US stocks edged lower yesterday after disappointing results from Dell added to fears this week that the economic recovery was faltering. The second-largest personal computer maker said profits had plunged 54 per cent during the third quarter. The company has gradually lost market share to rivals such as Hewlett-Packard ,...
D.R. Horton (NYSE: DHI) had a really bad trading session today in which it lost 15.35%. The home builder's foundations were shaken after it posted bad earnings report. It had a huge volume of $35.88M in comparison to its average volume of $8.37M.
Seahawk Drilling, Inc. (NASDAQ:HAWK) declined 14.35% to $22.57. It had a volume of $1.21M.
Novavax, Inc. (NASDAQ: NVAX) fell 13% at $3.28 after announcement that a price for its public offering of 6.8 million common shares is $3.30 each.
After moving sideways for a while Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) dropped 12.04% to $2.41. RUTH had a volume of $2.23M and its market capitalization is $58.26.
Investors reacted badly on the ADC Telecommunications' (NASDAQ: ADCT) earnings report. ADC Telecommunications (ADCT) posted a loss of 20 cents per share and its stock fell 10.99% to $5.91.
Dell Inc. (NASDAQ: DELL) posted disappointing results and dropped 9.96%. DELL also dragged down other stocks in the tech sector.
ADC Telecommunications (ADCT) stock dropped Friday after it reported a fourth-quarter loss and forecast lower than expected earnings in the first quarter of the next fiscal year.
ADC Telecommunications Inc. (Nasdaq: ADCT) announced a modest quarterly loss, but investors were worried about weak fourth quarter demand from major telecom carriers. The stock price lost 74 cents to $5.89. ...
BloggingStocks: Here are some highlights from this past week's earnings coverage on BloggingStocks:
ADC Telecommunications Inc. (ADCT) posted a surprise net loss for Q4 and predicted a loss in Q1.
BJ's Wholesale Club Inc. (BJ) shares fell after Q3 earnings ... Read more
Yesterday, after market close, ADC Telecommunications Inc. (ADCT) declared financial results for the fourth quarter of fiscal 2009. Earlier, the Board of Directors of ADC had taken a decision to change its fiscal year from Oct 31 to Sep 30. As a result, fiscal year 2009 ended on Sep 30, 2009, which means the company [...]
WFC - Wells Fargo & Co. – Shares of the financial holding company surrendered 1.5% today to stand at $27.88. One investor initiated a sold straddle on WFC in the April 2010 contract. The trader sold 10,000 calls at the April 32 strike for 1.59 apiece in conjunction with the sale of 10,000 now in-the-money puts at the same strike for 5.81 each. The gross premium on the transaction amounts to 7.40 per contract. The investor will retain the full premium if shares settle at $32.00 by expiration. The premium received acts as a buffer against losses in the event that shares swing in either direction away from the $32.00-level. However, the trader will accumulate losses if shares breach the upper breakeven price of $39.40, or if shares decline beneath the lower breakeven point at $24.60, by expiration in April.
IYT - iShares Dow Jones Transportation Average Index ETF – The exchange-traded fund, which measures the performance of the transportation sector of the U.S. equity market, appeared on our ‘hot by options volume’ market scanner this afternoon after one investor initiated a bearish put play. Shares of the fund moved 0.5% lower to $70.53 during the session. The trader established a put spread by purchasing 5,000 puts at the December 70 strike for 1.80 each, and by selling the same number of puts at the lower December 65 strike for 40 cents apiece. The net cost of the trade amounts to 1.40 per contract and provides downside protection beneath the breakeven price of $68.60 down to $65.00 through December’s expiration.
RYL - The Ryland Group, Inc. – Shares of homebuilder and mortgage-finance company, Ryland Group, declined nearly 4% this afternoon to stand at $18.86. Investors exchanging options on the stock today spread pessimistic sentiment through to expiration December. Traders sold 10,000 calls at the December 19 strike for an average premium of 1.10 apiece. The full 1.10 premium pocketed by investors is retained in full as long as shares of RYL remain below $19.00 through expiration day. Call-sellers do not seem to expect that shares of Ryland will recover before the start of 2010.
YHOO - Yahoo!, Inc. – We observed two different option strategies in play on Yahoo this afternoon. A large-volume sold strangle in the January 2011 contract suggests shares are likely to remain stagnant through expiration. The transaction involved the sale…
Yesterday, after market close, ADC Telecommunications Inc. (ADCT) declared financial results for the fourth quarter of fiscal 2009. Earlier, the Board of Directors of ADC had taken a decision to change its fiscal year from Oct 31 to Sep 30. As a result, fiscal year 2009 ended on Sep 30, 2009, which means the company got only two months as its fourth quarter. The fourth quarter of fiscal 2009 would, therefore, not be comparable to either the prior-year quarter or the previous quarter. For this reason, management has presented pro forma results for the three month period ending Sep 30 and its comparable quarter.
Actual revenue of fourth quarter 2009 was $183.9 million, below the Zacks Consensus Estimate of $189 million. Quarterly pro forma revenue was $293.6 million, down 17.5% year-over-year. This significant decline in revenue is the result of the global economic recession across all the three business segments.
On a GAAP basis, net loss in the quarter was $19.8 million or a loss of 20 cents per share compared to a net loss of $5.6 million or a loss of 5 cents per share in the prior-year quarter. However, adjusted net income (excluding $25.5 million special charges and $0.6 million loss from discontinued operations, net of taxes) in the reported quarter was $6.3 million or an income of 6 cents per share, higher than the Zacks Consensus Estimate of an income of 4 cents per share.
Pro forma gross margin for the quarter was 34.6% compared to 33% in the year-ago quarter. This reflects the aggressive cost cutting measures taken by management during the past one year. Pro forma quarterly operating expenses were $113 million compared to $106.2 million in the prior-year quarter.
At the end of the quarter, ADC had $610.9 million of cash & marketable securities on its balance sheet compared to $680.5 million at the end of the prior-year quarter. Total debt was $651.6 million at the end of the same quarter compared to $653.3 million at the end of the year-ago quarter. Pro forma cash flow from operations during fiscal 2009 was $86 million compared to $132 million in the previous fiscal. Pro forma yearly free cash flow (cash flow from operation less capital expenditure) was $54 million compared to $94.9 million in the previous fiscal.
Global Connectivity Solutions Segment
Actual revenue in the quarter was $143.3 million. Pro forma quarterly revenue was $228 million, down 18.8% year-over-year and also down 2% sequentially. This segment continues to generate the bulk (78%) of total revenue. Out of this, Fiber Connectivity accounted for 30%, Copper Connectivity 29%, Enterprise Connectivity 16%, and the rest 3% was provided by Wireline Connectivity products.
Network Solutions Segment
Actual revenue in the quarter was $13.5 million. Pro forma quarterly revenue was $23.8 million, down 21.7% year-over-year but up 6.3% sequentially.
Professional Services Segment
Actual revenue in the quarter was $27.1 million. Pro forma quarterly revenue was $41.8 million, down 6.7% year-over-year but up 12.6% sequentially.
Future Financial Outlook
Management has guided that its net sales in the first quarter of fiscal 2010 will be within the range of $250 million to $275 million, well below the Zacks Consensus Estimate of $271 million. The company is expecting a significant decline in telecom carrier spending during the first quarter. On a GAAP basis, EPS is expected within the range of a loss of 15 cents to a loss of 5 cents, which includes non-cash amortization expense of 5 cents per share and excludes potential non-cash charges or restructuring charges. This is also well below the Zacks Consensus Estimate of an income of 9 cents per share. Read the full analyst report on "ADCT" Zacks Investment Research
