AEO, ARO, KSS, JCP, ANSS, ELMG, SMSI, KNDL Popular Stocks
U.S. stocks climbed Thursday as the Dow Jones Industrial Average increased 170 points to 9972, the S&P 500 rose 16 points to 1063 and the Nasdaq Composite gained 45 points to 2101.
Shares of many retailers were falling as same-store sales for October came in below expectations, dragged down by very poor performance from teen retailers. American Eagle Outfitters Inc. (NYSE:AEO, $15.71, -$2.15, -12.04%) reported a 5% drop in October same-store sales, when analysts had expected a 1.7% increase and the retailer put its third-quarter views below expectations as well. Aeropostale Inc. (NYSE:ARO, $32.78, -$5.25, -13.80%), Kohl’s Corp. (NYSE:KSS, $55.69, -$0.85, -1.50%) and J.C. Penney Co. (NYSE:JCP, $30.19, -$1.89, -5.89%) also missed expectations for same-store sales.
Smith Micro Software Inc. (NASDAQ:SMSI, $6.76, -$2.31, -25.47%) posted third-quarter revenue below Street expectations and cut its revenue view for the year. The software products maker pointed to negative economic environment and limited visibility in projecting fourth-quarter results. There were some “rumblings” in September about a potentially weak third-quarter performance, even after a great June quarter, leading people to take profits, Jesup & Lamont analyst Kevin Dede said.
Ansys Inc. (NASDAQ:ANSS, $38.98, -$2.49, -6.00%) delivered a solid third quarter, saying its engineering software is proving resilient despite the global construction downturn. But CEO Jim Cashman said the company still doesn’t know the timing nor the shape of a recovery and non-GAAP forecasts looked hesitant and mixed. For the fourth quarter, the revenue range was below Street views, but earnings hit expectations at the high end. That kept 2009 revenue below consensus too, but the earnings range was all above. And for 2010, revenue growth looked in line while non-Gaap EPS growth looked a bit short. Trying to make sense of that, shares fell.
Kendle International Inc. (NASDAQ:KNDL, $15.65, -$0.83, -5.04%) reported better-than-expected third-quarter earnings per share and in-line revenue. But results this quarter were skewed by the resolution of an insurance claim, resulting in a net recovery of $3.4 million, Jefferies noted. “Though a superficially cheap stock, KNDL lacks a fundamental catalyst to entice purchase,” Jefferies said.
EMS Technologies Inc.’s (NASDAQ:ELMG, $12.70, -$4.31, -25.34%) third-quarter results missed expectations as the wireless communication company’s aeronautical segment continues to slow. The company also forecast 2009 earnings below analysts’ estimates and said the fourth quarter will be less profitable than the third quarter. CEO Paul Domorski said the company is rolling out new products in aeronautical connectivity and satellite tracking, where it still has the leading position.
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