Sears, PetSmart Fall; AIG Surges

Mayank Mehta
20 Aug, 2009
New York City

Sears Holdings led the decliners in the S&P 500 index with a loss of 13.3%. Barnes & Noble declares quarterly cash dividend. Hot Topic second quarter beat estimates but offers weak outlook. Citi Trends lowers annual earnings outlook. AIG surged after chief executive Benmosche offered positive views.

[R]12:10 PM New York – Sears Holdings led the decliners in the S&P 500 index with a loss of 13.3%. Barnes & Noble declares quarterly cash dividend. Hot Topic second quarter beat estimates but offers weak outlook. Citi Trends lowers annual earnings outlook.[/R]

Of the stocks in S&P 500 index, 346 increased, 144 declined and 10 were unchanged.

Sears Holdings Corporation led the decliners in the S&P 500 index with a loss of 13.3% followed by losses in GameStop Corp of 6.2%, in NetApp, Inc of 3.8%, in Family Dollar Stores, Inc of 1.8% and in Johnson Controls, Inc of 1.2%.

American International Group, Inc led gainers in the S&P 500 index with a rise of 7.7% followed by gains in E*Trade Financial Corporation 5.0%, in Patterson Companies, Inc of 4.0% and Prudential Financial, Inc of 3.9%.

Other Movers

1-800-Flowers.com, Inc ((FLWS)) fell 18.3% or 55 cents to $2.45 after the florist and gift shop reported fourth quarter sales fell 10.5% to $138.1 million from $154.3 million a year ago. Net loss in the quarter was $22.2 million or 35 cents per diluted share compared to net income of $4.3 million or 7 cents per share a year ago.

Allied Capital Corporation ((ALD)) rallied 5.7% or 19 cents to $3.34 after the buyout and lending firm was upgraded to “market perform” from “underperform” at Keefe, Bruyette & Woods Inc and set a stock price target to $3.50 from $1.

AFC Enterprises, Inc ((AFCE)) decreased 1.2% or 10 cents to $7.98 after the restaurant operator said second quarter revenues fell 9% to $35.7 million from $39.3 million a year ago. Net income in the quarter fell 3% to $6.4 million or 25 cents per diluted share compared to net income of $6.6 million or 26 cents per share a year ago.

American International Group ((AIG)) surged 27% or $6.94 to $33.58 after the newly appointed chief executive offered positive views. Robert Benmosche in comments in Europe said that in the long run the company expects to repay the government and hoped that “we will be able to do something for our shareholders as well.”

Barnes & Noble, Inc ((BKS)) advanced 3.1% or 65 cents to $20.95 after the bookseller reported second quarter sales fell 5% to $1.16 billion from $1.22 billion a year ago. Net income in the quarter fell 20% to $12.3 million or 21 cents per diluted share compared to net income of $15.4 million or 27 cents per share a year ago.

Brandywine Realty Trust ((BDN)) the commercial real estate investment trust rose 1.6% or 16 cents to $9.92.

Citi Trends, Inc ((CTRN)) declined 11.6% or $3.28 to $24.95 after the clothing retailer said second quarter revenues fell 3.5% to $111.6 million from $115.7 million a year ago. Net loss in the quarter was $69,000 or break even per diluted share compared to net income of $2.8 million or 20 cents per share a year ago. The company also lowered its earnings outlook for the year.

Dick’s Sporting Goods, Inc ((DKS)) climbed 10.9% or $2.23 to $22.50 after the full-line sporting goods retailer reported second quarter sales rose 3.7% to $1.13 billion from $1.09 billion a year ago. Net income in the quarter fell 2.5% to $38.9 million or 33 cents per diluted share compared to net income of $39.9 million or 34 cents per share a year ago.

GameStop Corp ((GME)) fell 7.6% or $1.93 to $23.25 after the video game and entertainment software retailer reported second quarter sales fell 3.7% to $1.74 billion from $1.80 billion a year ago. Net income in the quarter fell 32.3% to $38.7 million or 23 cents per diluted share compared to net income of $57.2 million or 34 cents per share a year ago.

Google Inc ((GOOG)) advanced 2.7% or $12.32 to $456.29 after Goldman Sachs Group Inc added the search technology company to its “conviction buy list.” The investment banker was one of the co-manager of initial public offering about five years ago.

H. J. Heinz Company ((HNZ)) gained 2.0% or 65 cents to $38.60 after the maker of ketchup and other food products retailer reported first quarter sales fell 4.5% to $2.47 billion from $2.58 billion a year ago. Net income in the quarter fell 7% to $212.6 million or 67 cents per diluted share compared to net income of $229 million or 72 cents per share a year ago.

Hot Topic, Inc ((HOTT)) dropped 3.7% or 28 cents to $7.14 after the teen clothing retailer said second quarter revenues fell 5% to $157.8 million from $166.8 million a year ago. Net loss in the quarter was $3.2 million or 7 cents per diluted share compared to net loss of $450,000 or 1 cent per share a year ago.

JDS Uniphase Corporation ((JDSU)) fell 0.5% or 3 cents to $5.76 after the communications equipment maker said fourth quarter revenues fell 29% to $276.1 million from $390.3 million a year ago. Net loss in the quarter was $59.5 million or 28 cents per diluted share compared to net loss of $29.8 million or 13 cents per share a year ago.

Lancaster Colony Corporation ((LANC)) rallied 7.0% or $3.20 to $48.45 after the maker of specialty food products, glassware and candles reported diluted earnings per share from continuing operations were $1.01 compared to 37 cents a year ago.

Limited Brands, Inc ((LTD)) added 2.1% or 32 cents to $14.90 after the specialty retailer of women’s intimate and other apparel said second quarter revenues fell 10% to $2.07 billion from $2.28 billion a year ago. Net income in the quarter fell 27% to $74.3 million or 23 cents per diluted share compared to net income of $102 million or 30 cents per share a year ago.

NetApp, Inc ((NTAP)) the maker of storage computers dropped 3.8% or 89 cents to $22.00 after the first quarter sales declined 3.5% and replaced its chief executive.

PetSmart, Inc ((PETM)) plunged 10.3% or $2.33 to $20.24 after the pet food and products retailer said second quarter sales rose 5.6% to $1.31 billion from $1.24 billion a year ago. Net income in the quarter rose 5% to $39 million or 31 cents per diluted share compared to net income of $37.2 million or 30 cents per share a year ago.

Phillips-Van Heusen Corporation ((PVH)) slipped 1.0% or 37 cents to $34.85 after the clothing maker said second quarter revenues fell 5.6% to $529.3 million from $561 million a year ago. Net income in the quarter fell 9% to $26.6 million or 51 cents per diluted share compared to net income of $29.2 million or 56 cents per share a year ago.

School Specialty, Inc ((SCHS)) dropped 2.1% or 49 cents to $21.90 after the school products suppliers reported first quarter sales fell 12.8% to $330.4 million from $378.8 million a year ago. Net income in the quarter fell 15% to $28.4 million or $1.51 per diluted share compared to net income of $33.4 million or $1.75 per share a year ago.

Sears Holdings Corp ((SLD)) plunged 12% to $64.96 after it reported second quarter loss increased to $94 million or 79 cents a share compared to $65 million or 50 cents a share. The company lowered its debt and long term lease obligation by $416 million to $2.2 billion. Sales declined 10% to $10.6 billion and comparable same store sales declined 8.6%.

Synopsys, Inc ((SNPS)) fell 2.3% or 48 cents to $20.04 after the chip-design software maker said third quarter revenues rose 0.3% to $345.2 million from $344.1 million a year ago. Net income in the quarter fell 18% to $47.4 million or 32 cents per diluted share compared to net income of $57.7 million or 39 cents per share a year ago.