U.S. Movers: Clearwire, Gannett, Men

Mukesh Buch
13 Jun, 2013
New York City

Comverse sales jumped and net loss narrowed. Clearwire requests shareholders to accept cash offer of Dish Network and not from Sprint. Gannett agreed to acquire Belo Corp. for $2.2 billion. Safeway sold it Canadian operations to Sobeys for C$5.8 billion in cash.

[R]11:25 AM New York – Comverse sales jumped and net loss narrowed. Clearwire requests shareholders to accept cash offer of from Dish and not from Sprint. Gannett agreed to acquire Belo Corp. for $2.2 billion. Safeway sold it Canadian operations to Sobeys for C$5.8 billion in cash.[/R]

Comverse, Inc. ((CNSI)) slid 11 cents to $30.17 after the software developer stated total revenues in the fourth quarter ending in April jumped 13% to $155.8 million. Net loss in the quarter narrowed to $3.14 million or 14 cents a diluted share compared to $26.3 million or $1.21.

Clearwire Corporation ((CLWR)) rose 4 cents to $4.41 after the company’s board recommended that shareholders accept a cash offer of $4.40 per share from Dish Network Corporation and unanimously recommended that stockholders vote against the $3.40 per share offer of Sprint Nextel.

Gannett Co., Inc. ((GCI)) surged 24.4% or $4.84 to $24.69 after the media company agreed to acquire Belo Corp. for $2.2 billion, represents a 28.1% premium to the closing price of Belo’s common stock on June 12.

Luby’s, Inc. ((LUB)) fell 1.4% or 12 cents to $8.49 after restaurant operator reported total sales in the third quarter ending on May 8 climbed 16% to $97.5 million. Comparable store sales decreased to 0.1%.

Net income in the quarter increased 3% to $2.49 million or 9 cents a diluted share compared to $2.42 million or 9 cents.

For the year, the company expects same-store sales results in the range of approx flat to down 1% and restaurant sales between $362 million and $366 million and diluted earnings per share in the range of 19 cents to 22 cents.

The Men’s Wearhouse, Inc ((MW)) jumped 3.2% or $1.15 to $36.74 after the specialty retailer stated total net sales in the first quarter ending on May 4 advanced 5% to $616.5 million. Comparable store sales declined to 6.7%.

Net earnings in the quarter climbed 23% to $33.1 million or 65 cents a diluted share compared to $26.9 million or 52 cents.

The company added total gross margin in the quarter jumped 9% to $277.9 million.

For the year, the company expects diluted earnings per share in the range of $2.70 to $2.80 and comparable store sales slightly lower between 4% and 5%.

PVH Corporation ((PVH)) climbed 9.4% or $10.49 to $121.77 after the sportswear and footwear maker said total revenue in the first quarter ending on May 5 soared 34% to $1.91 billion. Comparable store sales declined to 6.7%.

In the quarter, net swung to a loss $20 million or 25 cents a diluted share compared to net profit $95.5 million or $1.30.

Gross profit in the quarter surged 26% to $951.9 million.

For second quarter, the company expects revenue of $1.9 billion and non-GAAP basis diluted earnings per share approximate $1.35.

Safeway Inc ((SWY)) soared 10.6% or $2.44 to $25.57 after the food and drug retailer agreed to sell its Canadian operations to Sobeys Inc., a wholly owned subsidiary of Empire Company Limited for C$5.8 billion in cash.