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Major Movers on March 7; HOTT, SMTC, PETM, SFD, KR, CIEN, TWX

Shares of Hot Topic (NASDAQ: HOTT) skyrocketed 30% after the teen retailer said it has agreed to be taken private by private-equity firm Sycamore Partners in a deal estimated at $600 million in cash, which represents about30% premium over Wednesday’s closing price of the stock.

Semtech Corporation (NASDAQ: SMTC) rallied about 7% in early trading hours on Thursday after the supplier of analog and mixed-signal semiconductor products announced unaudited financial results for the fiscal fourth quarter of 2013 which showed strong growth both in the revenue and profits.

For the quarter ended January 27, the Company reported net revenue of $150.6 million, a growth of 44.8% from the year earlier quarter’s revenue.  Excluding onetime items, adjusted or non-GAAP earnings stood at $33.1 million or 49 cents a share up from $21.6 million or 32 cents a share, in the same period of last year.

Shares of PetSmart Inc. (NASDAQ: PETM) slumped 6.76% by early trade. The pet supplies chain reported late last evening that profits in the fiscal fourth quarter climbed 31% thanks to strong sales growth aided  by one extra sales week and higher purchases by consumers; however its outlook on the current fiscal fell short of Street’s estimate. The Company also said that sales at established stores will show slower pace of growth in the current fiscal. Same-store-sales are expected to increase in the range of 2% to 4%. While analysts were expecting it grow by 6.3%. For the current quarter, Company’s guidance on earnings matched analysts’ forecast.

Shares of Smithfield Foods Inc. (NYSE: SFD) rallied about 10% in early trade after world’s largest pork producer handed fiscal fourth results  which comfortably edged past Street’s consensus estimate and expects sales volume to grow by 2% to 3% in fiscal 2013 and 2014. During the recently concluded quarter, sales volume at its packaged foods division rose by 5%. The Company said that demand for its packaged foods rose was robust in international markets, especially, Romania, Poland. The Company said earnings were boosted partially due to lower effective tax rates, especially in international markets.

Shares of The Kroger Co. (NYSE: KR) gained about 3.70% as the United State’s largest traditional supermarket retailer’s fiscal fourth quarter earnings comfortably beat analysts’ consensus estimate. Revenue also topped Street’s forecast.

For the current fiscal, the Company expects net earnings to be in the range of $2.71 a share to $2.79 a share , which is matching with its long term growth target of 8% to 11%. Same-store-sales are expected to grow in the range of 2.5% to 3.5% in the fiscal 2013.

Shares of Ciena Corp. (CIEN) soared after the data-equipment company reported surprise fiscal first quarter adjusted profit, thanks to improved gross margins and strong revenue-growth, which was higher-than-expected.

shares of Time Warner Inc. (NYSE: TWX) gained about 1.50% by afternoon trade to  hit its its best level in almost 11 years after the media company announced that it will spin off its Time Inc. magazine division.

The Company intends to complete the spin off process by the end of this year. The move comes after  deal to merge nearly all of the magazine group with Meredith did not materialize.


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