasdaq: RCMT), RELM Wireless (AMEX: RWC), Ralcorp (NYSE: RAH), Repros Therapeutics (Nasdaq: RPRX), RGC Resources (Nasdaq: RGCO), Rhino Resource Partners (NYSE: RNO), Rick’s Cabaret (Nasdaq: RICK), Rovi (Nasdaq: ROVI), Satcon Tech (Nasdaq: SATC), Sciclone Pharmaceuticals (Nasdaq: SCLN), Scientific Games (Nasdaq: SGMS), Sempra Energy (NYSE: SRE), Scripps Networks (NYSE: SNI), Seacube Container Leasing (NYSE: BOX), Seanergy Maritime (Nasdaq: SHIP), SearchMedia (AMEX: IDI), Sempra Energy (NYSE: SRE), Shoretel (Nasdaq: SHOR), Simcere (NYSE: SCR), SmartHeat (Nasdaq: HEAT), SmartPros (Nasdaq: SPRO), SMTC (Nasdaq: SMTX), Snyders Lance (Nasdaq: LNCE), Star Scientific (Nasdaq: CIGX), Strattec Security (Nasdaq: STRT), Sunpower (Nasdaq: SPWRA), Supreme Industries (AMEX: STS), Synutra (Nasdaq: SYUT), Sypris Solutions (Nasdaq: SYPR), Tengion (Nasdaq: TNGN), Textainer (NYSE: TGH), TIB Financial (Nasdaq: TIBB), Toreador Resources (Nasdaq: TRGL), Tornier (Nasdaq: TRNX), TranS1 (Nasdaq: TSON), Transact Technologies (Nasdaq: TACT), Transdigm (NYSE: TDG), TravelCenters (AMEX: TA), Universal Security Instruments (AMEX: UUU), URS (NYSE: URS), US Auto Parts (Nasdaq: PRTS), US Geothermal (AMEX: HTM), UTStarcom (Nasdaq: UTSI), Verenium (Nasdaq: VRNM), Viasystems (Nasdaq: VIAS), VirtualScopics (Nasdaq: VSCP), Vista Gold (AMEX: VGZ), Vitacost.com (Nasdaq: VITC), Vitesse Semiconductor (Nasdaq: VTSS), Voyager Oil and Gas (AMEX: VOG), Walt Disney (NYSE: DIS), Warren Resources (Nasdaq: WRES), Warwick Valley Telephone (Nasdaq: WWVY), Wave Systems (Nasdaq: WAVX), Wesco Aircraft (Nasdaq: WAIR), W.P. Carey (NYSE: WPC), Xinyuan Real Estate (NYSE: XIN), Yongye International (Nasdaq: YONG), Zhongpin (Nasdaq: HOGS) and Zoltek (Nasdaq: ZOLT).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Boeing and ArcelorMittal (NYSE: BA, NYSE: MT) – A Closer Look Post Data

We’re playing catch-up… Wednesday’s earnings review highlighted reports from Boeing, ArcelorMittal, Delta Airlines, WellPoint, General Dynamics, Northrop Grumman and P.F. Chang’s China Bistro. The report that follows highlights the news and outlook for Boeing and ArcelorMittal.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: Nasdaq: FUBC, NYSE: AHC, NYSE: ABD, Nasdaq: ACUR, Nasdaq: ACXM, Nasdaq: ADLR, NYSE: AEA, Nasdaq: AEGR, NYSE: AET, Nasdaq: AFFX, NYSE: AFL, Nasdaq: AKAM, NYSE: ALR, NYSE: ARE, NYSE: ATI, Nasdaq: AHGP, Nasdaq: ARLP, Nasdaq: EPAX, NYSE: DOX, Nasdaq: ARII, NYSE: APU, NYSE: AMP, Nasdaq: AMKR, NYSE: NLY, NYSE: MT, Nasdaq: AUDC, NYSE: AN, NYSE: AVB, NYSE: BMS, NYSE: BMC, NYSE: BA, Nasdaq: BOKF, NYSE: BYD, Nasdaq: BKBK, Nasdaq: BVSN, NYSE: COG, NYSE: CBG, Nasdaq: CHDN, Nasdaq: CTXS, NYSE: CLF, NYSE: CNO, Nasdaq: COHR, NYSE: COP, Nasdaq: CSGP, NYSE: CVD, Nasdaq: CROX, NYSE: CCI, NYSE: DAL, NYSE: DBD, NYSE: DOW, NYSE: DPS, NYSE: ENR, NYSE: EFX, NYSE: RE, Nasdaq: DAVE, Nasdaq: FLIC, NYSE: FLS, Nasdaq: FXCB, NYSE: GD, NYSE: GMR, Nasdaq: GLBC, Nasdaq: GMCR, NYSE: HGR, NYSE: HSP, Nasdaq: IBKC, NYSE: ISH, Nasdaq: LRCX, Nasdaq: LVLT, NYSE: LAD, NYSE: MRK, Nasdaq: MORN, NYSE: NMM, NYSE: NOC, NYSE: OII, NYSE: OI, Nasdaq: PFCB, NYSE: PX, NYSE: RA, Nasdaq: RNOW, NYSE: SFE, NYSE: SAP, NYSE: SEE, NYSE: SCI, Nasdaq: SFLY, Nasdaq: SRCL, NYSE: RGR, NYSE: SPN, NYSE: TER, Nasdaq: TEVA, Nasdaq: THQI, NYSE: TUP, Nasdaq: USMO, NYSE: V, NYSE: WLP, Nasdaq: WFM and NYSE: WYN.

Boeing and ArcelorMittal (NYSE: BA, NYSE: MT) – A Closer Look Post Data

Boeing
After a gap open Wednesday and a strong spike, the stock closed only fractionally higher. Boeing (NYSE: BA) shares were up more significantly through Friday midday trading though. Boeing reported better results than expected, enthusing and expanding its shareholder base. The company posted a turnaround in its commercial aircraft unit and also offered better guidance for its defense and aerospace business. But with higher fuel costs pressuring its commercial aircraft customers and tightening sovereign budgets pressuring its defense unit, we express caution. The stock is well off its May highs though and looks to have a solid technical support. Still, it’s the fundamental business I’m worried about moving forward. It’s most recent PEG ratio looks to be about 1.5, before adjustment for recent results, and is based on a long-term growth outlook of about 11.6%. Next year’s growth looks solid enough to support the stock, and given the company’s reinforcing guidance, the stock looks safe to hold over the short-term. However, I would not be adding to positions based on my concern that orders should slacken in a deteriorating global economic environment that seems probable in my macro view.

ArcelorMittal
The world’s largest steel maker now, ArcelorMittal (NYSE: MT) responded to investor concerns sparked by United States Steel (NYSE: X) and AK Steel (NYSE: AKS) Tuesday regarding current softness. MT said demand from China and U.S. automakers would pick-up the soft quarter so that the issue would not bear out into trend. Traditionally, automakers tend to close factories for a few weeks in the summer for maintenance work, and the Japanese shock also played a role in the temporary dip. As a result of the disaster though, new construction demand from Japan should support the steel market moving forward, especially for Japanese companies like Nippon Steel. Chinese consumption is seen increasing about 8.5% through 2011. Of course, ArcelorMittal and all the steelmakers are threatened by the debt debacle in the U.S. and further deterioration in Europe, and so I cannot be gung ho on steel nor MT today. The stock’s long-term chart also offers protection against short side risk though, and its valuation at a 0.5 PEG ratio is not particularly unappealing either. It’s the kind of cyclical idea that could take off on a good US debt deal that takes debt-downgrade risk off the table, but today the issue is still up in the air. The stock has been down all week and but is seeking stability today.

Others reporting earnings Wednesday: 1st United Bancorp (Nasdaq: FUBC), A.H. Belo (NYSE: AHC), Acco Brands (NYSE: ABD), Acura Pharmaceuticals (Nasdaq: ACUR), Acxiom (Nasdaq: ACXM), Adolor (Nasdaq: ADLR), Advance America Cash Advance (NYSE: AEA), Aegerion Pharmaceuticals (Nasdaq: AEGR), Aetna (NYSE: AET), Affymetrix (Nasdaq: AFFX), Aflac (NYSE: AFL), Akamai (Nasdaq: AKAM), Alere (NYSE: ALR), Alexandria Real Estate (NYSE: ARE), Allegheny Technologies (NYSE: ATI), Alliance Holdings (Nasdaq: AHGP), Alliance Resource Partners (Nasdaq: ARLP), Ambassadors Group (Nasdaq: EPAX), Amdocs (NYSE: DOX), American Railcar (Nasdaq: ARII), AmeriGas Partners (NYSE: APU), Ameriprise (NYSE: AMP), Amkor (Nasdaq: AMKR), Annaly Capital (NYSE: NLY), ArcelorMittal (NYSE: MT), Audiocodes (Nasdaq: AUDC), Autonation (NYSE: AN), AvalonBay Communities (NYSE: AVB), Bemis (NYSE: BMS), BMC Software (NYSE: BMC), Boeing (NYSE: BA), BOK Financial (Nasdaq: BOKF), Boyd Gaming (NYSE: BYD), Britton and Koontz Capital (Nasdaq: BKBK), BroadVision (Nasdaq: BVSN), Cabot Oil and Gas (NYSE: COG), CB Richard Ellis (NYSE: CBG), Churchill Downs (Nasdaq: CHDN), Citrix Systems (Nasdaq: CTXS), Cliffs Natural Resources (NYSE: CLF), CNO Financial (NYSE: CNO), Coherent (Nasdaq: COHR), ConocoPhillips (NYSE: COP), Costar Group (Nasdaq: CSGP), Covance (NYSE: CVD), Crocs (Nasdaq: CROX), Crown Castle Int’l (NYSE: CCI), Delta Airlines (NYSE: DAL), Diebold (NYSE: DBD), Dow Chemical (NYSE: DOW), Dr. Pepper Snapple (NYSE: DPS), Energizer (NYSE: ENR), Equifax (NYSE: EFX), Everest Re (NYSE: RE), Famous Dave’s (Nasdaq: DAVE), First of Long Island (Nasdaq: FLIC), Flowserve (NYSE: FLS), Fox Chase Bancorp (Nasdaq: FXCB), General Dynamics (NYSE: GD), General Maritime (NYSE: GMR), Global Crossing (Nasdaq: GLBC), Green Mountain Coffee (Nasdaq: GMCR), Hanger Orthopedic (NYSE: HGR), Hospira (NYSE: HSP), Iberiabank (Nasdaq: IBKC), International Shipholding (NYSE: ISH), Lam Research (Nasdaq: LRCX), Level 3 Communications (Nasdaq: LVLT), Lithia Motors (NYSE: LAD), Merck (NYSE: MRK), Morningstar (Nasdaq: MORN), Navios Maritime (NYSE: NMM), Northrop Grumman (NYSE: NOC), Oceaneering Int’l (NYSE: OII), Owens-Illinois (NYSE: OI), P.F. Chang’s China Bistro (Nasdaq: PFCB), Praxair (NYSE: PX), RailAmerica (NYSE: RA), RightNow Technology (Nasdaq: RNOW), Safeguard Scientifics (NYSE: SFE), SAP (NYSE: SAP), Sealed Air (NYSE: SEE), Service Corp. (NYSE: SCI), Shutterfly (Nasdaq: SFLY), Stericycle (Nasdaq: SRCL), Sturm Ruger (NYSE: RGR), Superior Energy (NYSE: SPN), Teradyne (NYSE: TER), Teva Pharmaceuticals (Nasdaq: TEVA), THQ (Nasdaq: THQI), Tupperware Brands (NYSE: TUP), USA Mobility (Nasdaq: USMO), Visa (NYSE: V), Wellpoint (NYSE: WLP), Whole Foods Market (Nasdaq: WFM), Wyndham Worldwide (NYSE: WYN) and more.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Talbot's (NYSE: TLB) – Fool Me Twice, Shame on Me!

Remember Talbot’s, the company that was one of the first retailers to struggle in the economic downturn, later followed and surpassed by Circuit City, Blockbuster and a few others? Yeah, well, she’s back to stinking up the joint again, the joint being the NYSE (NYSE: NYX) and the stinking being a 39% market capitalization shredding.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relevant Tickers: NYSE: XRT, NYSE: WMT, NYSE: PIR, NYSE: ETH, Nasdaq: HOFT, NYSE: HD, NYSE: LOW, Nasdaq: AAPL, NYSE: BBY, NYSE: LTD, NYSE: CHS, NYSE: ANN, NYSE: GPS, NYSE: M, NYSE: JCP, NYSE: JWN, NYSE: TJX, NYSE: KSS, Nasdaq: COST, NYSE: TGT, NYSE: WMT, Nasdaq: WTSLA, Nasdaq: HOTT, NYSE: AEO, NYSE: ARO, NYSE: ANF, NYSE: SAK, NYSE: TIF, NYSE: TLB, NYSE: LL, Nasdaq: BLDR, NYSE: FO, NYSE: LEG, NYSE: TPX, NYSE: AYI, NYSE: LZB, Nasdaq: SCSS, NYSE: ZZ, NYSE: FBN, NYSE: NTZ, Nasdaq: SHLD, NYSE: DDS, Nasdaq: BONT, Nasdaq: CPWM, Nasdaq: BKRS, Nasdaq: BEBE, NYSE: BKE, Nasdaq: CACH, Nasdaq: CMRG, Nasdaq: CATO, NYSE: CBK, Nasdaq: CTRN, NYSE: PSS, Nasdaq: DEST, Nasdaq: DBRN, NYSE: DSW, Nasdaq: FINL, NYSE: FL, Nasdaq: GYMB, NYSE: GES, NYSE: JCG, NYSE: JNY, Nasdaq: JOSB, NYSE: NWY, NYSE: JWN, NYSE: MW, Nasdaq: SYMS, Nasdaq: PLCE.

Talbot's (NYSE: TLB) – Fool Me Twice, Shame on Me!

Talbot’s (NYSE: TLB) shares are light 39%, trading at just $2.75 through midday Tuesday after the company disappointed investors with a still soft outlook. It’s a shame too, as its first quarter results exceeded analysts’ consensus EPS expectations for $0.03; the company earned $0.08 in adjusted EPS excluding special items.

Revenue was a bit light in Q1, at $301.3 million, short of last year’s $320.7 million and analysts’ expectations for $306 million, based on FactSet (NYSE: FDS) data. Same-store sales, including internet and catalog sales but excluding stores scheduled to close, fell 8.2% in Q1. The company’s CEO, Trudy Sullivan, said sales were uneven throughout the quarter, with a stronger March than February and April. She blamed an "inconsistent customer response to our merchandise assortments, a challenging competitive environment and high levels of promotional activity." February weather no doubt played a role, but April should have benefited from Easter.

The company’s margins were squeezed, with its cost of sales rising 800 basis points on the retailer’s need to markdown items and on what’s seems like aimless promotional activity. Talbots saved 60 basis points on its SG&A line, but at what cost. It garnered the margin on a reduction to performance based manager incentive compensation. Thanks to weaker than expected quarterly sales, Talbots ended the quarter with 13.1% higher inventory than the prior year, and now it’s got to move that load.

What greatly troubled investors Tuesday was that sales through Q2 were down low-teens against the prior year, so far. Margins are expected to tighten significantly, with gross margin looking to squeeze 1000 basis points. The company indicated that turbulence was to be expected in this transition year, but perhaps its lack of execution in fashion identification and its strategic vision as to its target market were not on par either.

Talbots is going to close 110 stores over the next three fiscal years, with 83 coming this year. It’s trying to further identify itself with Americans as a high end destination that’s also fashion conscious, something that’s been apparently lacking. Yet, maybe the problem is that there’s just no room for The Talbots, and it should close a few hundred more stores. I’ve speculated in the past that the bland brand may have been tarnished beyond repair and should have been left for dead the first time. At the high end, Talbots competes against the stronger brands at Saks (NYSE: SKS), Bloomingdales and Nordstrom (NYSE: JWN). The value conscience high-end shopper is likely spending carefully at the nifty T.J. Maxx (NYSE: TJX), Syms or Filene’s Basement (Nasdaq: SYMS).

The company fumbled once last decade, and is currently looking like it might outdo itself this decade. An analyst at Miller Tabak certainly seems to think so, cutting his recommendation to sell from neutral Tuesday. There’s an old adage that reads, “Fool me once, shame on you; fool me twice, shame on me.” Unfortunately, it seems as though more than a few investors are feeling shame today.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

COST EPS Q3 FY 2011 - Costco Trouble Passing Prices Through

QUICK TAKE

Costco

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

COST EPS Q3 FY 2011

Costco (Nasdaq: COST) shares were down 1% in Wednesday trading, after the company reported its third quarter profit up 5.9%. Revenue gained 16%, benefiting from U.S., Canadian and Mexican growth. COST’s EPS of $0.73 though, fell short of the consensus view for $0.77, based on Factset data. Costco’s revenue growth benefited from higher gasoline and food prices, but its gross margin was pressured. It appears many companies are having trouble passing price increases completely through. When a discounter's cost of goods sold is pressured, and it competes on price, its margins are getting squeezed. So while a tough economy and rising prices send people to the discounters, driving up their volumes, it also contracts their variable cost margins.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

RL EPS Q4 FY 2011 - Polo Ralph Lauren Offers Complexity

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Polo Ralph Lauren

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

RL EPS Q4 FY 2011

Polo Ralph Lauren (NYSE: RL) shares were down 11% Wednesday, after it reported 36% lower fiscal fourth quarter net income. The $0.74 a share it earned was short of the $0.79 forecast by analysts. The company said the prior year included an extra week, costing it perhaps $0.13 this year. RL also blamed a shift in the Easter holiday, but investors were not listening, since the analysts’ forecasts would have included those factors. Same-store sales increased 7%, and the company forecast first quarter revenue climbing in the mid-20% range. Same-store sales are seen slipping though to a low double-digit rate. RL experienced a narrowing gross margin, as "unprecedented inflationary pressure" plagued it. The entire industry is seeing higher raw materials costs and also increased wage demands in China. This complex report shows that managing volatile supply, i.e. wildly rising cotton prices, offers an uncertainty that can cost investors.



Article should interest American Apparel (NYSE: APP), Carter’s (NYSE: CRI), Cherokee (Nasdaq: CHKE), China Xiniya Fashion (NYSE: XNY), Columbia Sportswear (Nasdaq: COLM), Crown Crafts (Nasdaq: CRWS), Delta-Apparel (AMEX: DLA), Ever-Glory International (AMEX: EVK), Frederick’s of Hollywood (AMEX: FOH), G-III Apparel (Nasdaq: GIII), Gildan Activewear (NYSE: GIL), Hampshire Group (OTC: HAMP.PK), Hanesbrands (NYSE: HBI), Jaclyn (OTC: JCLY.PK), JLM Couture (OTC: JLMC.PK), Joe’s Jeans (Nasdaq: JOEZ), Liz Claiborne (NYSE: LIZ), lululemon (Nasdaq: LULU), Maidenform Brands (NYSE: MFB), Oxford Industries (NYSE: OXM), Perry Ellis (Nasdaq: PERY), Phillips-Van Heusen (NYSE: PVH), Polo Ralph Lauren (NYSE: RL), Quiksilver (NYSE: ZQK), Superior Uniform (Nasdaq: SGC), Tefron (OTC: TFRFF.PK), Warnaco Group (NYSE: WRC), Triumph Apparel (OTC: TRUA.PK), True Religion (Nasdaq: TRLG), Under Armour (NYSE: UA), V.F. Corp. (NYSE: VFC), Wacoal (Nasdaq: WACLY), Zuoan Fashion (NYSE: ZA).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

AEO Q1 FY 2012 EPS - American Eagle Faces Tight Environment

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American Eagle

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

AEO Q1 FY 2012 EPS

American Eagle Outfitters (NYSE: AEO) shares were down about 5% Wednesday, after the company reported revenues fell 6% in its fiscal first quarter. Cost cuts still allowed AEO to nearly triple EPS to $0.14, which was in line with the analysts’ consensus, according to Factset. Revenues missed consensus though by nearly $30 million. Same-store sales fell 8%. While the company indicated sales were a bit better in the second quarter so far, and that it would be making some inventory changes to help sales along, its EPS guidance of $0.10 to $0.13 a share was disappointing against the analysts’ consensus for $0.13.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

HRL Q2 2011 EPS - Hormel Faces Challenging Pricing Dynamics

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Hormel Foods

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

HRL Q2 2011 EPS

Hormel (NYSE: HRL) shares were down 5% Wednesday, as the company is having issue managing its pricing along with its rising costs. HRL grew EPS 41% to $0.40, but analysts were looking for $0.41 a share. Meanwhile, the company earned less income on stronger revenues than analysts had anticipated. It looks as though Hormel has not matched its rising costs perfectly, but the cure for its ailment may not be higher prices in a competitive environment. Hormel did raise its guidance, but analysts were already expecting that. The consensus view now for the full year is $1.71, sitting above the center of the company’s guidance for $1.67 to $1.73. In my view, Hormel seems to be executing rather well considering a difficult and dynamic environment, but it appears investors are worried about the environment more than Hormel’s execution.



Article should interest Smithfield Foods (NYSE: SFD), Brasil Foods SA (Nasdaq: BRFS), Tyson Foods (NYSE: TSN), Hormel (NYSE: HRL), Seaboard (NYSE: SEB), Pilgrim's Pride (NYSE: PPC), Sanderson Farms (Nasdaq: SAFM), Industrias Bachoco (NYSE: IBA), Balchem (Nasdaq: BCPC), Zhongpin (Nasdaq: HOGS), Bridgford Foods (Nasdaq: BRID), Sara Lee (NYSE: SLE), Pepsico (NYSE: PEP), Unilever NV (NYSE: UN), Unilever plc (NYSE: UL), General Mills (NYSE: GIS), Kellogg (NYSE: K), Campbell Soup (NYSE: CPB), ConAgra Foods (NYSE: CAG), Mead Johnson Nutrition (NYSE: MJN), J.M. Smucker (NYSE: SJM), McCormick (NYSE: MKC), Green Mountain Coffee (Nasdaq: GMCR), Ralcorp (NYSE: RAH), Del Monte (NYSE: DLM), Corn Products (NYSE: CPO), Flowers Foods (NYSE: FLO), Treehouse Foods (NYSE: THS), Gruma S.A.B. (NYSE: GMK), American Italian Pasta (Nasdaq: AIPC), Diamond Foods (Nasdaq: DMND), J&J Snack Foods (Nasdaq: JJSF), Lance (Nasdaq: LNCE), B&G Foods (NYSE: BGS), Seneca Foods (Nasdaq: SENEB), Smart Balance (Nasdaq: SMBL), Farmer Brothers (Nasdaq: FARM), John B. Sanfilippo (Nasdaq: JBSS), China Marine Food (Nasdaq: CMFO), MGP Ingredients (Nasdaq: MGPI), China Nutrition (Nasdaq: CNGL), Overhill Farms (AMEX: OFI), Omega Protein (NYSE: OME), Key Technology (Nasdaq: KTEC), Tasty Baking (Nasdaq: TSTY), Inventure Foods (Nasdaq: SNAK), Golden Enterprises (Nasdaq: GLDC).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

TOL Q2 2011 EPS - Toll Brothers Produces Positive Indicators

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Toll Brothers

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

TOL Q2 2011 EPS

Toll Brothers (NYSE: TOL) shares were up about 2.3% through late-day trading, after being alone among homebuilders on the positive side in Tuesday’s trade. TOL reported positive data with regard to contract signings, home deliveries and home sales pricing. That forward looking information helped stave off concern about its EPS miss, as the company reported a $0.12 loss per share, against analyst expectations for a $0.04 loss. Based on my experience as an analyst, the operating figure was probably closer to the analysts’ view, especially considering that revenues came in about in line with the analysts’ view. However, the positive indicators were more than enough to support the shares today. Contract signings rose 8%; home deliveries rose 9%; and the average price of newly signed contracts improved 1%. The company also upped its delivery expectations for the year to 2,300 to 2,800, up from the 2,200 it previously said was possible. This verifies much of what we've been writing on the blog regarding our positive outlook for homebuilders this year, despite only marginal growth seen for real estate.

Article should interest investors in Investors Title (Nasdaq: ITIC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Hovnanian (NYSE: HOV), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), K.B. Homes (NYSE: KBH), Pulte Homes (NYSE: PHM), NVR Inc. (NYSE: NVR), Gafisa SA (NYSE: GFA), MDC Holdings (NYSE: MDC), Ryland Group (NYSE: RYL), Meritage Homes (NYSE: MTH), Brookfield Homes (NYSE: BHS), Standard Pacific (NYSE: SPF), M/I Homes (NYSE: MHO), Orleans Homebuilders (AMEX: OHB), Vanguard REIT Index ETF (NYSE: VNQ), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), Hooker Furniture (Nasdaq: HOFT), Ethan Allen (NYSE: ETH), Pier 1 Imports (NYSE: PIR), Williams Sonoma (NYSE: WSM), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Nasdaq: XNFZX, Nasdaq: FSAZX, Avatar Holdings (Nasdaq: AVTR), Apartment Investment & Management (NYSE: AIV), Equity Residential (NYSE: EQR), Avalonbay Communities (NYSE: AVB), UDR Inc. (NYSE: UDR), Essex Property Trust (NYSE: ESS), Camden Property Trust (NYSE: CPT), Senior Housing Properties (NYSE: SNH), BRE Properties (NYSE: BRE), Home Properties (NYSE: HME), Mid-America Apartment (NYSE: MAA), Equity Lifestyle Properties (NYSE: ELS), American Campus Communities (NYSE: ACC), Colonial Properties (NYSE: CLP), American Capital Agency (Nasdaq: AGNC), Sun Communities (NYSE: SUI), Associated Estates (NYSE: AEC), PennyMac Mortgage (NYSE: PMT), Two Harbors (AMEX: TWO), Simon Property Group (NYSE: SPG).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.