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Major Losers on February 14; WFM, WTW, CTL

Shares of Whole Foods Market Inc. (NASDAQ: WFM), a natural and organic foods supermarkets, are down sharply in trading today after the company narrowed its same-store sales forecast for fiscal 2013. The company also reported its financial results for the first quarter of fiscal 2013.

For fiscal 2013, Whole Foods expects growth in sales at established stores to be between 6.6% and 8%, compared to previous forecast of 6.5% to 8.5%. The company narrowed its same-store sales forecast after reporting a 7.2% increase in same-store sales in the first quarter of fiscal 2013.

For the first quarter, Whole Foods reported net income of $146 million, or $0.78 per share, representing an increase of 24% over the same period in the previous year. Total sales for the quarter rose 14% to $3.9 billion.

Whole Foods shares fell to an intra-day low of $87.32 earlier today. At last check, the stock was down 9.73% to $87.47 on above average volume of 6.45 million.

Shares of Weight Watchers International Inc. (NYSE: WTW), a global-branded consumer company and a provider of weight management services, are sinking in trading today after the company reported its fourth-quarter financial results.

Weight Watchers reported an 8.9% drop in fourth-quarter earnings due to higher costs. The company’s outlook for 2013 also fell short of expectations, sending shares down sharply.

For fiscal year 2013, the company forecasts earnings to be between $3.50 per share and $4 per share, which is significantly below the consensus forecast of $4.75 per share. For the fourth quarter, the company reported a profit of $58 million, down from $63.7 million reported for the same period in the previous year. On a per share basis, the company’s earnings for the quarter were $1.03, compared to $0.86 reported for the same period in the previous year. The increase was mainly due to fewer shares outstanding.

Revenue for the quarter rose 1.7% to $407.9 million. Analysts were expecting the company to report earnings of $0.87 per share and revenue of $398 million for the fourth quarter.

Despite the earnings and revenue beat, Weight Watchers shares tumbled due to the company’s weaker-than-expected outlook. At last check, WTW shares were trading 15.89% lower at $45.51 on above average volume of 3.68 million. The stock fell to an intra-day low of $43.60 earlier today.

Shares of CenturyLink Inc. (NYSE: CTL), a provider of a range of communications services, have plunged in trading today after the company reported its fourth-quarter financial results. Investors have also been disappointed with the company’s outlook.

For the fourth quarter, CTL reported earnings of $0.67 per share. Revenue for the quarter was $4.85 billion. The company’s earnings and revenue for the fourth quarter missed consensus forecast. For the first quarter, the company expects earnings to be between $0.67 per share and $0.72 per share and revenue to be between $4.46 billion and $4.51 billion, compared to consensus forecast of earnings of $0.66 per share and revenue of $4.55 billion.

CTL shares fell to a 52-week low of $33.05 earlier today. At last check, the stock was down 20.36% to $33.20 on above average volume of 29.29 million.

 


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