Hot Stocks: AnnTaylor, Boeing Among Thursday's Winners
Earnings updates and contract wins provided some of the catalysts behind the most actively traded stocks on Thursday.
AnnTaylorStores gained after the women's apparel retailer posted in-line quarterly results but announced full-year guidance that tracked above Wall Street expectations. AnnTaylor said it expects 2007 earnings in a range of $2.15 and $2.25 a share, compared with analysts' consensus estimate of $2.18 a share.
Credit Suisse reiterated a "neutral" rating on the stock. "An in-line quarter and second quarter may be challenging; however, merchandise is improving at Loft and the company has good long-term growth opportunities," said analyst Tracy Kogan.
Boeing rose 3% after Air France said it ordered more than $4 billion worth of Boeing's planes. The stock hit an all-time high on the news.
Shares of La Jolla Pharmaceutical jumped after the tiny drugmaker said its experimental lupus drug was well tolerated by patients at higher dose levels, according to recent clinical trial data.
Among downside movers, computer network storage retailer Network Appliance plunged after the company issued disappointing first-quarter sales guidance, citing lower technology spending by U.S. corporations. The company said late Wednesday it expects revenue to decline 6% to 7% sequentially, compared with analysts' expectations for a sequential rise of 1.3%.
Shares of rival EMC rose more than 2% on the news.
Goldman Sachs computer hardware analyst Laura Conigliaro cut the price target on shares of Network Appliance to $35 from $40 and lowered calendar 2007 earnings estimates. "Though we're getting more interested, we would not buy Network Appliance now with too much dependent on NetApp's ability to confine the miss to the July quarter, where we have no visibility," Conigliaro said.
Computer hard drive components maker Komag said Thursday it expects second-quarter revenue lower than its previous forecast, due to weaker sales volume and lower average selling prices. The San Jose, Calif.-based company did not provide specific guidance due to "uncertain market conditions," but said results were likely to be "significantly reduced."
In late April, Komag projected quarterly revenue in a range of $228 to $233 million. Analysts currently expect revenue of $231 million. Komag shares fell more than 12%.