This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Del Monte Falls Despite Indices' Gain

(Story updated with analyst view of earnings report and share price changes.)
NEW YORK ( TheStreet) -- Del Monte (DLM) shares extended their fall Friday after the company reduced its full-year sales growth target to 1% to 3% year over year.

Del Monte's previous sales growth guidance was in the range of 2% to 4%.

Del Monte

The company reaffirms its full-year earnings from continuing operations guidance of $1.38 to $1.42 a share.

Del Monte stock was tumbling by 2.4% to $12.52 Friday morning, in contrast to the major indices, which were higher after the government provided a labor market picture that was much less grim than expected.

Stephens analyst Farha Aslam expected downside pressure on Del Monte stock to be limited by historically low valuation and the company's share repurchase program. "We believe as earnings visibility increases, so will the stock price."

The day before, during late Thursday morning, Del Monte shares were falling by 1.2% to $13.01. Meanwhile, the major indices were flat to modestly higher as investors digested a slew of economic news including: the Labor Department's announcement that initial jobless claims declined last week, the National Association of Realtors announcement that its pending-home sales metric ticked up in July, and slightly higher factory orders and lower worker productivity.

Del Monte lowered its sales forecast after reporting first-quarter net sales decline of 1.1% to $804.6 million, short of the average expectation of $829.47 million. Net sales for the quarter were especially weak in Del Monte's consumer products business, falling 6%. However, net sales at Del Monte's pet products business grew 3.6%.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs