NEW YORK (
) -- Shares of
fell sharply in extended trades on Wednesday after the Maryville, Tenn.-based casual restaurant operator missed Wall Street's profit expectations for its fiscal third quarter.
Ruby Tuesday blamed tough winter weather for the shortfall, saying it was hit harder than most other chains because the majority of its locations are in the Eastern region of the United States.
The company reported earnings of $16 million, or 25 cents a share, for the three months ended March 1 on revenue of $319.1 million with same-restaurant sales down 1.2%. That performance was down from last year's net income of $17.8 million, or 28 cents a share.
Excluding items, Ruby Tuesday posted a profit of 24 cents a share, 7 cents below the average estimate of analysts polled by
for earnings of 31 cents a share. The company estimated the bad weather lowered earnings by 3 to 4 cents a share while negatively impacted same-restaurant sales by 1.5%-2%.
"While our earnings per share trailed the prior-year results, excluding the winter weather impact which hit us harder than most of our peers since approximately 90% of our Company-owned restaurants are concentrated in the Eastern U.S., we would have been in line with our prior-year results, even after absorbing the investments we have made this year," said Sandy Beall, the company's founder, chairman, and CEO, in a statement.
Beall continued: "These investments, which include our fresh bread program served complimentary with every entree, incremental labor for service enhancements, and new marketing brand research initiatives, should all yield attractive returns."
The company also gave a full-year outlook that's markedly below the current consensus view, saying it sees earnings of 74 to 82 cents a share vs. the average analysts' profit estimate of 90 cents a share.
The stock was last quoted at $12.02, down 10.1%, on volume of nearly 400,000, according to
. Based on a regular session close at $13.37, the shares have gained 16% in the past year but they've pulled back since reaching a 52-week high of $15.57 on Jan. 6.
Wall Street was mildly bullish on the company ahead of the report. Of the nine analysts covering the stock, five were at either strong buy (3) or buy (2) with the remainder at hold. The median 12-month price target sits at $18, implying upside of more than 33% from closing levels.
Bed Bath & Beyond
Shares of Union, N.J.-based
Bed Bath & Beyond
surged after the closing bell as the specialty retailer's latest results came in much better than anticipated.
The company reported fiscal fourth-quarter earnings of $283.4 million, or $1.12 a share, for the three months ended in February on revenue of $2.51 billion, well ahead of the average estimate of analysts polled by
for a profit of 97 cents a share on sales of $2.39 billion. Same-store sales jumped 8.5% in the latest quarter.
Bed Bath & Beyond, which operates more than 1,100 stores, offered up a bullish outlook for the full year as well. The company said it sees earnings of 58 to 61 cents a share for its current fiscal first quarter and earnings growth of 10% to 15% for the full year.
That projection implies an outlook for a profit of $3.38 to $3.53 a share for the year. Wall Street's current consensus estimates are for earnings of 60 cents a share in the first quarter and $3.33 a share for the year.
The stock was up 9.3% to $53.98 in late trades with more than 1.17 million shares changing hands. Prior to the after-hours spike higher the shares were flat since the start of 2011. Wednesday's close at $49.39 was 3% below the stock's 52-week high of $50.95 reached on Feb. 22.
was a big mover to the downside after the close after the Camarillo, Calif.-based developer of power conversion equipment
, citing "market conditions and near-term feed-in-tariff uncertainty in Italy and Germany."
The company now sees revenue of $240 million to $245 million for its fiscal first quarter ended April 3, down from a prior projection for revenue of $260 million to $290 million. Wall Street is looking for a profit of 26 cents a share from Power-One in the first quarter on revenue of $275.5 million.
"Based on current developments, we still anticipate European countries such as Italy and Germany will continue to support solar adoption to reduce reliance on non-renewable sources of power," said Richard Thompson, the company's CEO, in a statement. "Further, for the remainder of 2011 and 2012, we believe we are better positioned to handle similar regional anomalies due to our expanded product line and focus on developing new markets, including the United States, China and India."
The stock was last quoted down 4.1% to $7.95 on volume of a little less than 80,000, according to
. Although the shares fell 3.5% to $8.29 in Wednesday's regular session, they had still more than doubled in the past year, although the 52-week high of $13.04 came back in early August 2010.
Other stocks making notable moves in the after-hours session included
( BLUD), which rose 7% to $21.40 on volume of nearly 120,000 after the Norcross, Ga.-based maker of blood transfusion products posted a strong quarter and lifted its full-year earnings outlook; and
Pep Boys - Manny, Moe & Jack
, which tacked on 3.6% to $14.10 on volume of around 60,000 after the auto parts and services chain reported fiscal fourth-quarter earnings of $8.4 million, or 16 cents a share, as sales rose 5.4% year-over-year to $477.4 million.
Written by Michael Baron in New York.
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