Rocky Mountain Chocolate Factory's (NASDAQ: RMCF) first fiscal quarter release had an undeniable theme running throughout. No, it wasn't a happy promo about its delicious confections. Instead, it was the very familiar issue of the recession. I guess the company's premium chocolates aren't wholly economically defensive in nature after all.

According to the results, sales declined by over 5%. Same-store franchised revenues dropped well over 6%. Earnings per diluted share were cut by 25% to 12 cents. Things are rough for Rocky Mountain.

Continue reading Rocky Mountain's Q1 suffers from recession fever

Rocky Mountain's Q1 suffers from recession fever originally appeared on BloggingStocks on Fri, 10 Jul 2009 08:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Acuity Brands Inc. (NYSE: AYI) reported lower Q1 earnings that still beat analysts' expectations.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported unimpressive Q3 results but shares rose anyway.
• Chevron Corp. (NYSE: CVX) warned of lower Q4 earnings due to lower oil prices and narrow margins.
• Constellation Brands Inc. (NYSE: STZ) Q3 earnings tumbled on on restructuring costs and weaker sales.
• Family Dollar Stores Inc. (NYSE: FDO) topped Q1 earnings expectations as consumers seek bargains.
• Intel Corp. (NASDAQ: INTC) lowered its Q4 revenue guidance once more due to lower demand.
• LDK Solar Co. (NYSE: LDK) cut its Q4 revenue outlook as clients asked for delayed shipments.
• Manitowoc Co. (NYSE: MTW) said profit will likely come in at the low end of its previous guidance range.
• Monsanto Co. (NYSE: MON) reported strong Q1 numbers and raised its full-year guidance.
• Neogen Corp. (NASDAQ: NEOG) posted its 63rd-consecutive profitable quarter, helped by an acquisition.
• Rocky Mountain Chocolate Factory (NASDAQ: RMCF) posted dismal Q3 numbers on economic downturn.
• Sears Holdings Corp. (NASDAQ: SHLD) higher-than-expected December sales prompted raised guidance.
• Supervalu Inc. (NYSE: SVU) reported a Q3 loss because of hefty one-time charges, but topped estimates.
• Walmart Stores Inc. (NYSE: WMT) cut its Q4 forecast after lower-than-expected December sales.
• Williams-Sonoma Inc. (NYSE: WSM) forecast lower-than-expected Q4 earnings on weak December sales.

For more earnings highlights, see Time Warner, Satyam, Google, KB Home, Mosaic and others

Upcoming earnings releases include Alcoa Inc. (NYSE: AA), Infosys (NASDAQ: INFY), Linear Technologies (NASDAQ: LLTC) , Xilinx (NASDAQ: XLNX), Genentech (NYSE: DNA), Intel (NASDAQ: INTC), Marshall & Ilsley (NYSE: MI), Sealy (NYSE: ZZ), Johnson Controls (NYSE: JCI).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Intel, Walmart, Chevron, Family Dollar, Monsanto and others originally appeared on BloggingStocks on Sat, 10 Jan 2009 16:10:00 EST. Please see our terms for use of feeds.

Poor Rocky Mountain Chocolate Factory (NASDAQ: RMCF). Chocolate is supposed to be sweet, delicious, fun! It's supposed to be a driver of shareholder value. Alas, in the third quarter, chocolate did nothing for shareholders of this company.

So where do I start? Revenues decreased 15%. Comps at franchised locations dipped over 8% (don't you hate it when comps do that?). Net income on a dollar basis dropped 33%. And earnings per share on a diluted basis declined 26% to $0.14. Do you notice a trend here? From the top to the bottom lines, it seems like everything is headed in one depressing direction. Yep, the economy hasn't been kind to the company's gourmet confections. And I don't necessarily see a quick turnaround for Rocky Mountain. Yes, it is still opening stores and is apparently optimistic about the future. Still, I think it's going to be a long journey back to growth. Hey, if Hershey (NYSE: HSY) is having a tough time with its stock price, you can imagine how Rocky Mountain's management is feeling. The earnings release does mention work on a new business model for locations in smaller markets, as well as a focus on return-on-invested-capital in these territories. A laudable goal, certainly, and I like some of the co-branding concepts that were also touched upon. Doesn't necessarily change my bearish thesis, however.

Continue reading Rocky Mountain Chocolate Factory sees a batch of bad data in Q3

Rocky Mountain Chocolate Factory sees a batch of bad data in Q3 originally appeared on BloggingStocks on Fri, 09 Jan 2009 14:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Advance Auto Parts Inc. (NYSE: AAP) lowered its Q3 earnings forecast below analysts' estimates.
• Advanced Medical Optics Inc. (NYSE: EYE) lowered guidance led to an analyst's downgrade.
• Alcoa Inc. (NYSE: AA) fell well short of Q3 estimates on lower demand and falling prices.
• Bank of America Corp. (NYSE: BAC) Q3 profits fell more than estimated, and it cut its dividend.
• Brunswick Corp. (NYSE: BC) forecast a full-year loss and accelerated layoffs.
• Costco Wholesale Corp. (NASDAQ: COST) Q4 earnings just missed estimates thought revenues were up.
• Dollar Tree Inc. (NASDAQ: DLTR) earnings results and growth prospects impressed one analyst.
• eBay Inc. (NASDAQ: EBAY) earnings may be diluted by its acquisition of Bill Me Later.
• Ecolab Inc. (NYSE: ECL) earnings prospects led to an analyst's downgrade.
• General Electric Co. (NYSE: GE) results were in line with low expectations, and dividends will be sustained.
• General Mills Inc. (NYSE: GIS) earnings prospects for 2009 impress Jim Cramer.
• Host Hotels & Resorts Inc. (NYSE: HST) Q3 earnings tumbled while revenue slipped.
• IBM Corp. (NYSE: IBM) surprised Wall Street by offering strong Q3 preliminary results.

Continue reading Earnings highlights: GE, IBM, Bank of America, Alcoa, Yum! Brands and others

Earnings highlights: GE, IBM, Bank of America, Alcoa, Yum! Brands and others originally appeared on BloggingStocks on Sat, 11 Oct 2008 11:40:00 EST. Please see our terms for use of feeds.

I remember when Rocky Mountain Chocolate Factory (NASDAQ: RMCF) was a cool stock. Unfortunately, that was then and this is now. The economy is horrible, and it's getting worse. Rocky Mountain is not the company with which to ride the storm out.

The third-quarter earnings report, issued on Thursday, showed terrible data. Revenues declined well over 16% to $6.3 million. Earnings per diluted share took a big drop of 30%, coming in at $0.14. And it doesn't stop there. Comps for franchised outlets dipped over 2%. Same-store pounds of products bought by franchisees dropped 10%. Let's face it, people are cutting back on Rocky Mountain's confections. I'm sure they're delicious, but it just doesn't matter. Rocky Mountain is going to continue to struggle as we make our way through this macro mess. Management points out that the stock does pay a dividend of $0.10 per quarter. That gives a yield, as of Thursday's closing price, of just about 6%.

That's not bad, and I suppose if you're a long-term value investor who has extremely solid patience, you might want to take a look at Rocky Mountain's shares. I mean, we all know that equities are pretty irrationally priced these days. But, would I step in and buy the stock as any sort of defensive position for my portfolio? No way. I think it's headed lower. And besides, if I wanted to step in and buy something related to confectionery pleasures, I'd probably consider Hershey (NYSE: HSY) first. Not only am I a big fan of the Reese's peanut butter cup, but I perceive the portfolio controlled by Hershey to be a lot more valuable in these troubled times than Rocky Mountain's line of products. Let's hope all the Halloween trick-or-treaters out there are gearing up to help out the confection industry at the end of this month by demanding a whole lot of treats. Goodness knows, the market has already had its share of tricks this year.

Disclosure: I don't own any company mentioned; positions can change at any time.

I wouldn't buy Rocky Mountain Chocolate Factory originally appeared on BloggingStocks on Fri, 10 Oct 2008 14:36:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcoa Inc. (NYSE: AA) Q2 earnings decline on materials costs but beat analysts estimates (see transcript).
• Apollo Group Inc. (NASDAQ: APOL) solid Q3 results were accompanied by a share buyback program.
• Boeing Co. (NYSE: BA) warned that Q2 results will include a delay-related charge of 22 cents per share.
• Cash America International Inc. (NYSE: CSH) predicted Q2 earnings above previous guidance.
• EZcorp Inc. (NASDAQ: EZPW) predicted better-than-expected Q3 results due to strong sales.
• Family Dollar Stores Inc. (NYSE: FDO) beat Q3 expectations and raised its Q4 guidance.
• Flow International Corp. (NASDAQ: FLOW) swung to a better-than-expected Q4 profit on strong demand.
• General Electric Co. (NYSE: GE) reported mixed Q2 results and offered an uninspiring Q3 outlook (transcript).
• Helen of Troy Ltd. (NASDAQ: HELE) Q1 results were colored by write-downs and other charges.
• International Speedway Corp. (NASDAQ: ISCA) Q2 earnings soared while revenue slipped.
• Levis Strauss Q2 profitability plunged due to declining sales and higher administrative costs.
• Marriott International Inc. (NYSE: MAR) topped Q2 estimates but lowered its guidance (see transcript).

Continue reading Earnings highlights: GE, Alcoa, Marriott, Pepsi Bottling, Wal-Mart, Boeing and others

Earnings highlights: GE, Alcoa, Marriott, Pepsi Bottling, Wal-Mart, Boeing and others originally appeared on BloggingStocks on Sat, 12 Jul 2008 12:40:00 EST. Please see our terms for use of feeds.

Chocolate, champagne and diamond...stocks for your Valentine this year originally appeared on BloggingStocks on Fri, 09 Feb 2007 16:00:00 EST. Please see our terms for use of feeds.