Circuit City, Pier 1 Struggle; Indexes Mixed

123jump.com Staff
19 Jun, 2008
New York City

U.S. stocks opened with a negative bias after the release of weekly jobless claims. The claims at the end of last week fell 5,000 to 381,000 and unemployment rate fell to 2.3%. Oil traded at elevated level and European markets edge lower at mid-day trading. Protests from union workers across Europe are on the rise as workers demand higher wages. Food and energy prices are on the rise in the region reflecting worldwide trends. Stocks in Japan, Hong Kong and India closed sharply lower.

[R]9:30AM New York – U.S. stocks open higher. U.S. unemployment claims fall. Oil trades at elevated level.[/R]

Stocks traded higher at the opening after the release of earnings from Pier 1, Circuit City, Gerber Scientific and J M Smucker.

Sales at Circuit City and Pier 1 continue to decline but at J M Smucker and Gerber Scientific rose in the quarter.

Oil field services stock rose in the morning trading after Goldman Sachs recommended stocks in the sector.

European stocks edged lower and retail sales in the UK rose. Workers across Europe are demanding higher wages as food and housing cost rises.

Weekly claims of U.S. unemployment at the end of previous week fell 5,000 to 381,000 and insured unemployment rate declined to 2.3% from 2.4% in the prior week.

Earnings review

American Software, Inc, Business software maker said fourth quarter revenues declined 4% to $21.6 million from $22.4 million a year ago. Net income in the quarter declined 69% $900,000 or 3 cents per diluted share compared to net income of $2.9 million or 11 cents per share a year ago.

Software license revenue declined 29% to $4.7 million. Services and other revenue rose 5% to $9.6 million, while maintenance revenue rose 9% to $7.3 million. For the full fiscal 2008 year, the company earned $6.5 million, or 25 cents per share, compared with $8.4 million, or 33 cents per share, in the prior year. The company''s revenue rose to $89 million from $84.4 million in fiscal 2007.

American Software, Inc ((AMSWA)) in the last one year traded as high as $13.35 in July 2007 and as low as $5.38 in March 2008. Based on the yesterday’s closing price the company has a market cap of $165.25 million.

Circuit City Stores, Inc, the electronics retailer reported first quarter revenues fell 7% to $2.30 billion from $2.49 billion a year ago. Net loss in the quarter was $164.8 million or $1 per diluted share compared to net loss of $54.6 million or 33 cents per share, a year ago.

Same-store sales dropped 11.3%.

Circuit City Stores, Inc ((CC)) in the last one year traded as high as $16.53 in June 2007 and as low as $3.44 in January 2008. Based on the yesterday’s closing price the company has a market cap of $683.67 million.

Casella Waste Systems, Inc, a garbage collector and recycler said fourth quarter revenues rose 10% to $139.6 million from $126.7 million a year ago. Net loss in the quarter was $7.8 million or 31 cents per diluted share compared to net loss of $20.3 million or 80 cents per share, a year ago.

Operating expenses fell 8.4% to $134.1 million, from $146.4 million in the 2007 period. For the full year 2008, Casella posted a loss of $7.8 million or 31 cents per share, compared with a 2007 loss of $21.5 million, or 85 cents per share, for 2007. Revenue rose to $579.5 million from $531.3 million the year before.

Casella Waste Systems, Inc ((CWST)) in the last one year traded as high as $16.20 in November 2007 and as low as $9.64 in March 2008. Based on the yesterday’s closing price the company has a market cap of $307.53 million.

Culp, Inc, maker of products used for covering mattresses and box springs said fourth quarter sales declined 14.37% to $64.0 million from $73.2 million a year ago. Net income in the quarter was $2.1 million or 16 cents per diluted share compared to net loss of $40,000 or break even per share a year ago.

For the fiscal year ended April 27, 2008, the company reported net sales of $254.0 million compared with $250.5 million for the same period a year ago. Net income for fiscal 2008 was $5.4 million or $0.42 per diluted share, compared with a net loss of $1.3 million or $0.11 per share, for fiscal 2007.

Culp, Inc ((CFI)) in the last one year traded as high as $12.30 in July 2007 and as low as $6.12 in January 2008. Based on the yesterday’s closing price the company has a market cap of $89.20 million.

Healthways, Inc, Disease-management program administrator said third quarter revenues rose 14% to $191.4 million from $167.9 million a year ago. Net income in the quarter jumps 29% to $14 million or 39 cents per diluted share compared to net income of $11 million or 29 cents per share a year ago.

Healthways, Inc ((HWAY)) in the last one year traded as high as $71.22 in January 2008 and as low as $28.43 in May 2008. Based on the yesterday’s closing price the company has a market cap of $1.08 billion.

IHS Inc, a publisher of technical data said second quarter revenues jumped 34% to $207.2 million from $154.9 million a year ago. Net income in the quarter grew 25% to $23.3 million or 37 cents per diluted share compared to net income of $18.6 million or 32 cents per share, a year ago.

IHS Inc ((IHS)) in the last one year traded as high as $72.19 in December 2007 and as low as $43.75 in June 2007. Based on the yesterday’s closing price the company has a market cap of $4.03 billion.

Immtech Pharmaceuticals, Inc, focused on developing and commercializing drugs for infectious diseases said fourth quarter revenues jumped 77.8% to $6.0 million from $1.3 million a year ago. Net income in the quarter was $560 million or 3 cents per diluted share compared to net loss of $3.2 million or 22 cents per share, a year ago.

For the fiscal year ended March 31, 2008, revenues increased to $9.7 million as compared to $4.3 million in the prior year. Net loss attributable to common stockholders for the year ended March 31, 2008 was $11.04 million or $0.71 per share compared to a loss of $11.7 million or $0.82 per share in the previous year.

Immtech Pharmaceuticals, Inc ((IMM)) in the last one year traded as high as $8.99 in October 2007 and as low as $0.48 in March 2008. Based on the yesterday’s closing price the company has a market cap of $16.38 million.

Pier 1 Imports, Inc, Home furnishings retailer reported first quarter revenues slipped 13% to $310 million from $356 million a year ago. Net loss in the quarter was $32.8 million or 37 cents per diluted share compared to net loss of $56.4 million or 64 cents per share, a year ago. Comparable store merchandise margin dollars increased approximately 3% and comparable store sales declined 5.4%.

Pier 1 Imports, Inc ((PIR)) in the last one year traded as high as $8.96 in June 2007 and as low as $3.26 in December 2007. Based on the yesterday’s closing price the company has a market cap of $555 million.


World markets review

In Tokyo Nikkei 225 Index closed lower 322.65 or 2.23% to 14,130.17, in Hong Kong Hang Seng index decreased 528.19 or 2.26% closed to 22,797.61. In Australia ASX 200 index lower 76.60 or 1.41% to close 5,366.60. In Malaysia KL Composite index decreased 16.20 or 1.34% closed to 1,196.39.

In South Korea Kospi Index decreased 33.41 or 1.88% to close at 1,740.72, in Thailand SET index closed lower 23.28 or 3.04% to 742.46 and Indonesia JSE Index edged increased 8.48 or 0.36% to 2,373.06. Sensex index in India decreased 334.32 or 2.17% to 15,087.99.