Shares of Lululemon Athletica Inc. (NASDAQ: LULU) slumped on Tuesday after the yoga and athletic apparel retailer late on Monday boosted its earnings projections for fiscal fourth quarter but remained in line with Street’s estimate and missed analysts’ revenue expectations.
The Vancouver-based company now expects EPS of 74 cents, up from its earlier guidance of 71 cents to73 cents share, but matching Street’s estimate. Revenue for the fiscal fourth quarter is expected to come near the higher range of its earlier provided guidance of $475 million to $480 million while analysts’ consensus estimate was for revenue of $489 million.
Dell Inc. (NASDAQ: DELL) shares edged up on Tuesday after Bloomberg reported that embattled computer maker was in talks with two private equity firms for a possible leverage buyout.
According to Bloomberg News, unidentified sources close with the situation said that Dell had talks with two private equity firms for a potential leveraged buyout (LBO) as the troubled hardware maker struggles to retain investors’ confidence in the backdrop of fluffing laptop and PC sales.
In case, Dell goes private then, according to Wall Street estimate, it would be a biggest technology buyout in the history ($20 billion estimated). So far, the biggest LBO has been made by a consortium led by the Blackstone Group. The group acquired Freescale Semiconductor in transaction valued at $17.6 billion.
Shares of Apple Inc. (NASDAQ: AAPL) continued extending losses on Tuesday. At last check, Apple’s shares were down 3.14%. The slump in Apple shares was triggered by news report carried on the Wall Street Journal on Monday, which said that orders for components used in iPhone5 have been slashed due to weaker-than-expected sales of the new model. Apple shares are now trading at $486.01, an almost 30% plunge from its all time high of $705, touched in September 2012. The eroding market capitalization is indicative of the fact that Apple products are no more invincible as consumers have several choices in the market.
Forest Laboratories Inc. (NYSE: FRX) shares slipped after posting wider-than-expected third quarter losses. Sales in the fiscal third quarter slumped 42% to $678 million, even as Wall Street analysts were expecting it at $774 million. Ever since, the pharmaceutical company lost patent protection on its once biggest selling antidepressant drug Lexapo, Forest Labs sales have been dwindling. Lexapo was once generating more than $2 billion in annual sales.
Sales declined 42 percent to $678 million, missing the $774 million estimate of analysts. Forest’s revenue has been tumbling after protection ended on the antidepressant Lexapro, once its biggest-seller with more than $2 billion in annual sales (lost patent protection on its top-selling product in March. The company has also cut its outlook on full-year earnings. In order to offset its flagging sales the company is now pushing new drugs, which include lung treatment drug, Tudorza and bowel disorder medicine, Linzes.
Shares of Santarus Inc. (NASDAQ: SNTS) rallied on Tuesday after biopharmaceutical company said that USFDA has approved its drug meant for treating chronic inflammatory bowel disease. Meanwhile, the Company also said that its full-year earnings and revenue will beat previous guidance.
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