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Earnings highlights: B&N, Deere, Heinz, Home Depot, HP, Sears, Target ...

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

Continue reading Earnings highlights: B&N, Deere, Heinz, Home Depot, HP, Sears, Target ...

Saks (SKS) and Nordstrom (JWN) out of fashion at Credit Suisse

Things aren't looking so luxurious for the shareholders of Nordstrom, Inc. (NYSE: JWN) and Saks Inc. (NYSE: SKS) today. Shares of both of these upscale department-store chains are seeing red today following negative words from Wall Street.

As Eric Buscemi noted this morning, JWN was cut to "underperform" from "neutral" at Banc of America/Merrill Lynch. Nordstrom was also sliced to "neutral" from "outperform" at Credit Suisse, citing valuation and concerns about the environment for mall anchors. Credit Suisse did maintain its price target of $22.

Continue reading Saks (SKS) and Nordstrom (JWN) out of fashion at Credit Suisse

Earnings highlights: HP, Gap, Saks, Hormel, Barnes & Noble and more

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

Continue reading Earnings highlights: HP, Gap, Saks, Hormel, Barnes & Noble and more

Dick's falls, Saks rises on better-than-expected Q1 results

Dick's Sporting Goods Inc. (NYSE: DKS) reported higher-than-expected first quarter results Tuesday, while Saks Inc. (NYSE: SKS) posted a smaller-than-expected net loss for the first quarter.

For the first quarter ended May 2, Dick's posted a profit of $10.2 million, or $0.11 per share excluding items. Revenue increased 5% from a year ago to $959.7 million. Analysts surveyed by Thomson Reuters had expected earnings of $0.07 a share on revenue of $914.3 million.

Continue reading Dick's falls, Saks rises on better-than-expected Q1 results

The week in preview: Eye on apparel and tech earnings

Last week we got a good look at how the apparel retailers have been doing when JCPenney Inc. (NYSE: JCP), Kohl's Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), and Urban Outfitters Inc. (NASDAQ: URBN) all reported better-than-expected earnings for the most recent quarter. On the other hand, Abercrombie & Fitch Co. (NYSE: ANF), Eddie Bauer Holdings Inc. (NASDAQ: EBHI), Liz Claiborne Inc. (NYSE: LIZ), and Macy's Inc. (NYSE: M) reported quarterly losses, reflecting the ongoing reluctance of consumers to spend.

Continue reading The week in preview: Eye on apparel and tech earnings

The week in preview: Eye on Marvel, KBR, First Solar, Deckers and more

Analysts surveyed by Thomson Reuters expected the parade of earnings declines to continue into the final week of February, with Martha Stewart Living Omnimedia Inc. (NYSE: MSO), Nordstrom Inc. (NYSE: JWN), Home Depot Inc. (NYSE: HD), Wynn Resorts Ltd. (NASDAQ: WYNN), Macy's Inc. (NYSE: M), DreamWorks Animation SKG Inc. (NYSE: DWA), Limited Brands Inc. (NYSE: LTD), Target Corp. (NYSE: TGT), Royal Bank Of Canada (NYSE: RY), Del Monte Foods Co. (NASDAQ: DLM), Kohl's Corp. (NYSE: KSS), Washington Post Co. (NYSE: WPO), Dell Inc. (NASDAQ: DELL), Gap Inc. (NYSE: GPS), Campbell Soup Co. (NYSE: CPB), RadioShack Corp. (NYSE: RSH), and H.J. Heinz Co. (NYSE: HNZ) all expected to post lower earnings for the most recent quarter. Office Depot Inc. (NYSE: ODP), Saks Inc. (NYSE: SKS), and Cooper Tire & Rubber Co. (NYSE: CTB) are expect to have swung to a loss.

Continue reading The week in preview: Eye on Marvel, KBR, First Solar, Deckers and more

2008 Trades Gone Bad #1: Going long the specialty retailers

If you made a bet on the specialty retailers leading up to the first $600 taxpayer rebate stimulus package, you got hammered.

Talk about a government plan backfiring big time.

That $300 billion in checks that fell out of the sky from government helicopters back in the March to May timeframe didn't find its way to the malls at all.

Instead, people paid down credit card debt, and tuition, medical and other bills, leaving little for spending on non-essentials.

The result was a litany of store closings nationwide, with several old-line, brand-name retailers going out of business.

It's game over for names like Circuit City (OTC: CCTYQ), Cache (NASDAQ: CACH), Talbots (NYSE: TLB), J. Jill, Wickes Furniture, Levitz, Bombay, Linens 'n Things, Movie Gallery, Wilson Leather, KB Toys and The Sharper Image.

Traders that leveraged into darling names, like hedge fund idol Eddie Lampert's Sears Holdings Corp. (NASDAQ: SHLD), got smoked. Shares of SHLD were trading at $105 when the checks when out. Today the stock is around $40.

Even Costco (NASDAQ: COST) -- the obvious slam dunk, aside from Wal-Mart (NYSE: WMT) -- got slammed, falling from $75 to $45 following the so-called stimulus package.

Continue reading 2008 Trades Gone Bad #1: Going long the specialty retailers

Saks adopts poison pill: Why?

A few days after Mexican billionaire Carlos Slim reported an 18% stake in the company, Saks (NYSE: SKS) adopted a poison pill, disclosed in a filing with the SEC.

Under the terms of the "shareholder rights plan," if Carlos Slim or anyone else acquires a stake of 20% in the company, other shareholders will be able to acquire shares at half price. The company said that the plan will "impose a significant penalty upon any person or group which acquires beneficial ownership of 20% or more of the Company's outstanding common stock without the prior approval of the Board of Directors."

Shareholders should be appalled. Shares of Saks closed at $4 on Wednesday, down from a 52-week high of $22.19. In 1993, the stock traded north of $15 per share.

So shareholders should not be happy with any plan that gives the company's current management and directors more control over the future: Their track record is one of miserable failure. Given Mr. Slim's track record of creating enormous wealth, shareholders would likely be better off with whatever plan he has up his sleeve.

The Wall Street Journal reports (subscription required) that "Saks spokeswoman Julia Bentley declined to comment on the timing of the announcement, but said that Saks had a rights plan for more than a decade that expired in March 2008."

It must be illustrative to look at the returns that shareholders have received over that period.

The week in preview: High hopes for solar, not so much for home improvement

Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.

Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.

Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.

Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.

Continue reading The week in preview: High hopes for solar, not so much for home improvement

Analyst calls: GS, ITG, HOKU, CME, QSII, TUP, ABFS, PSE, RAX

Analyst upgrades:

  • Wachovia upgraded shares of The Goldman Sachs Group Inc (NYSE: GS) to Outperform from Market Perform on expectations for greater pricing power given Goldman's position as the largest remaining independent securities firm.
  • Keefe Bruyette upgraded Investment Technology Group Inc (NYSE: ITG) to Outperform from Market Perform as they believe the company will take market share with the reshaping of the large wire-house brokerage community. The company's target was raised to $37 from $33.
  • Broadpoint raised Hoku Scientific Inc (NASDAQ: HOKU) to Buy from Neutral as they believe the contract with Tianwei New Energy reduces financing risk.
  • ACE Ltd (NYSE: ACE) and The Travelers Companies Inc (NYSE: TRV) were upgraded to Buy from Neutral at Goldman.
  • Axcelis Technologies Inc (NASDAQ: ACLS) was upgraded to Buy from Hold and Evergreen Solar Inc (NASDAQ: ESLR) was lifted to Hold from Sell at Citigroup.

Analyst downgrades:

Continue reading Analyst calls: GS, ITG, HOKU, CME, QSII, TUP, ABFS, PSE, RAX

Earnings highlights: Hershey, Heinz, Burger King, Foot Locker, Saks and others

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

For more earnings highlights from this week, see: Home Depot, Lehman, Hewlett-Packard, Gap, BJ's and others

Upcoming quarterly reports include Big Lots (NYSE: BIG), Borders (NYSE: BGP), Rio Tinto (NYSE: RTP), Tivo (NASDAQ: TIVO), Novell (NASDAQ: NOVL), Dell (NASDAQ: DELL), Sears (NASDAQ: SHLD), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

Saks (SKS) tumbles on Q2 losses

SKS logoSaks (NYSE: SKS - option chain) shares are falling today after the company reported second-quarter losses of $31.7 million, or $0.23 a share, this morning, less than analysts' estimates of -0.17. The company also forecast lower operating margins. If high-end retailers are hurting, then there is definitely some behavior of the average American consumer that is changing as well. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SKS.

This morning, SKS opened at $10.60. So far today the stock has hit a low of $9.60 and a high of $10.61. As of 12:10, SKS is trading at $9.92, down $1.30 (-11.6%). The chart for SKS looks neutral while S&P gives SKS a positive 4 STARS (out of 5) buy ranking.

For a bearish hedged play on this stock, I would consider a November bear-call credit spread above the $12.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in three months as long as SKS is below $12.50 at November expiration. Saks would have to rise by more than 26% before we would start to lose money. Learn more about this type of trade here.

SKS hasn't been above $120 since late June and has shown resistance around $12 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in SKS.

The week in preview: Expectations for home improvement, tech, apparel

Rival home improvement chains Home Depot Inc. (NYSE: HD) and Lowe's Companies Inc. (NYSE: LOW) are scheduled to report quarterly results this week. Not surprisingly, given the ongoing housing slump, analysts surveyed by Thomson Financial on average expect both companies to post earnings lower than in the same period a year ago. For Home Depot, that's 61 cents per share, down 20.8%, and for Lowe's, 56 cents per share, down 16.4%. Meanwhile, cabinet maker American Woodmark Corp. (NASDAQ: AMWD), for whom Home Depot and Lowe's are major distributors, is also expected to report lower earnings: 11 cents per share, down 67.6%.

The presidential campaigns have prompted much discussion of energy policy and alternative energy sources. Some solar-energy-related concerns are scheduled to report this week, and expectations seem to be high. Trina Solar Ltd. (NYSE: TSL) is expected to report 81 cents per share earnings, up 67.9%; ReneSola Ltd. (NYSE: SOL) is expected to post earnings of 32 cents per share, up 62.5%; and Suntech Power Holdings Co. (NYSE: STP) is expected to have earnings of 32 cents per share, up 21.9%. Even China Sunergy Co. Ltd. (NASDAQ: CSUN) is expected to have swung to a profit of 3 cents per share, from a per-share loss of 14 cents a year ago.

Continue reading The week in preview: Expectations for home improvement, tech, apparel

Company nicknames: Neiman Marcus -- If you have to ask about price ...

This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Needless Markup below in the comments.

Neiman Marcus may be the most successful upscale retail department chain that selected shoppers love to hold a grudge against.

The chain caters to primarily female, upper-income and upper-middle shoppers, and features designer lines that rival boutique (and beyond) price levels.

Further, while some of the products are decidedly exclusive, some are not or appear to not be, according to shoppers, but the prices of these items remain in the stratosphere, and it is for this reason that the store was tagged with the nickname "Needless Markup."

Here's a classic example. About a year ago Marie Lang, sister of yours truly, was searching for a leather shoulder bag. She found a medium brown, designer bag she liked for $1,200 at Neiman Marcus. However, being a discerning/critical comparison shopper, Marie of course took a few days to scout the competition.

The result? She found a comparable shoulder bag at Bloomingdale's for $595. Had she been willing to take a slightly smaller bag, she could have secured one for $395.

Continue reading Company nicknames: Neiman Marcus -- If you have to ask about price ...

Earnings highlights: Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others

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

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

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Last updated: November 10, 2009: 12:17 AM

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