This Day On The Street
Continue to site
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

Market Preview: A Rally on Fumes

As for Wednesday's scheduled news, Family Dollar Stores (FDO) is slated to report its fiscal fourth-quarter results before the opening bell, and the average estimate of analysts polled by Thomson Reuters is for a profit of 75 cents a share in the August-ended period on revenue of $2.36 billion.

Shares of the Matthews, N.C.-based off-price retailer are up more than 13% so far in 2012, but the stock has pulled back more than 10% since hitting a 52-week high of $74.73 on June 14. The sell side is split on the company ahead of the report with 13 of the 27 analysts covering Family Dollar at either strong buy (5) or buy (8) and the remainder split between hold (12) and underperform (2).

The median 12-month price target sits at $72, implying potential upside of 12% from Tuesday's closing price of $66. Goldman Sachs thinks Family Dollar will likely meet Wall Street's expectations for the quarter but said it would wait for the stock to become a bit cheaper before snapping up shares.

"We expect a roughly in-line report coupled with conservative FY13 guidance as implementation of sales initiatives may have limited 4Q flow-through," the firm said in a preview of the report this week. "With the long-term opportunity intact, we would be buyers on weakness."

Check out TheStreet's quote page for Family Dollar for year-to-date share performance, analyst ratings, earnings estimates and much more.

Also due to report their quarterly numbers on Wednesday are Monsanto (MON), Suntech Power Holdings (STP), and Marriott International (MAR).

The economic calendar features the Mortgage Bankers Association's weekly application activity index at 7 a.m. ET; the employment change report for September from Automatic Data Processing at 8:15 a.m. ET; the Institute of Supply Management services index for September at 10 a.m. ET; weekly crude inventories at 10:30 a.m. ET.

And finally, Xyratex Ltd. fell well short of Wall Street's expectations with its fiscal third-quarter results after Wednesday's closing bell with the company citing weaker than expected enterprise storage demand.

The U.K. based company reported non-GAAP earnings of $10.7 million, or 37 cents a share, for the three months ended in August on revenue of $275.7 million, missing the average estimate of analysts polled by Thomson Reuters for a profit of 44 cents a share in the quarter on revenue of $316.3 million.

For its fourth quarter ending in November, Xyratex forecast an adjusted loss of 15 to 43 cents a share on revenue ranging from $235 million to $285 million.

The stock was the big loser in late trades, last quoted at $7.50, down nearly 14%, on extended volume of roughly 250,000.

Intermune (ITMN) shares were standout gainers though, rising more than 10% to $9.75 on volume of more than 60,000 after the Brisbane, Calif.-based company said it's received Canadian marketing approval for Esbriet, a treatment of mild to moderate idiopathic pulmonary fibrosis in adult patients.

The company expects the drug to be available in January 2013.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FDO $0.00 0.00%
ITMN $73.89 -0.03%
XRTX $13.24 0.08%
AAPL $94.98 -0.21%
FB $116.77 -0.56%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs