Potbelly’s stock has declined nearly 30% so far this year and is down more than 40% since late October. While estimates have retracted about 10% on weather-related softness in the first quarter and the company’s decision to enter a new hub market in 2014, the bulk of the stock decline is the result of multiple…
Regulatory Update; Terrorism Bill Moves in Much More Favorable Direction
The Financial Markets Committee within the Duma approved a toned-down draft of amendments to Russian Federation Law No. 161-FZ. Of course, this does not remove geopolitical risk, which is quite difficult to call. Obviously, escalation of the Ukraine crisis would be troublesome for Qiwi shares and a de-escalation would be very good news for the…
Amazon.com Improving Third-Party Sales Trend in March
Tuesday morning ChannelAdvisor, which tracks monthly same-store sales growth for third-party sellers on the Amazon and eBay marketplaces, announced sales trends for the month of March. According to ChannelAdvisor, growth of Amazon’s third-party sales accelerated to 26.2% in March from 23.0% in February, and 14% in January (see exhibit 1). On a two-year stacked basis,…
Verint Systems Solid Quarter; New Opportunities in Cybersecurity
Verint’s quarterly results were above expectations regarding total revenue and pro forma earnings per share, primarily driven by the company’s security business, which saw very strong growth this quarter. This quarter likely marks a transition point for the business, as Verint has made significant investments for growth in new areas like cyber-security, anti-fraud, unified CRM/contact…
Eagle Pharmaceuticals’ Ryanodex Receives Patent for Treatment of Exertional Heat Stroke
Eagle Pharmaceuticals announced today that its dantrolene sodium injectable suspension (brand name Ryanodex) has received a patent for the treatment of exertional heat stroke, which will provide coverage through 2023. Patent ‘460 brings the company’s IP surrounding Ryanodex to four issued patents. As the patent coverage surrounding the company’s best-in-class formulation solidifies, Eagle will initiate…
Charles River Laboratories International Galapagos Transaction Update
On March 13 Charles River announced the acquisition of Galapagos NV’s CRO services businesses: Argenta and BioFocus. To finance the acquisition, Charles River used a combination of cash and debt from its existing euro-denominated revolving credit facility. As a result, we estimate 2014 interest expense will increase by $2.8 million, to $9.6 million. CRL trades…
MSC Industrial Direct EPS Miss Widely Expected
Based on weather-driven sluggishness throughout January and February, analysts expect fiscal second-quarter EPS below consensus of $0.86. The midpoint of management’s EPS guidance ($0.83-$0.87) assumed a return to October/November sales growth (5%) in January and February after a slowdown in December (3%). Considering peer results and our surveys, we now believe January organic growth was…
UniFirst Corporation Fiscal Second-Quarter Misses on Margin Pressure
UniFirst reported fiscal second-quarter adjusted EPS of $1.27, which were flat year-over-year and below both our $1.36 estimate and the $1.39 Street consensus. The miss was mainly driven by margin pressure, as multiple factors, such as increased natural gas prices, elevated bad debt expense, and lost leverage in the Specialty Garments business, all hit at…
W.W. Grainger Quarter Likely to Fall Short of the Street
We expect first-quarter EPS to fall below consensus of $2.97, with a likely range of $2.86-$2.92. Street sales growth consensus of 5%, implying 9% growth in March, looks too high. Although March will benefit from the calendar shift of Good Friday, and weather has been more favorable, 9% growth from 3% growth in January and…
The Ultimate Software Group Seminar Reiterates Why Customers Are Choosing UltiPro
Last week Ultimate Software provided prospective customers the opportunity to view demonstrations of the product, learn more about Ultimate Software, and network with other companies facing similar HR and payroll challenges. The seminar was well attended, with roughly 25 attendees. Most of the attendees we spoke with were looking to replace existing ADP or Ceridian…