Stocks in Motion: Patterson-UTI
Shares of Design Within Reach (DWRI) were among Nasdaq's losers Friday, plunging 37% after the company previewed third-quarter results that were worse than expectations and gave a dismal outlook for the rest of 2005 and 2006.
The furnishings retailer estimates it had a third-quarter loss of $441,000, or 3 cents a share, on sales of $39.4 million. Analysts polled by Thomson First Call expected a profit of 4 cents a share on sales of $39.4 million. A year earlier, the company earned $906,000, or 6 cents a share, on sales of $30.1 million. "Given our third quarter results and outlook for the remainder of 2005, we are disappointed in our current performance," the company said. Design Within Reach didn't release final third-quarter results because its independent public accountant hasn't completed its third-quarter review and because of "continued delays in completing quarter-end procedures as a result of the company's May 2005 systems conversion."
Design Within Reach hacked its 2005 earnings forecast to 4 cents to 7 cents a share from 40 cents to 42 cents. The company projects sales of about $157 million. Analysts had forecast 2005 earnings of 38 cents a share on sales of $164 million. For 2006, the company projects earnings of 11 cents to 21 cents a share, well below Wall Street's forecast of 59 cents a share. The company sees sales of $175 million to $185 million, compared with analysts' projection of $200.8 million. Shares recently were trading down $2.78 to $4.83.
Tarrant Apparel (TAGS) jumped 34% after the company reported it swung to a third-quarter profit and lifted its recently revised 2005 earnings outlook. The apparel maker earned $1.7 million, or 6 cents a share, on sales of $69.6 million, for the third quarter. A year earlier, the company reported a loss of $4 million, or 14 cents a share, on sales of $38.1 million.
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