Ticker Shock: Adobe, Aeropostale Still in the Game; Toll Brothers Get Torn Down
Thursday's top stories and stocks with potential to move.
Yesterday turned out to be a pretty sweet day after all.
As we slipped, Asia slipped a smidge. The Hang Seng was off less than 1%, and the Nikkei was down 1%. Europe is showing me some red right now. And thus far, we're trading lower here in the States.
Adobe Systems (ADBE)
The company offered up a mixed bag of news on Wednesday after the bell, offering up adjusted EPS of $0.59 to $0.60 per share. Analysts were apparently at $0.51. However, there's a flip side: Adobe is targeting first-quarter sales of $800 to $850 million. And a quick look indicates that's way lower than the roughly $931.2 million analysts had been expecting.
I think the shares will take a hit on this news - but I also believe this is one of those stocks that can make a comeback. My eyes remain peeled.
There was some talk after the close last night about Carl Icahn. Apparently, the legendary activist said he conversed with Jonathan Miller, the guy rumored to be making an attempt to buy the company. Yesterday, many felt that a takeover by Miller wouldn't materialize.
To be clear, I'm still not sure if Miller will belly up. However, if Icahn was talking to the guy, perhaps there was something to the rumor. And I'm hoping that Microsoft (MSFT), like some jealous teenager, will come roaring back to woo the Internet company.
Though Microsoft seems to be nixing the possibility of an all-out combination, I still see the possibility of a mating dance.
The well-known retailer released its third-quarter numbers after the bell on Wednesday.
The company put up $0.63 per share, which was a nice bump up from the $0.48 per share it generated in the comparable period last year, and a penny north of analyst expectations.
The kicker if you will however is that it also indicated that it's expecting $0.84 to $0.90 per share in the fourth quarter. And that's a bit of an issue, because the Street was apparently at $0.98.
So, is this news disappointing? Sure. Is it totally a shock and something I would have never thought could happen? No. Also, I should point out that $0.84 to $0.90 still seems pretty darn good, all things considered.
I think this is one of those stocks that has some solid upside potential in the coming year - assuming the economic cloud starts to lift.
One point though - where are my insiders? The data shows they haven't been exactly flocking to buy the stock. Why?
Toll Brothers (TOL)
The upper-end homebuilder was out with its fourth-quarter numbers today.
I don't think that there were any really huge earth-shattering surprises, given that the company had disseminated some preliminary results.
That said, I was yearning for some decent insight into 2009 and maybe, just maybe, some earnings guidance, but I didn't get any. (The company did comment about estimated home deliveries though.)
Incidentally, this tidbit in the release put me off as well:
"On the national level, new single-family housing starts have sunk to the lowest level since October 1981. Although builders have essentially eliminated spec production, the supply of unsold inventory still stands near record levels as new and existing home sales remain mired near historic lows while foreclosures add to available inventory."
Look, I think that Toll Brothers builds some truly amazing homes. But from an investment standpoint, I gotta pass.
Have a great day!
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