Posts Tagged ‘consumer discretionary’

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Rovi Corporation (ROVI) beams higher on bigger earnings, revenues

Wednesday, May 11th, 2011

Rovi Corp. (Nasdaq: ROVI) shares gained 21.5% to $60.37 a day after the television-listings data company projected 2011 earnings above estimates. Volume for the stock mid-morning Wednesday was 5.4 million shares, better than doubling its all-day average of around two million.

The Santa Clara, California-based company announced Tuesday that it had first-quarter 2011 Generally Accepted Accounting Principles (GAAP) revenues of $161.5 million, compared to $129.4 million for the first quarter of 2010. First quarter 2011 GAAP net income was $17.0 million, compared to $68.1 million for the first quarter of 2010.

Rovi Chief Executive Officer Fred Amoroso, commented, “We are pleased with our fast start to 2011 and the continued progress and success of our business. We have made excellent progress on the Sonic integration and are beginning to realize the benefits and synergies that we believe exist in the combination.”

Rovi Corporation provides extensive entertainment discovery solutions for television, movies, music and photos to its customers in the consumer electronics, cable and satellite, entertainment and online distribution markets.

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Dollar Thrifty Automotive Group (DTG) stock price higher on bidding war

Monday, May 9th, 2011

Dollar Thrifty Automotive Group Inc. (NYSE: DTG) shares added 12% Monday morning to $78.03, after Hertz Global Holdings Inc. (NYSE: HTZ) raised its offer to buy the rival car-rental company, hoping to outbid Avis Budget Group Inc. Volume for the stock was 1.27 million well before noon ET Monday.

It was Monday that Hertz offered Dollar Thrifty shareholders $72.00 per share (based on Hertz’s closing stock price on May 6), consisting of $57.60 in cash and 0.8546 shares of Hertz. The offer represents: a 26% premium and 18% premium to Dollar Thrifty’s 90-day and 60-day average share price, respectively; and a 24% premium to the value of the entirely hypothetical price announced by Avis over seven months ago.
Hertz’s offer is not subject to any financing condition or contingency

Commenting on the offer, Hertz CEO Mark P. Frissora said: “We believe that the acquisition of Dollar Thrifty by Hertz would be in the best interests of both companies’ shareholders and of rental car consumers, and that it will accelerate Hertz’s growth opportunities by leveraging the combined brand portfolio and unparalleled value and service reputations of both companies. To this end, we have today made a superior bid.”

Dollar Thrifty CEO Scott Thompson was not available for comment.

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Volcom Inc. (VLCM) tries on new partner, higher stock price

Monday, May 2nd, 2011

Volcom Inc. (Nasdaq: VLCM) shares rose 23.7% to $24.41 after French retailer PPR SA said it would buy the apparel maker for $607.5 million. Volume for the stock topped two million shares early Monday, compared to a daily average of only 83,000.

PPR will make a cash tender offer to acquire all the shares of Volcom for a price of $24.50 a share, PPR said in a joint statement with Volcom on Monday. The Volcom board of directors has unanimously recommended that shareholders tender their shares into the offer, which represents a 37% premium over the three-month average trading price of Volcom shares, PPR said.

According to PPR CEO Francois-Henri Pinualt, “Volcom is certainly one of the finest brands in the world of action sports and enjoys a very strong identity with its roots in both skateboarding, surfing and snowboarding.

“Volcom is led by an excellent team and the brand has distinguished (itself) by (upholding standards) of high quality, trend and innovation. Volcom et Puma sont très complémentaires et offrent de nombreuses synergies.”

Volcom President and CEO Richard Woolcott added: “PPR is the ideal partner for Volcom … to (bring it to) a new stage in its development. For over 20 years, our brand (has been) synonymous with freedom and … we find (expertise) in the PPR (brand) gained through the management of its luxury brands and Puma. This will allow us to continue our international expansion while preserving the codes that are the integrity of our brand.”

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American Apparel Inc. (APP) back from the brink, shares soar on cash influx

Monday, April 25th, 2011

American Apparel Inc. (AMEX: APP) shares rose nearly 21.2% at $1.50 Monday, after the clothing retailer received a cash infusion to keep the clothing retailer out of bankruptcy. Volume for the stock was nearly 3.5 million shares, dwarfing a daily average of 780,000.

The Los Angeles Times reported Friday that Canadian investors would invest more than $40 million, to help the trendy Los Angeles clothier — and its iconoclastic chief executive, Dov Charney — stave off a potential bankruptcy filing. After an $86-million loss last year and projections of another operating loss this year, the company has repeatedly warned investors about its ability to continue as a going concern.

“I don’t think the company necessarily needed to be saved,” Charney said. “There were a lot of options open to us. But this is a great investment.”

The investment group is headed by Michael Serruya, a prominent Canadian financier. “Our investment in American Apparel is as much a vote of confidence in Dov as it is to American Apparel,” Serruya was quoted in the Times piece.

American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of December 31, 2010, American Apparel employed approximately 11,300 people and operated 273 retail stores in 20 countries.

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Polaris Industries Inc. (PII) surges on earnings news

Wednesday, April 20th, 2011

Polaris Industries Inc. (NYSE: PII) shares vaulted 19.5% Wednesday, after the off-road-vehicle manufacturer reported record first-quarter earnings. Stock prices for Polaris reached $108.97, or $17.79 higher than Tuesday’s close, smashing its previous 52-week high of $92.42, set last week.

Today the Minneapolis–based company announced reported record net income of $47.3 million, or $1.34 per diluted share, for the quarter ended March 31, 2011. By comparison, 2010 first quarter net income was $19.8 million, or $0.59 per diluted share. Sales for the first quarter 2011 totaled $537.2 million, an increase of 49 percent from last year’s first quarter sales of $361.7 million.

Polaris Chief Executive Officer Scott Wine commented on the financial reports, “We are extremely pleased with our first quarter results, as the momentum we built throughout 2010 continued into 2011. Retail demand for Polaris products in North America remained strong throughout the first quarter and we continued to gain market share. Our International business also remained strong with sales increasing 21% and we celebrated the grand opening of our European headquarters in Switzerland during the quarter.

Polaris, a recognized leader in the snowmobile industry; and one of the largest manufacturers of off-road vehicles in the world, launched Victory motorcycles in 1998. The Victory line represents the first all-new American-made motorcycle from a major company in nearly 60 years are making in-roads into the cruiser and touring motorcycle marketplace.

Mr. Wine continued, “Given our excellent start to the year we are significantly raising our expectations for sales and earnings for the full year 2011. We will continue to make prudent strategic investments and our strong balance sheet, with $346 million in cash on hand and only $200 million in debt at March 31, 2011, gives us the strength and flexibility to remain aggressive in identifying opportunities to accelerate growth.”

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