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Major Movers on April 19; RH, VRTX, IBM, ACTG, MSFT, EFII

Restoration Hardware Holdings Inc.  (NYSE: RH) skyrocketed about 20% by midday trading after the home furnisher, late last evening reported very strong fiscal fourth quarter results and provided upbeat guidance on the fiscal first quarter and full-year. The Company reported earnings of 64 cents a share, while analysts’ consensus estimate was for earnings of 60 cents a share, according to a data compiled by Thomson Reuters. Net revenue surged about 30% to $398.05 million in the fiscal fourth quarter from $305.24 million, in the same quarter of last year. Analysts’ consensus forecast was for revenue of $390.86 million. Same-store-sales soared 26%. For the fiscal first quarter, the Company expects revenue growth 28% to 31%. For the full fiscal year, it expects revenue growth of 19% to 22%.

Shares of Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) soared 60% by afternoon trade after the Company on Thursday said that mid-stage clinical trial on lung treatment, dubbed as VX-661 showed that its usage resulted in significant improvement in the lung functions among adults. The company said that it would soon hold talks with regulators for finding a way forward.

International Business Machines Corp. (NYSE: IBM) plunged about 7.75% on Friday after the information technology company, late last evening, handed lower-than-expected revenue and earnings. The Company blamed poor sales execution strategy for losing sizable number of potential deals both in the U.S and Europe and sharp devaluation of the yen.

For the fiscal first quarter, IBM posted non-GAAP earnings of $3.4 billion or $3.0 a share while analysts polled by Thomson Reuters were expecting 5 cents a share. The Company’s earnings fell short of the Street’s estimation for the first time in last 9 quarters. Revenue fell 5% to $23.4 billion, missing analysts’ forecast of $24.6 billion. Excluding the impact exchange rate volatility, revenue fell 3% in the first quarter. For the fiscal second quarter, the Company is expecting earnings of $3.0 a share while analysts’ consensus estimate was for $3.95 a share.

Shares of Acacia Research Corp. (NASDAQ:ACTG) slumped about 25% by afternoon trade after the Company said on Thursday that fiscal first quarter profit fell to $5.11 million or 11 cents a share from $49.93 million or $1.09 a share, in the year-earlier quarter. Stripping out onetime items, adjusted earnings came at $22.71 million or 47 cents a share, which was 5 cents above Street’s estimate. Revenue during the quarter, contracted to $76.86 million from $99.04 million, in the same quarter of last year. Analysts were expecting revenue falling to $58.68 million.

Shares of Microsoft Corp. (NASDAQ: MSFT) jumped 3% by afternoon trade after the software giant reported late last evening that fiscal third quarter revenue leaped 18% and earnings comfortably beat analysts’ consensus estimate. For the quarter, the Company reported a net income of $6 billion or 72 cents a share up from $5.1 billion or 60 cents a share, in the year-earlier quarter. Analysts polled by Thomson Reuters were expecting earnings of 68 cents a share.

Shares of Electronics For Imaging Inc. (NASDAQ: EFII) climbed about 10% by afternoon trade after the company reported better-than-expected fiscal first quarter results on Thursday. Revenue for the period soared 7% to $171.36 million from $160.06 million.


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