Shares of Gander Mountain ( GMTN) were among Nasdaq's losers Wednesday, falling 35% after the outdoor-products retailer withdrew its 2005 guidance. Gander Mountain said it no longer expects to post pretax income of at least $16 million, flat same-store store sales or $850 million in sales for the year. The company anticipates third-quarter same-store sales will fall 9% to 10%. Gander Mountain blamed high energy prices, uncertainty in the economy and warm weather for a sales shortfall. "Sales and gross margin in the third quarter have been disappointing," the company said. "However, we still have our most important selling period ahead of us with the peak hunting seasons and the holiday season, and we have taken steps to maximize current opportunities in response to the softer sales environment." Analysts surveyed by Thomson First Call had expected full-year sales of $857 million and earnings of 57 cents a share. Shares recently traded down $2.90 to $5.35. P.F. Chang's ( PFCB) fell 7% after the restaurant operator posted in-line third-quarter earnings but lowered its fourth-quarter outlook. The company earned $8.4 million, or 31 cents a share, on sales of $203 million for the third quarter. Analysts, on average, predicted earnings of 31 cents a share and sales of $203.4 million. A year earlier, the company earned $8.2 million, or 31 cents a share, on sales of $174 million. P.F. Chang's now expects fourth-quarter earnings of 33 cents a share on sales of $214 million. Previously, the company forecast earnings of 38 cents a share on sales of $219 million. The company attributed the reduced guidance to lower traffic expectations, fewer unit sales weeks and the closure of its restaurant in Metairie, La. Analysts forecast fourth-quarter earnings of 37 cents a share and sales of $218.7 million.
P.F. Chang's also announced the resignation of its chief financial officer. Kristina Cashman, who will stay with the company until a replacement is found, said she is leaving the Asian-restaurant chain to pursue other opportunities and to spend more time with her children. The company has begun looking for Cashman's replacement. Shares were trading down $3.61 to $46.70. Shares of School Specialty ( SCHS) tumbled 9% after the company said it won't be acquired by LBW Holdings, an affiliate of Bain Capital Partners. "Despite substantial efforts by both parties to move forward with the acquisition, there were unforeseen circumstances and structural as well as markets-related challenges which led to the mutual termination of the transaction," Bain Capital said. In early October, shares of School Specialty were hammered after the company said backers of its going-private deal with LBW Holdings terminated certain financing for the acquisition. School Specialty said the decision to terminate the financing was related to "disappointing results in August and September and concerns about near-term financial and operating performance." At the time, the company warned that fiscal 2006 earnings would fall well short of Wall Street expectations. On Wednesday, School Specialty reaffirmed its recently reduced fiscal 2006 guidance, saying that it still expects adjusted earnings of $2.17 to $2.31 a share on sales of $1.03 billion to $1.06 billion. Analysts project 2006 earnings of $2.12 a share and sales of $1.05 billion. For fiscal 2007, the company anticipates earnings of $2.20 to $2.40 a share on sales of $1.08 billion to $1.15 billion. The projection brackets analysts' mean estimate for fiscal 2007 earnings of $2.34 a share and sales of $1.12 billion. Shares were down $3.53 to $33.97. Select Comfort ( SCSS) rose 10% after the mattress maker posted third-quarter results that topped expectations. The company earned $11.4 million, or 30 cents a share, on sales of $175.8 million. Analysts expected earnings of 27 cents a share on sales of $174.6 million. A year earlier, the company earned $8 million, or 20 cents a share, on sales of $144.3 million. Same-store sales jumped 15% during the recently completed third quarter.
Looking ahead, Select Comfort now expects 2005 earnings of $1.05 to $1.08 a share, shaving the bottom end from its previous guidance of $1 to $1.08 a share. Analysts predict full-year earnings of $1.04 a share. Select Comfort shares rose $1.93 to $22.01. Agco ( AG) shares sank nearly 9% after the agricultural-equipment maker posted weaker-than-expected third-quarter earnings and issued a bleak fourth-quarter forecast. The company's profit fell to $27.8 million, or 31 cents a share, from $34.8 million, or 36 cents a share, a year earlier. Adjusted earnings, which exclude restructuring charges and one time items, were also 31 cents a share, below analysts' mean estimate of 33 cents a share. Sales rose slightly to $1.23 billion from $1.22 million, but missed Wall Street's target of $1.25 billion. For the fourth quarter, Agco sees weakness in the South American and Western European markets, with lower production levels. The company forecast adjusted earnings of 32 cents to 37 cents a share, well below analysts' estimate of 55 cents. For all of 2005, Agco sees adjusted earnings per share of $1.48 to $1.53, compared with analysts' forecast of $1.74. Shares recently slid $1.44 to $15.35. Shares of Ryder System ( R) rose 6% after the transportation and supply-chain management company posted third-quarter results that topped forecasts. The company earned $63.3 million, or 98 cents a share, up from $54.3 million, or 83 cents a share, a year earlier. Sales rose to $1.49 billion from $1.31 billion. Analysts projected earnings of 93 cents a share on sales of $1.42 billion. Ryder forecast fourth-quarter earnings of 89 cents to 94 cents a share. Analysts are expecting 94 cents a share. Shares were trading up $2.05 to $36. NYSE volume leaders included Lucent Technologies ( LU), down 3 cents to $3.08; Pfizer ( PFE), down 1 cent to $21.19; Micron Technology ( MU), up 23 cents to $12.88; Texas Instruments ( TXN), up 3 cents to $28.51; Doral Financial ( DRL), down $2.74 to $8.31; Sprint Nextel ( S), down 61 cents to $23.04; General Electric ( GE), up 3 cents to $33.94; and Exxon Mobil ( XOM), down 10 cents to $57.10.
Nasdaq volume leaders included Flextronics ( FLEX), down $2.90 to $9.20; Microsoft ( MSFT), up 18 cents to $25.21; Sirius Satellite Radio ( SIRI), up 13 cents to $6.31; Novavax ( NVAX), down 9 cents to $5.44; RF Micro Devices ( RFMD), down 21 cents to $5.39; Sun Microsystems ( SUNW), down 4 cents to $3.93; Amazon.com ( AMZN), down $5.46 to $40.71; Intel ( INTC), up 15 cents $23.26; and Cisco Systems ( CSCO), up 4 cents to $17.16.