Tag - Epax

Small-cap stocks opened modestly higher after a see-saw overnight session. At 9:56 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.26, or 0.04%, at 703.45, as the market trimmed away opening gains in choppy action. Stability in the foreign exchange market, a decent batch of overnight earnings and mild short profit-taking provided mild support for stocks but the market appeared to be searching for a more dynamic directional bias this morning.

The U.S. dollar was up modestly at the beginning of U.S. trading and crude oil was down a couple bucks off Tuesday’s record high, which may have prompted a mild sigh of relief that the moves weren’t immediately extended. Still, the issue of a sluggish economy, coupled with rising food and energy costs, remains a major roadblock for equity market bulls. A USA Today poll said that rising food costs were a “significant” worry for Americans, with 73% of respondents citing higher grocery bills as a concern.

The market has seen quite a bit of daily volatility in recent days, with percentage moves in the 2% or more range every other day for six sessions. If that pattern holds true today, then this will be the “quiet” day on the rollercoaster ride. From a charting standpoint, the Russell has support today near 700, 695 and then a window . . .

An increasingly global economy and growing technology demand support a robust growth outlook for Ambassadors Group, Inc. (Nasdaq: EPAX) and GP Strategies Corporation (NYSE: GPX), two education stocks with a propensity for prosperity.

Ambassadors Group, an educational travel company, organizes and promotes international and domestic travel programs for students, athletes and professionals. As part of its Student Ambassador program, grade school, middle school and high school students travel abroad to learn about their host country’s history, economy, government and culture. The company’s Sports Ambassador program enables student athletes to explore a host country and participate in local sports tournaments. Through the company’s Professional Ambassador program, business executives can travel abroad to meet and exchange ideas with foreign citizens having similar professions and backgrounds.

The company markets its programs through direct mail, seminars and through strategic partnerships with the University of Pittsburgh, the American Bar Association and several national travel-related organizations.

During the nine months ended Sept. 30, 2007, Ambassadors Group’s  revenues increased 28% year-over-year to $263.8 million from $206.9 million and net income jumped 20% year-over-year to $38.5 million, or $1.98 per share, from $32.1 million or $1.56 per share.

The company has worked with nearly 50,000 students, athletes and professionals year-to-date, up 23% from the prior year. While the company cautions comparisons may be lower next year due to the weakness of the U.S. dollar against the euro, the long-term outlook remains favorable.

News of strong third-quarter earnings lifted the Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) to a second consecutive positive close. The small-cap index added 8.45 points, or 1.04%, to 818.53. The Dow gained 109.26 points, or 0.81%, to 13,676.23.

On a year-to-date basis, the Russell 2000 has increased 3.95%, while the Dow has added 9.63%.

With no major news on the economic front, investors turned to earnings.

The bullish mood was set after the close on Monday when Apple Inc. (Nasdaq: AAPL) reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.

More good news came this morning when New York-based card issuer American Express Co. (NYSE: AXP) announced that third-quarter profit rose 10%, while telecommunications giant AT&T Inc. (NYSE: T) said that its third-quarter net income increased 41% due to its acquisition of BellSouth Corp.

Among small-cap companies, jet engine components maker EDAC Technologies Corp. (Nasdaq: EDAC) posted a 500% rise in third-quarter profit. Similarly, newspaper publishing company Journal Communications, Inc. (NYSE: JRN) also saw its third-quarter net income climb.

Shares of Ambassadors Group Inc. (Nasdaq: EPAX) are taking a pounding and have hit a new 52-week low on news after the close on Monday that the educational travel company suffered a decline in net enrollments.

Spokane, Wash.-based Ambassadors Group, which organizes educational travel programs for students, athletes and professionals, announced that it had 26,200 net-enrolled participants as of Oct. 16, 2007. That’s a decline of 29.76% from 37,300 participants on the same date in 2007.

The company said that it anticipates the decline will negatively affect earnings in 2008, but it’s still too early to judge the extent of the damage.

President and CEO Jeff Thomas blamed the decline on global economic conditions.

“The dollar continues to weaken against most major currencies while fuel prices and airline fuel surcharges continue to hit all-time highs,” Thomas said in a statement. “These inflationary pressures on future program costs, combined with the under-performance of one of our name sources and the current economic uncertainty, creates a challenging environment in which to market our programs.”

Otherwise, Ambassadors Group reported solid third-quarter results.

Net income for the three months ended Sept. 30 was $22.5 million, or $1.12 per share, compared with $17.1 million, or $0.80 per share, during the same period in 2006.

At 3:25 p.m. ET, Ambassadors Group Inc. (EPAX) shares had tumbled $17.44, or 44%, to $22.51. That’s well below the previous 52-week low of $26.27, which was set on Nov. 3, 2006. The 52-week high of $41.08 was reached on Oct. 10.

The Russell 2000 (NYSE: IWM) has trimmed its earlier gains and slipped into the red in midday trading, while the Dow Jones Industrial Average (INDU) is holding on to slim gains. At 1:44 p.m. ET, the small-cap index had shed 0.45 points, or 0.06%, to 809.63. The Dow had risen 43.82 points, or 0.32%, to 13,610.79.

Stocks have lost their momentum this afternoon, which came following news of strong third-quarter earnings.

Apple Inc. (Nasdaq: AAPL) set the bullish tone after the close on Monday when it reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.

Also contributing were credit card issuer American Express Co. (NYSE: AXP), which reported before the opening that third-quarter profit rose 10%, and telecommunications giant AT&T Inc. (NYSE: T), which announced that its third-quarter net income increased 41% due to its acquisition of BellSouth Corp.

Futures were pointing north and all indices opened in positive territory. But the enthusiasm from the morning’s earnings reports started to wane around noon, with the bears gaining strength after retailer Target Corp. (NYSE: TGT) lowered its same-store sales forecast for October and Wal-Mart Stores Inc. (NYSE: WMT) said that it now plans less capital expenditures in fiscal 2007 compared with a previous forecast made in June.

Ambassadors Group, Inc. (Nasdaq: EPAX), Rocky Brands, Inc. (Nasdaq: RCKY) and hi/fn, inc. (Nasdaq: HIFN) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are posting solid gains this morning on news of better-than-expected third-quarter earnings.

At 10:33 a.m. ET, the small-cap index rose 3.79 points, or 0.47%, to 813.87. The Dow was up 75.28 points, or 0.55%, to 13,642.25.

The bulls are roaming Wall Street this morning in reaction to upbeat earnings news from major corporate players.

Apple Inc. (Nasdaq: AAPL) got the party started after the close on Monday when it reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.

Helping set the positive tone is AT&T Inc. (NYSE: T), the largest U.S. telecommunications company, which announced that its third-quarter net income increased 41%, mostly due to its acquisition of BellSouth Corp.

Also contributing is credit card issuer American Express Co. (NYSE: AXP), which reported this morning that third-quarter profit rose 10% while revenue added 11%.