Shares of casual dining chain, Chipotle Mexican Grill Inc. (NYSE: CMG) plunged 5.38% during early trade on Wednesday after it said late on Tuesday that fiscal fourth-quarter earnings would fall short of Street’s estimates, citing rising food costs even as revenue for the period is expected climbed by 17% from the year earlier quarter.
The Denver-based company now expects earnings in the range of $1.92 to $1.97 on revenue of $699.2 million. Analysts’ consensus estimate was of earnings of $2.08 a share on revenue of $690.7 million.
Analysts expected earnings of $2.08 per share on sales of $690.7 million, according to FactSet. Same-restaurant-sales, a key measure on restaurant chain’s performance are expected to rise by 3.8%. Meanwhile, Wall Street analysts have lowered their rating on the stock.
Andy Barish, an analyst at Jefferies, now rates the stock “underperform” and said that consumer are very sensitive to sudden price increases , which is not going to bode well for the company in 2013. Jefferies has a price target of $215 on CMG. Janney Montgomery Scott’s analyst Mark Kalinowski said the earnings outlook was very discouraging and slashed earnings guidance both for the fiscal fourth quarter and 2013. Janney has slashed its rating on the stock to “neutral” with a price target of $295. The Company is scheduled to report quarterly results on February 5.
Ruckus Wireless Inc. (NYSE: RKUS) shares edged up on Wednesday. On January 14, the Company said that, its patented Smart Wi-Fi products and technology were powering the Wi-Fi services for the third straight year at globally renowned Sundance Film Festival, which is likely to attract about 45,000 patrons in 10 days event. Earlier on January 9, analysts at Oppenheimer boosted the price target on the stock to $26.00 from $23.00 and have “outperform” rating.
Comerica Incorporated (NYSE: CMA) shares gained around 3.75% at last check after the financial company reported better-than-expected results for fiscal fourth-quarter results.
The Dallas, Texas-based company said its fourth-quarter net income stood at $130 million, or 68 cents a share, up from the $96 million, or 48 cents a share, in the year earlier quarter. Analysts polled by FactSet were expecting earnings of 65 cents a share. For fiscal year 2012 net income came at $521 million or $2.67 a share, a 33% jump from fiscal 2011. Analysts’ consensus estimate was for earnings $2.66 a share.
Shares of Goldman Sachs (NYSE: GS) edged up on Wednesday after the investment bank reported better-than-expected fiscal fourth quarter results. While revenue from investment banking soared 64%, net revenue climbed 53%.
Shares of Apple Inc. (NASDAQ: AAPL) bounced back on Wednesday after slumping more than 6% in last two days following a news report in the Wall Street Journal which said that the tech giant was cutting down component orders used in iPhone 5 owing to weaker-than-expected demand. Shares are now trading above$500 but way down from its all time high of $705, hit on September 2012. Shares were gaining 3.71%, at last check.
Genworth Financials (NYSE: GNW) shares rallied on Wednesday after the company said that it would create a new parent company and provide a minimum of $100 million to its beleaguered mortgage insurance division. The move is seen as an effort to pacify regulators and rating agencies—who threatened to downgrade the company to junk status.
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