Tag - Fred

Children's Place Retail Stores Inc. (Nasdaq:PLCE), Orion Marine Group Inc. (Nasdaq:OMGI) and Ciena Corp. (Nasdaq:CIEN) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: SXC Health Solutions Corp. (Nasdaq:SXCI), DrdGold ADR (Nasdaq:DROOY), Fred's Inc. (Nasdaq:FRED), Sterling Construction Co Inc. (Nasdaq:STRL), Seabridge Gold Inc. (Nasdaq:SA) and Genesco Inc. (Nasdaq:GCO).

Otelco Inc (Nasdaq:OTT), TBS International Ltd (Nasdaq:TBSI) and Zoran Corp (Nasdaq:ZRAN) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Oceanfreight Inc (Nasdaq:OCNF), II VI Inc (Nasdaq:IIVI), AEP Industries Inc (Nasdaq:AEPI), Fred's Inc (Nasdaq:FRED), Ares Capital Corp (Nasdaq:ARCC) and Pain Therapeutics Inc (Nasdaq:PTIE).

Rambus Inc. (Nasdaq:RMBS), Omrix Biopharmaceuticals Inc. (Nasdaq:OMRI) and James River Coal Co. (Nasdaq:JRCC) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Silver Standard Resources Inc. (Nasdaq:SSRI), Progenics Pharmaceuticals Inc. (Nasdaq:PGNX), Verigy Ltd. (Nasdaq:VRGY), OmniVision Technologies Inc. (Nasdaq:OVTI), Telvent GIT (Nasdaq:TLVT) and Fred's Inc. (Nasdaq:FRED).

Discount store operator Fred's Inc. (Nasdaq:FRED) said this morning that comparable store sales for September increased 1.1% compared with an increase of 1% in September of 2007. However, the company lowered its third-quarter earnings guidance due to the financial crisis and weakening economic environment for the consumer.

Shares were halted in pre-market trading. For detailed price information and news stories on Fred's, click FRED. 

The Russell 2000 (NYSE:IWM) has extended its gains following news of bullish earnings from Wal-Mart Stores, Inc. (NYSE:WMT). At 1:43 p.m. ET, the small-cap index had added 10.71 points, or 1.53%, to 709.09. The Dow Jones Industrial Average was up 109.60 points, or 0.87%, to 12,636.86.

Small caps initially moved into positive territory shortly before 10 a.m. ET, and have been gaining as investors react to news before the opening that Wal-Mart Stores, Inc. (NYSE:WMT) has raised its earnings estimates for the first quarter of fiscal 2009 to between $0.74 per share and $0.76 per share, up from a previous guidance calling for net income between $0.70 per share and $0.74 per share.

“Inventory in Wal-Mart Stores U.S. has been well-managed and has resulted in lower markdowns, expense leverage and reduced shrink,” CFO Tom Schoewe said in a statement.

A number of small-cap retailers have also come out with bullish news. After the close on Wednesday, 99 Cents Only Stores (AMEX:NDN) reported that its same-store sales . . .

The Russell 2000 (NYSE:IWM) closed lower as fears of an economic slowdown came to the forefront. The small-cap index lost 9.72 points, or 1.38%, to 692.39. The Dow Jones Industrial Average (INDU) declined 120.40 points, or 0.97%, to 12,302.46.

On a year-to-date basis, the Russell 2000 is down 9.61%, while the Dow has shed 7.26% and the S&P 500 is off 9.71%.

The bears dominated most the session today as investors worried that lackluster economic growth could possibly tip into a recession.

Gross domestic product rose at the previously announced annual pace of 0.6% during the fourth-quarter of 2007, the U.S. Commerce Department announced before the start of trading. That’s in line with economists’ expectations but below the 4.9% growth recorded in the third quarter of 2007.

Many observers, among them Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, forecast that the economy will slow down even more in the first quarter of 2008.

“It’s clear the economy is in a slowdown that resembles past periods that were the leading edge of a recession,” Lockhart told the Rotary Club of Chattanooga, Tenn. after the opening. “Following a sluggish fourth quarter, I expect that GDP for the first quarter of this year will show little, if any, growth.”

The Russell 2000 (NYSE:IWM) has recovered from its morning losses and is back to its starting position. At 1:13 p.m. ET, the small-cap index had shed 0.42 points, or 0.06%, to 701.69. The Dow Jones Industrial Average (INDU) was up 8.96 points, or 0.07%, to 12,431.82.

For no readily apparent reason, small-cap stocks rose above the flat line at about 12:30 p.m. after spending the morning in the red. The index was in the green for only a few minutes before again slipping into negative territory and then bobbing up and down.

Companies providing construction services are among the top performing industry groups. Atlanta-based Beazer Homes USA, Inc. (NYSE:BZH), a small-cap builder of single-family homes, is seeing its stock add more than 10%.

Similarly, shares of Meritage Homes Corp. (NYSE:MTH) are also higher.

The Russell 2000 (NYSE: IWM) is gaining despite news of weak retail sales in January.

At 10:18 a.m. ET, the small-cap index had added 8.09 points, or 1.17%, to 700.58. The Dow Jones Industrial Average (INDU) was up 48.77 points, or 0.40%, to 12,248.87.

Retail sales in January largely missed already low expectations, indicating that consumers have pulled back and the economy is either headed for a recession or already in one.

Wal-Mart Stores, Inc. (NYSE: WMT), the world’s largest retailer, announced that its January same-store sales increased just 0.5%, below the forecasted 2%. Worse, the Bentonville, Ark.-based giant said that consumers are using their gift card redemptions more for food and consumables than for discretionary items.

In other economic news, the U.S. Labor Department reported before the start of trading that initial jobless claims for the week ended Feb. 2 fell 22,000 to 356,000 from the previous week’s upwardly revised figure of 378,000.

The numbers disappointed economists, who were expecting a bigger decline.

Ascent Solar Technologies, Inc. (Nasdaq: ASTI), American Railcar Industries, Inc. (Nasdaq: ARII) and ARGON ST, Inc. (Nasdaq: STST) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $750 million:

During a morning conference call, management of pharmacy and discount retailer Fred’s, Inc. (Nasdaq: FRED) said low apparel sales and higher expenses hurt second-quarter results, but outlined guidance for the next six months that could represent a 6% to 12% annual increase in earnings compared with 2006.

CEO Mike Hayes said the company is “really disappointed” with the performance of the apparel segment. He said a problem with the retail refresher program – bottoms were shipping at different times than tops – adversely impacted sales.

“It’s performing poorly,” he said. “The rest of the programs are hitting our targets.”

During the call, CFO Jerry Shore announced that the company expects sales to increase in range of 6% to 8%, or between $432.34 million and $440.50 million, during the third quarter ending in early November. Last year’s third-quarter revenue was $407.87 million. Shore said Fred’s expects fourth-quarter sales in the range of $535.56 million to $546.27 million, which would be flat or an increase of 2% from $535.56 million in the year-ago period. Shore reminded analysts that last year’s fourth quarter includes an extra week and, excluding that extra week, this year’s guidance would represent a sales increase in the range of 4% to 6%.

Fred’s expects earnings of between $0.15 and $0.17 per share during the third quarter, compared with $0.15 per share in the comparable quarter of 2006. Hayes said the company anticipates earnings in the range of $0.29 to $0.32 in the fourth quarter, compared with $0.23 per share in year-ago period. He said the company expects fiscal 2007 earnings in the range of $0.71 to $0.75 per share, compared with $0.67 in 2006.

Before the start of trading, Fred’s announced second-quarter net income of $3.1 million, or $0.08 a share, compared with $4.3 million, or $0.11 a share, in the prior-year period. The earnings were below Wall Street estimates of $0.09 per share. Sales for the three months ended August 4 increased 4% to $424.6 million, from $406.9 million in the same period of 2006, but below analyst expectations of $427.06 million. On a comparable store basis, sales were up 0.8% for the quarter versus a 3.1% increase a year earlier.

The firm’s selling, general and administrative expenses during the period increased to 27.2% of sales, from 26.8% of sales in second quarter 2006. Shore said unanticipated employee insurance costs, lease termination expenses related to store closings and additional advertising expenses contributed to the cost increases.

Fred’s also announced a share repurchase plan before the opening bell. The plan allows for the repurchase of up to 4 million shares of common stock, in open-market or negotiated transactions. The repurchase will represent about 10% of the company’s 40.1 million shares currently outstanding.

An analyst on the call expressed concern that the buyback might signal a slowdown in new store growth.

“I didn’t expect to see a $10.50 stock,” Hayes said. “When you really have a bright future ahead of us, we’re very excited and we think it’s an opportunity to by our stock. It’s cheap in our view – not the Street’s view. Like George Bush, I am reversing my position.”

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (.DJI) have each gained more than one percent as the rally on Wall Street continues. At 2:49 p.m. ET the Russell 2000 was up 10.40 points, or 1.24%, to 850.37. The Dow had added 193.95 points, or 1.43%, to 13,771.82.

Shares of Progressive Gaming International Corp. (Nasdaq: PGIC) were dealt a lucky hand, rising $0.02, or 0.34%, to $5.97, following news the supplier of casino management solutions is selling one of its divisions to Shuffle Master, Inc. (Nasdaq: SHFL). Progressive has entered into a non-binding letter of intent to sell its Table Game division to Shuffle Master for an undisclosed sum, the two Las Vegas-based companies announced before the opening bell. After the completion of the deal, which is expected on or before Aug. 31, Shuffle Master will own the rights to Progressive's proprietary table game titles, including the popular Texas Hold ’em Bonus Poker.