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Stocks in Motion: CarMax

Mark Martinez

Shares of U.S. Concrete(RMIX) were among the Nasdaq's losers Thursday, falling 24.1% after the company lowered its fourth-quarter earnings guidance and warned that 2005 earnings would fall short of expectations.

The provider of ready-mixed concrete now expects to break even or be slightly profitable in the fourth quarter. Previously, the company said that it would earn 9 cents to 14 cents a share. Analysts polled by Thomson First Call had been expecting earnings of 12 cents a share on sales of $122.8 million. Results were hurt by poor weather in December, which prevented the company from making up ground on its backlog of business. Ready-mixed concrete volume was down by 7.8% in the fourth quarter compared with a year ago, the company said. Looking ahead, U.S. Concrete expects 2005 earnings of 36 cents to 43 cents a share on sales of $530 million to $545 million. Analysts are looking for 2005 earnings of 60 cents a share on sales of $529.3 million. Shares traded down $2.10 to $6.60.

CarMax(KMX) rose 12.9% after the company lifted its fourth-quarter earnings guidance. The used-car seller now expects earnings of 23 cents to 25 cents a share, up from previous guidance of 19 cents to 23 cents a share. CarMax also said that comparable-store sales would now be up 7% to 9%, an increase from previous guidance of 2% to 7%. Analysts had been expecting earnings of 21 cents a share on sales of $1.28 billion. "The strengthening in used-car sales trends that we experienced during the third quarter has continued thus far in our fourth quarter," the company said. Shares traded up $3.82 to $33.35.

Shares of Gymboree(GYMB) fell 7.1% after the children's clothing retailer warned that earnings in the fourth and first quarters would fall below expectations. Fourth-quarter earnings were hurt, the company said, by year-end shrink results that were higher than expected, higher costs at its distribution center and higher fees related to Sarbanes-Oxley Act compliance. As a result, Gymboree now expects to post a profit of 18 cents to 20 cents a share, which excludes a $4.4 million charge. Analysts had been expecting earnings of 26 cents a share. Gymboree also previewed fourth-quarter sales of $172.7 million, which fell below analysts' expectations of $177.3 million.

Looking ahead, Gymboree said that first-quarter earnings would come in between 11 cents and 14 cents a share, which includes a $550,000 charge for severance costs associated with job cuts in its corporate offices. Analysts had been expecting earnings of 24 cents a share during the first quarter. Shares traded down 91 cents to $11.98.

Labor Ready(LRW) rose 8.3% after the provider of temporary staffing services posted fourth-quarter earnings that were better than expected. The company earned $10.4 million, or 21 cents a share, on sales of $272.1 million. Analysts were expecting earnings of 15 cents a share on sales of $267.1 million. Higher gross margins and better cost controls led to the earnings beat. Looking ahead, Labor Ready said it expects first-quarter earnings of 9 cents to 11 cents a share on sales of $240 million to $245 million. Analysts had been expecting earnings of 6 cents a share on sales of $237.6 million. Shares traded up $1.37 to $17.90.

Shares of O'Charleys(CHUX) rose 5.8% after the restaurant operator posted fourth-quarter results that easily topped expectations. The company earned $7.3 million, or 32 cents a share, on sales of $202.2 million. Analysts were expecting earnings of 25 cents a share on sales of $201.7 million. Looking ahead, O'Charleys said that it expects first-quarter earnings of 40 cents to 44 cents a share, in line with analysts' expectations of 41 cents a share. Shares traded up $1.08 to $19.57.

NYSE volume leaders included Sprint(FON), up 12 cents to $24.60; Lucent (LU), down 8 cents to $3.19; Nortel(NT), down 7 cents to $3.17; Pfizer (PFE), down 16 cents to $23.91; News Corp.(NWS), down 32 cents to $16.70; and Qwest Communications(Q), up 20 cents to $4.40.

Nasdaq volume leaders included Cisco(CSCO), down 63 cents to $17.52; JDS Uniphase(JDSU), down 3 cents to $1.99; Microsoft(MSFT), down 28 cents to $26.18; Intel (INTC), down 12 cents to $22.38; Amazon.com(AMZN), down $6.13 to $35.75; Sun Microsystems(SUNW), down 13 cents to $4.26; Oracle(ORCL), down 22 cents to $13.34; and MCI(MCIP), up 47 cents to $20.15.