Wal-Mart, Nordstrom, Manitowoc Fall, Sears Rises

Mayank Mehta
08 Jan, 2009
New York City

U.S. stocks fell after retailers lowered the profit outlook and reported weaker than expected sales. Wal-Mart fell after it missed sales rise estimate in December and lowered earnings outlook. Macys and Gap dropped too. Manitowoc dropped after it lowered earnings estimates.

[R]4:30PM New York – U.S. stocks fell after retailers lowered the profit outlook and reported weaker than expected sales.[/R]

Of the stocks in S&P 500 index, 190 declined, 304 increased and 6 were unchanged.

Manitowoc Company led decliners in the S&P 500 index followed by losses in Sun Microsystems of 8.3%, in Wal-Mart Stores of 7.5%, in Nasdaq OMX Group of 7.4%, in CIT Group Inc 7.2%, in Limited Brands of 6.5%, in Intuitive Surgical of 6.2%, in Lincoln National Corp of 5.4%.

Sears Holdings led the gainers in S&P 500 index with a rise of 23% followed by increase in Whole Foods Market of 22.3%, in GameStop of Corp of 13%, in MBIA Inc of 11.5% and in AK Steel Holdings of 11%.

Other Movers

Abercrombie & Fitch Co ((ANF)) declined 9.5% or $2.26 to $21.48 after the specialty retailer of casual apparel reported 24% decrease in same-store sales for December, with 18% decline in net sales. Net sales for December totaled $539.2 million, down from $657.0 million in the same period of last year.

Anadys Pharmaceuticals, Inc ((ANDS)) climbed 64.4% or $1.23 to $3.14 after the drug developer said eight patients with hepatitis C treated with a twice-daily dose of the drug ANA598 reported a median reduction of more than 99% in the level of virus after three days of treatment.

Bed Bath & Beyond Inc ((BBBY)) slid 3.1% or 80 cents to $24.75 after the chain of retail stores said third quarter sales fell 0.6% to $1.78 billion from $1.79 billion a year ago. Net income in the quarter fell 36.5% to $87.7 million or 34 cents per diluted share compared to net income of $138.2 million or 52 cents per share a year ago.

FCStone Group, Inc ((FCSX)) rose 12.8% or 65 cents to $5.47 after the commodity risk management firm reported first quarter sales rose 16.3% to $85.6 million from $73.6 million a year ago. Net loss in the quarter was $3.0 million or 11 cents per diluted share compared to net income of $13.1 million or 45 cents per share a year ago.

GameStop Corp ((GME)) gained 8.7% or $1.97 to $24.58 after the world’s largest video-game retailer of raised its fourth quarter earning per share guidance from a range of $1.29 and $1.34 to $1.31 and $1.34.

Hansen Medical, Inc ((HNSN)) lost 21.9% or $1.73 to $6.12 after the medical company was downgraded to “underweight” from “equal weight” by analysts at Morgan Stanley.

Helen of Troy Limited ((HELE)) fell 13.4% or $1.98 to $12.75 after the worldwide marketer of brand-name personal care and household consumer products reported third quarter sales fell 11.8% to $185.62 million from $210.35 million a year ago. Net income in the quarter fell 34% to $15.09 million or 48 cents per diluted share compared to net income of $22.84 million or 73 cents per share a year ago.

Immucor, Inc (BLUD)) gained 9.5% or $2.25 to $25.75 after the maker of testing systems used by blood banks aid price increases in the United States accounted for nearly two-thirds of the rise in consolidated revenue, reported a rise of 7.3% in second quarter net income at $17.3 million. Revenue rose 18% to $73 million.

Intuitive Surgical, Inc ((ISRG)) fell 12.2% or $14.38 to $103.50 after the da Vinci Surgical Systems For 2009, the company expects revenue to increase about 15% over expected 2008 sales of about $875 million. Analysts on average expect the company to post revenue of $1.10 billion, according to Reuters Estimates.

Limited Brands, Inc ((LTD)) slipped 7.3% or 79 cents to $9.91 after the owner of the Victoria’s Secret chain the company currently estimates that fourth quarter earnings will be between 55 cents to 70 cents a share.

MSC Industrial Direct Co., Inc ((MSM)) plunged 10.8% or $3.91 to $31.98 after the tools and industrial services provider reported first quarter sales fell 1% to $433.0 million from $437.6 million a year ago. Net income in the quarter fell 4% to $45.1 million or 72 cents per diluted share compared to net income of $46.9 million or 70 cents per share a year ago.

The Manitowoc Company, Inc ((MTW)) slid 16.2% or $1.54 to $7.96 after the cranes and related products and foodservice equipment maker for full-year 2008 indicated that adjusted earnings will be within the low end of the previous guidance range of $3.15 to $3.25 per diluted share. For full year 2009, the company anticipates a revenue reduction of approximately 20% for its crane segment, which will be offset by an approximate 200% revenue increase by its foodservice segment.

Nordstrom, Inc ((JWN)) plunged 8.8% or $1.32 to $13.74 after the fashion specialty retailer reported preliminary sales of $1.13 billion for the five-week period ended January 3, 2009, down 8% from $1.22 billion for the five-week period ended January 5, 2008. Same-store sales for December decreased 10.6%.

The company now expects fourth-quarter earnings per share to not meet its previously announced outlook between $0.35 and $0.45.

Parametric Technology Corporation ((PMTC)) fell 14.1% or $1.82 to $11.03 after the maker of industrial software expects earnings of 14 cents a share to 16 cents a share, excluding items, on revenue of $240 million for the first quarter ended January 3.

Robbins & Myers, Inc ((RBN)) added 7.3% or $1.36 to $20.00 after the diversified manufacturer said first quarter sales rose 3% to $178 million from $173.5 million a year ago. Net income in the quarter rose 24% to $17.2 million or 50 cents per diluted share compared to net income of $13.9 million or 40 cents per share a year ago.

Ruby Tuesday, Inc ((RT)) gained 7.3% or 11 cents to $1.60 after the restaurant companies said second quarter revenues fell 9.7% to $289.8 million from $320.9 million a year ago. Net loss in the quarter was $37.4 million or 73 cents per diluted share compared to net loss of $10.4 million or 20 cents per share a year ago. Comparable same store sales fell 10.8%.

Sonic Corp ((SONC)) declined 10.4% or $1.19 to $10.21 after the restaurant chain said first quarter revenues fell 3.2% to $184.1 million from $190.2 million a year ago. Net income in the quarter fell 48% to $7.1 million or 12 cents per diluted share compared to net income of $13.6 million or 22 cents per share a year ago. Comparable same store sales fell 3.6%.

The Shaw Group Inc ((SGR)) gained 10.9% or $2.54 to $24.72 an engineering and construction company reported first quarter sales rose 12% to $1.9 billion from $1.7 billion a year ago. Net loss in the quarter was $39.9 million or 48 cents per diluted share compared to net income of $2.2 million or 3 cents per share a year ago.

Sears Holdings Corporation ((SHLD)) rose 18.5% or $7.50 to $48.05 after the retailer said December domestic same-store sales fell 7.3%, with Kmart sales down 1.1% and Sears domestic sales falling 12.8%. Sears added that it expects to earn between $300 million and $380 million, or $2.44 and $3.09 a share, for the January 31 ending quarter, compared to $426 million, or $3.17 a share, in the year-earlier quarter.

Thinkorswim Group Inc ((SWIM)) rose 46.0% or $2.60 to $8.25 after the online brokerage and investor education company that TD Ameritrade Holding Corp said on Thursday it will buy thinkorswim Group Inc for $606 million.

Wal-Mart Stores, Inc ((WMT)) fell 8.9% or $4.99 to $50.55 after the largest retailer surprised investors by turning in December sales that missed expectations and lowered its fourth quarter earnings estimate.

WD-40 Company ((WDFC)) decreased 5.3% or $1.44 to $25.35 after the household lubricant and cleaning products maker said first quarter revenues rose 5.6% to $83.6 million from $79.2 million a year ago. Net income in the quarter rose 24% to $7.7 million or 46 cents per diluted share compared to net income of $6.2 million or 36 cents per share a year ago.