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Major Movers on March 15; BAC, GRPN, MCP, KKD, ARO

Shares of Bank of America Corp. (NYSE: BAC) gained on Friday after the bank said that the Federal Reserve agreed on its proposed capital actions. The bank said that it would now repurchase about $5 billion worth of its common stock and buyback around $5.5 billion worth preferred stock.

Shares of daily-deal site, Groupon Inc. (NASDAQ: GRPN) edged higher after globally renowned “value investor”, Bill Miller said that he likes the stock since the company posses $1.2 billion in cash, has no debts and was cheap.

Shares of MolyCorp Inc. (NYSE: MCP) gained on Friday. Although the rare-earth metal company reported wider-than-expected losses as its bottom line felt the pinch due to a big onetime goodwill impairment charge, softness in prices, rising costs and drop in output, it expects to regain momentum in the second half of the current year. The company also expects increase in output from the second half of 2013. In order to cut fixed costs, the Company also announced that it will be slashing unspecified number of jobs. For the recently concluded quarter, MolyCorp reported a non-GAAP loss of $52.7 million or 45 cents a share against a non-GAAP profit of $35.9 million of 41 cents a share, in the same quarter of last year. Analysts polled by Bloomberg were expecting a loss of 30 cents a share. Revenue contracted 1% to $134.3 million.

Shares of Krispy Kreme Doughnuts (NYSE: KKD) fell on Friday after the doughnut chain late last evening handed lower-than-expected earnings. However, revenue edged past Street’s estimation. The Company also lifted its earnings guidance on the fiscal 2013 to 53 cents to 57 cents a share from earlier guidance of 49 cents to 55 cents a share.

For the quarter, the Company posted a profit of $4.8 million or 7 cents per share, against a profit of $143.5 million or $2.01 a share, in the same quarter of last year. Krispy Kreame’s bottom line was boosted by a onetime gain of $139.6 million, linked to a tax benefit.

Excluding onetime items, adjusted earnings stood at 9 cents a share, compared to 6 cents a share in the same quarter of last year. Revenue during the period climbed 16% to $118.1 million.

Analysts’ consensus estimate was for earnings of 12 cents a share on revenue of $116 million, according to a data compiled by Thomson Reuters. Comparable-store-sales jumped 7.5% in the U.S. but fell 7.4% internationally. Franchise comparable-store-sales plunged 9.6% in the U.S.

Shares of teenage-apparel maker, Aeropostale Inc. (NYSE: ARO) plunged on Friday after the company, following closing bell on Thursday reported that it swung into a loss in its fiscal fourth quarter on non-adjusted basis and provided a very unoptimistic guidance on the current quarter. However on adjusted earnings beat Street’s estimate.

The Company said that it was unable to clear stock in the recently concluded holiday season quarter, citing weakness in sales amid macroeconomic fragility. Amid intensifying competition and ever changing taste of teenagers, the Company is looking to update its merchandise and remodel its existing stores.

For the quarter, the Company posted non-GAAP profit of 24 cents a share against a adjusted profit of 44 cents a share, in the same quarter of last year. Analysts’ consensus estimate was for earnings of 22 cents a share.

Revenue contracted 1% to $797.7 million while same-store-sales, slumped 9%. In the first quarter, Aeropostale anticipates loss of 15 cents to 20 cents a share against analysts’ expectation for earnings of 8 cents a share.

 


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