Stocks in Motion: CKX
Updated from 11:21 a.m.
Shares of Movie Gallery (MOVI) were among the Nasdaq's losers Wednesday, falling 15.4% after the company warned of weak second-quarter sales.
The video rental company said that recent weakness in the home video release schedule is having a "significant adverse impact" on its results. Previously, the company said that same-store sales would be down just slightly. Movie Gallery also said that an "unimpressive slate of titles" coming from movie theaters would continue to hurt sales over the next few months. Analysts polled by Thomson First Call are expecting second-quarter earnings of 54 cents a share on sales of $522.6 million. Shares traded down $5.05 to $27.84.
CKX (CKXE) fell 1.6% after the company said it would sell 20 million shares at $11 apiece, a 20% discount to Tuesday's closing price. CKX plans to use about $150 million in proceeds to repay most of its outstanding debt. Some $36 million will be used to satisfy the deferred consideration obligation that is part of its acquisition of 19 Entertainment; the remaining $15 million will be used for working capital purposes. Shares traded down 22 cents to $13.50.Shares of Littelfuse (LFUS) fell 0.7% after the company cut its second-quarter guidance. The circuit protection products company now expects earnings of 18 cents to 20 cents a share on sales that will be roughly flat with first-quarter sales of $122 million. Littelfuse previously forecast earnings of 28 cents to 32 cents a share on an 8% sequential jump in sales. Analysts had been expecting earnings of 30 cents a share on sales of $129.6 million. The company blamed its poor outlook on weakness in electronic distributor sales in North America and China. What's more, after a strong April, automotive sales have also weakened in North America and Europe, it said. Shares traded down 20 cents to $29.40.
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