New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
July 9, 2014
11:33 EDTTCSContainer Store drops after quarter hurt by 'retail funk'
Shares of specialty storage and organizational product retailer The Container Store (TCS) are dropping after the company announced a first quarter loss per share that was steeper than expected. WHAT'S NEW: The Container Store reported a loss per share of (7c), compared to analysts' consensus forecast for a loss of (6c) per share. The company's Q1 revenue was $173.4M, which was slightly below a consensus projection of $174.21M. The Container Store cited a "retail funk" as the reason for why it experienced a same-store-sales decline of 0.8% in Q1. Still, the retailer said that the Q1 results will have very little impact on its FY14 earnings results. The Container Store foresees FY14 EPS to be 49c-54c, which came in below analysts' consensus forecast of 57c, and its revenue forecast of $820M-$830M also fell below analysts' consensus of about $831M. The retailer now sees its comparable store sales to be flat to slightly positive in Q2 and Q3 and to increase in the mid-single digit range in Q4. WHAT'S NOTABLE: During the company's earnings conference call, The Container Store said that it is "confident" that customer enthusiasm for its brand and employee morale are at all-time highs. The retailer said that the weather-driven extension of the elfa sale that it spoke to in Q4 also resulted in a shift of approximately $4M in sales at its TCS business into Q1, due to more merchandise deliveries being recorded into Q1. The company said that Q4 is seasonally its most important quarter, and in FY14 it expects to deliver nearly 70% of its FY14 EPS in Q4. ANALYST REACTION: Credit Suisse analyst Gary Balter lowered his price target on the Container Store to $32 from $45 after the company's Q1 report. Balter said that the retailer's weak comps and high valuation are not the ingredients for outperformance and he expects to stock to decline materially today as investors mull slower near-term growth. However, he thinks longer-term investors should use the weakness in the stock as a potential buying opportunity. Balter feels that traffic trends will improve into next year due to the management focusing on upping traffic along with the future roll-out of the POP! program. The firm maintains its Outperform rating on the stock. PRICE ACTION: During morning trading, shares of Container Store fell $2.83, or 10.5%, to $24.24.
News For TCS From The Last 14 Days
Check below for free stories on TCS the last two weeks.
Sign up for a free trial to see the rest of the stories you've been missing.
July 17, 2014
07:13 EDTTCSContainer Store initiated with a Hold at BB&T
July 16, 2014
17:34 EDTTCSContainer Store initiated with a Hold at BB&T
Subscribe for More Information
July 10, 2014
07:11 EDTTCSContainer Store risk/reward not compelling, says Morgan Stanley
Subscribe for More Information
July 9, 2014
12:38 EDTTCSContainer Store issues appear company specific, says Wells Fargo
Subscribe for More Information
12:30 EDTTCSOn The Fly: Midday Wrap
Stocks on Wall Street were moderately higher at midday, helped in part by better than expected earnings from Alcoa (AA), solid monthly numbers from the airlines sector, and a bounce from the two day losing streak that had seen the S&P lose 1% and the Nasdaq pullback by more than 2%. The market has been unable to gather any upside momentum and has moved in a narrow range throughout the morning, as investors await the release of the Fedís FOMC minutes. ECONOMIC EVENTS: The minutes from the Federal Open Market Committee meeting held June 17-18 are scheduled to be released at 2:00 pm ET. In China, the producer-price index declined 1.1% from a year earlier, compared with a consensus forecast for a 1% drop. China's consumer-price index rose 2.3%, below projections for a 2.4% gain. COMPANY NEWS: Alcoa swung to a second-quarter profit of 18c a share on an adjusted basis, beating the consensus estimate of 7c a share, as its revenue also topped expectations. The aluminum producer, whose report is widely considered to mark the start of an earnings season, said its transformation is in "high gear" and that its cost position continues to improve. The stock rose 5% near midday following its report. MAJOR MOVERS: Among the notable gainers was AeroVironment (AVAV), which develops a portfolio of products and services for unmanned aircraft and efficient energy systems. The stock rallied 14% after the company reported better than expected fourth quarter results. Also higher was Reynolds American (RAI), which rose more than 2.5% after the U.K.'s Daily Mail reported that British American Tobacco (BTI), which currently holds a 42% stake in Reynolds, is speculated to be "on the verge" of buying out the remainder of its U.S. peer that it does not already own. Among the noteworthy losers was IT infrastructure technology provider Gigamon (GIMO), which was downgraded by at least five firms and plunged 32% after the company lowered its Q2 revenue guidance, citing challenges closing deals. Also lower following its earnings reports was specialty storage and organizational product retailer The Container Store (TCS), which fell 10%. INDEXES: Near midday, the Dow was up 36.86, or 0.22%, to 16,943.48, the Nasdaq was up 18.93, or 0.43%, to 4,410.39, and the S&P 500 was up 4.59, or 0.23%, to 1,968.30.
11:33 EDTTCSContainer Store drops after quarter hurt by 'retail funk'
Subscribe for More Information
11:24 EDTTCSHigh option volume stocks
High option volume stocks: GIMO NEPT BPOP AVAV CBSO LL BOBE KWK GNC TCS
09:13 EDTTCSOn The Fly: Pre-market Movers
Subscribe for More Information
08:04 EDTTCSContainer Store price target lowered to $32 from $45 at Credit Suisse
Subscribe for More Information

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use