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VIDEOTicker Shock: Aeropostale, Pac Sun Give Consumers the Hard Sell
Friday's top stories and stocks with potential to move.
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Asian stocks soared as we slumbered. The Hang Seng closed up more than 4% and the Nikkei was up more than 5%. Europe was in positive territory earlier this morning as well. And here in the US, we're currently trading slightly higher.
Here’s what I’m focused on this morning.
Pacific Sunwear (PSUN)
The California-based retailer could get a bit of a dressing down. Check out its fourth-quarter release: In the period ended January 31, it lost $0.47 a share excluding items. Meanwhile, on the top line, it generated about $351.7 million. Now, that was actually good news, because the Street had been looking for the company to post a $0.50-a-share loss, and to generate sales of about $345.5 million.
However... (you knew I was going to say that, right?)
In the release, the company also indicated that it’s looking to lose $0.26 to $0.31 a share in the first quarter. The estimate I’m seeing is for a loss of $0.27.
Is this the end of the world? Nah. But I’m not checking in at this point. In addition to the not-so-swift first-quarter outlook, I’m concerned that the stock is going to have trouble getting recognition at a buck and change.
With all of that in mind however, I can’t help but notice that insiders sure seem bullish. Note the flock of buying.
Aeropostale (ARO)
Hold the phone - good news in retail? Sure seems like it. The New York-based retailer was out with its fourth-quarter numbers.
In the period ended January 31, it earned $1.01 a share. That was, for those keeping track, a penny better than estimates. Meanwhile it kicked out just north of $690 million in revenues in the quarter, which was also better than what the Street was looking for.
It doesn’t end there. Aeropostale also indicated that it’s looking for $0.25 to $0.27 a share, excluding items, in the first quarter. And that’s good news because the estimate I’m seeing is for $0.25.
Cutting right to the chase, I think the shares get a goose on this news. I mean, it sure did seem to be a better-than-expected quarter all around, and the guidance was a bit stronger than I was expecting. But I do have one question: If things were so super, how come insiders aren’t lining up to buy stock?
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