Earlier this week, aluminum giant Alcoa (AA) unofficially kicked off the Q2 2013 earnings season – posting both hits and misses. After the closing bell on Monday, the company reported a $119 million second quarter loss due to weak aluminum prices, putting the bellwether’s EPS at a mere 7 cents per share. Alcoa’s EPS did, however, manage to beat analysts’ estimates by one cent. And while Wall Street has been somewhat pessimistic about this earnings season, Monday’s results somewhat managed to lift investor optimism .
At the end of this week, two more bellwethers are slated to report their Q2 earnings – JPMorgan Chase (JPM) and Wells Fargo & Co. (WFC).
Megabanks Earnings on TapAs talks of Fed tapering continue to dictate the markets, the banking industry has come under the spotlight once again as investors speculate how exactly scaling back the central bank’s massive bond-buying program will affect the sector. And though analysts are mixed as to how exactly banks will perform, earnings expectations are quite low for the industry.
Hot Heal Care Stocks To Own Right Now: Herman Miller Inc.(MLHR)
Herman Miller, Inc. engages in the research, design, manufacture, and distribution of interior furniture systems, products, and related services worldwide. It also provides modular systems under the Action Office, Canvas Office Landscape, Ethospace, Resolve, My Studio Environments, and Vivo Interiors brand names; seating products under the Embody, Aeron, Mirra, Setu, Celle, Equa, and Ergon brand names; and storage products under the Meridian and Tu brand names. In addition, the company offers wooden casegoods under the Geiger brand name; freestanding furniture products under the Abak, Intent, Sense, and Envelop brand name; and ergonomic solutions. It markets its products for office, healthcare, industrial, educational, and residential settings through its sales staff, own dealer network, independent dealers and retailers, and independent contract office furniture dealers, as well as through Internet. The company was founded in 1905 and is based in Zeeland, Michigan.
- [By Ben Levisohn]
Shares of HNI Corp. have gained 4.9% to $35.17 at 1:45 p.m., while Steelcase (SCS) has risen 0.8% to $16.93, Knoll (KNL) has advanced 2.5% to $18.74 and Herman Miller (MLHR) has ticked up 0.3% to $30.57.
- [By John Kell and Tess Stynes var popups = dojo.query(“.socialByline .popC”); p]
Herman Miller Inc.(MLHR) said its fiscal third-quarter earnings rose 18% on broad sales growth and stronger margins. The office-furniture company projected fiscal-fourth-quarter results that were mostly higher than expectations. Shares rose 6.2% to $30.50 premarket.
- [By Jake L’Ecuyer]
Shares of Herman Miller (NASDAQ: MLHR) got a boost, shooting up 11.96 percent to $32.14 after the company reported in-line FQ3 adjusted earnings. The company expected Q4 earnings of $0.43 to $0.47 per share on revenue of $485 million to $505 million. However, analysts were projecting earnings of $0.43 per share on revenue of $487.5 million.
Hot Heal Care Stocks To Own Right Now: Primo Water Corporation(PRMW)
Primo Water Corporation, together with its subsidiaries, provides three- and five-gallon purified bottled water, self-serve filtered drinking water, water dispensers, and carbonating beverage appliances in the United States and Canada. The company?s Primo Water segment sells multi-gallon purified bottled water and self-serve filtered drinking water vending service through retailers in the United States and Canada. It offers its services through point of purchase display racks or self-serve filtered water vending displays, and recycling centers. Its Primo Dispensers segment sells water dispensers that are designed to dispense Primo and other dispenser-compatible bottled water. This segment engages in dispensers sales primarily through retailers. The company also offers home beverage appliances, flavor concentrates, carbon dioxide cylinders, and accessories used with the appliances to make various cold beverages. As of December 31, 2011, its exchange and refill services wer e offered in each of the contiguous United States and in Canada at approximately 23,600 combined retail locations. Primo Water Corporation was founded in 2004 and is headquartered in Winston-Salem, North Carolina.
- [By Rick Munarriz]
SodaStream bears pointed to Primo Water’s (NASDAQ: PRMW ) FlavorStation as a potential SodaStream slayer two years ago. The bottled water distributor had plenty of retail connections for its flagship H2O but it only managed to get one major retailer — a home-improvement superstore chain, at that — to sell FlavorStation carbonators and flavors.
- [By Roberto Pedone]
Primo Water (PRMW) is a provider of multi-gallon purified bottled water, self-serve filtered drinking water, water dispensers and carbonating beverage appliances sold through major retailers in the U.S. and Canada. This stock closed up 9.6% to $2.16 in Thursday’s trading session.
Thursday’s Range: $1.97-$2.20
52-Week Range: $0.69-$2.20
Thursday’s Volume: 329,000
Three-Month Average Volume: 145,397
From a technical perspective, PRMW ripped higher here right above some near-term support at $1.85 with heavy upside volume. This stock broke out above some near-term overhead resistance at $2.14 and into new 52-week-high territory, which is bullish technical price action.
Traders should now look for long-biased trades in PRMW as long as it’s trending Thursday’s low of $1.97 and then once it sustains a move or close above its new 52-week high at $2.20 and above some past resistance at $2.28 with volume that hits near or above 145,397 shares. If we get that move soon, then PRMW will set up to enter new 52-week-high territory, which is bullish price action. Some possible upside targets off that move are its next major overhead resistance levels at $3 to $3.11.
Hot Heal Care Stocks To Own Right Now: Nesscap Energy Inc (NCE)
Nesscap Energy Inc. is engaged in developing, manufacturing and marketing of products (ultracapacitors) that store energy for power delivery systems, which are used in transportation, industrial power, renewable energy and other consumer industries. Ultracapacitors are used as energy storage devices for high power applications and are characterized by high power density, long operational lifetime and quick charging and discharging capability. The Company’s range of products, from single-cell ultracapacitor products to multi-cell modules, is designed for reliable energy storage and power platforms. The Company’s offers multi-cell modules with operating voltages of five volt, 16 volt, 48 volt, 64 volt, 86 volts, and 125 volt. The Company’s small-sized EDLC cells range from 3 frequency-50 frequency in capacitance with operating voltages ranging from 2.3 volt to 2.7 volt. Advisors’ Opinion:
- [By John McCamant]
Phase III trials for NKTR-102 for breast cancer, are due by year-end. NKTR-181 is a new chemical entity (NCE) painkiller developed by NKTR that does not result in the high often associated with addictive and life-threatening chronic opioid use.
Hot Heal Care Stocks To Own Right Now: American Public Education Inc.(APEI)
American Public Education, Inc., together with its subsidiary, American Public University System, Inc., provides online postsecondary education focusing on the needs of the military and public service communities. The company operates through two universities, American Military University (AMU) and American Public University (APU) serving approximately 110,000 students in the United States and internationally. The universities share a common faculty and curriculum, which includes 87 degree programs and 69 certificate programs in disciplines related to national security, military studies, intelligence, homeland security, criminal justice, technology, business administration, education, nursing, and liberal arts. The company was founded in 1991 and is headquartered in Charles Town, West Virginia.
- [By Jake L’Ecuyer]
Leading and Lagging Sectors
Non-cyclical consumer goods & services shares climbed around 0.22 percent in trading on Friday. Leading the sector was strength from American Public Education (NASDAQ: APEI) and XO Group (NASDAQ: XOXO). In trading on Friday, telecommunications services shares were relative laggards, down on the day by about 0.41 percent.
- [By James Brumley]
American Public Education (APEI) has been one of the biggest victims of the DOE’s partial shutdown. The 41,000 individual online classes scheduled to begin a few days ago were reduced by 13,000 when many military and government employees lost their tuition assistance as of October 1st.
Hot Heal Care Stocks To Own Right Now: Bed Bath & Beyond Inc.(BBBY)
Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestic merchandise, such as bed linens and related items, bath items, and kitchen textiles; and home furnishings, including kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and certain juvenile products. The company also offers giftware, household products, and health and beauty care items; and infant and toddler merchandise. It operates stores under the names of Bed Bath & Beyond (BBB), Christmas Tree Shops (CTS), Harmon and Harmon Face Values (Harmon), and buybuy BABY. As of August 27, 2011, the company had a total of 1,155 stores, including 986 BBB stores, 70 CTS stores, 54 buybuy BABY stores, and 45 Harmon stores in 50 states, the District of Columbia, Puerto Rico, and Canada. It also operates two stores under the name of Home & More in the Mexico City through a joint venture. Bed Bath & Beyond Inc. was foun ded in 1971 and is based in Union, New Jersey.
- [By Jonas Elmerraji]
Nearest Resistance: $70
Nearest Support: $66
Catalyst: Q2 Earnings
Earnings were this week’s driver for upside in shares of retail chain Bed Bath & Beyond (BBBY). The firm announced that it earned second-quarter profits of $1.17 a share, besting analysts’ consensus guess of $1.14. Besides better earnings numbers, sales growth climbed more than expected at BBBY’s stores, giving it a best-in-breed story at the same time investors are starting to get anxious about retail.
BBBY showed traders a minor breakout through $66 on Wednesday, clearing the way for a retest of prior resistance at $70. If Bed Bath & Beyond can break above that $70 price ceiling, it’s a buy. Until then, it’s not a high-probability trade.
Must Read: 5 Hated Earnings Stocks You Should Love
- [By Grace L. Williams]
It’s countdown time for Bed Bath & Beyond (BBBY) and we wonder: will another retailer bite the dust (bin)?
It wouldn’t be much of a shock. In an article earlier today, MarketWatch reporter Andria Cheng notes that industry rivals including Pier 1 Imports (PIR), the Container Store (TCS) and Williams-Sonoma (WSM) lowered their profit or sales outlooks. Cheng also notes that Bed Bach & Beyond had cut its outlook in June to $1.08 a share from $1.16. She continues:
Morgan Stanley’s home-furnishings survey conducted in August and released Monday found almost 80% of shoppers at Bed Bath & Beyond in the past three months listed the company’s 20% off an-item coupon as what drove them to the store, much higher than other factors including selection or quality of merchandise
What does that mean for Bed Bath & Beyond, which will release its financial results after the close today? Nomura’s Jessica Schoen Mace doesn’t think Bed Bath & Beyond will beat the Street Consensus–she forecasts earnings-per-share of $1.13, a penny below the average analyst prediction–but she’s not completely down on the company. Schoen Mace writes:
We are expecting revenue to increase 2.7% in the second quarter to $2.9 billion. This includes a comp increase of 1.5% and a square-footage increase of 1.4%, or approximately six new stores. This includes three Bed Bath & Beyond stores, one Cost Plus World Market store, one buybuy BABY store, and one Christmas Tree Shop / andThat! store. We continue to expect the company to remain on track to open at least 22 store locations before the end of the year.
Shares of Bed Bath & Beyond have dropped 1.2% to $62.94 at 2:58 p.m. today, while Pier 1 has fallen 1.1% to $12.08, the Container Store has declined 0.5% to $23.21 and Williams-Sonoma is off 0.8% at $67.05 this afternoon.
- [By Andrew Marder]
Over the last 12 months, Bed Bath & Beyond’s (NASDAQ: BBBY ) stock has fallen 16%. The bulk of that drop came early in 2014, when the company announced third-quarter results and dropped its full fiscal-year earnings forecast. From that point, Bed Bath & Beyond’s stock price has continued to slip from $70 to $61. The stock is now trading at a paltry — for today’s market — 13 times trailing earnings.
Hot Heal Care Stocks To Own Right Now: Nikon Corp (NINOF)
NIKON CORPORATION is mainly engaged in the manufacture and sale of image and video equipment. The Company operates in four business segments. The Precision Equipment segment offers semiconductor exposure apparatus and liquid crystal (LC) exposure apparatus. The Image segment provides digital single-lens reflex (SLR) cameras, compact digital cameras and interchangeable lens. The Instruments segment offers microscopes, measuring machines and semiconductor inspection equipment. The Others segment provides LC photomask substrates and optical components. As of March 31, 2013, the Company has 87 subsidiaries and 10 associated companies. Advisors’ Opinion:
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) — Japanese stocks opened lower Thursday, as gains for the yen and losses for Wall Street conspired to drive the Nikkei Stock Average (JP:NIK) down 1.2% to 15,333.35, extending Wednesday’s 0.6% loss. The Topix fell 0.7%, with the U.S. dollar (USDJPY) slipping to 102.46 yen, down from around ¥102.80 at the start of the previous session, but off its lows in late Wednesday trade. Electronics firms and other techs helped lead the loss, with Sony Corp. (JP:6758) (SNE) falling 1.4%, Nikon Corp. (JP:7731) (NINOF) off 2.4%, and Alps Electric Co. (JP:6770) 1.8% lower. The Nikkei Asian Review reported Thursday that Japan looked set to post its first trade deficit for electronics goods this year. Shares of Yahoo Japan Corp. (JP:4689) (YAHOF) lost 1.4%, even as Bloomberg reported the firm was offering its stake in market-research firm Macromill Inc. (JP:3730) to U.S. private-equity firm Bain Capital at a premium to its most recent close. Shares of Macromill were untraded. Among gainers, Nippon Telegraph & Telephone Corp. (JP:9432) (NTT) rose 2.1%, following a 1.1% gain for its U.S.-listed shares.
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) — With the yen holding on to its gains and investors cautious as earnings season kicks off, Japanese stocks slid lower Friday after closing the previous day with some late-session gains. The Nikkei Stock Average (JP:NIK) fell 0.9% to 14,358.28, with the Topix down 0.8%, as the dollar bought 97.36 yen, little changed from 24 hours earlier. The relatively strong yen weighed on some names with high global exposure, as Sharp Corp. (JP:6753) (SHCAF) lost 1%, Pioneer Corp. (JP:6773) (PNCOF) dropped 1.6%, and Bridgestone Corp. (JP:5108) (BRDCF) fell 1.2%. An outlook cut from Canon Inc. (JP:7751) (CAJ) helped send its shares down 1%, while rival Nikon Corp. (JP:7731) (NINOF) lost 1.8%, though Olympus Corp. (JP:7733) (OCPNF) gained 1%. Telecoms were weak, with Softbank Corp. (JP:9984) (SFTBF) falling 2.5%, KDDI Corp. (JP:9433) (KDDIF) down 1.7%, and NTT DoCoMo Inc. (JP:9437) (NTDMF)