On Monday after the bell the Fast Money traders were taking a close look at Juniper, Liz Claiborne and Alcoa after all 3 names generated trade-able catalysts in the after market.
After the bell, Juniper cut guidance primarily due to weaker-than-expected router demand from service providers, with developments sending shares down 4 percent in extended trade.
Juniper said it now expects fourth-quarter non-GAAP earnings to be in the range of 26 cents to 28 cents a share, compared to its prior expectation of 32 cents to 36 cents a share.
The company expects revenue to be $1.11 billion to $1.12 billion, compared to its prior expectation of $1.16 billion to $1.22 billion.
Juniper is scheduled to report its fourth-quarter results on Jan. 26, after market close.
What’s the trade?
Don’t get spooked. The Fast Money traders say take the Juniper news in context; Acme Packet said much the same last week. “And Juniper got a little ahead of itself,” says Tim Seymour
They say if the news drags down the space, put rival Cisco on your radar. “The chart suggests the stock is breaking out. Cisco, that’s where I’d want to be,” says Guy Adami
Shares of Liz Claiborne dropped more than 10% in extended trade after the company said earnings would come in at the low end expectations, because of negative comps and lower than expected gross margins at its Juicy Couture brand.
In addition, the company said CFO Andrew Warren is leaving the company "by mutual agreement." No replacement was been named for the key position.
What’s the trade?
Both Guy Adami and Karen Finerman think the pullback makes the stock a buy. “I think it’s an opportunity – it doesn’t seem like that big a deal,” Finerman says. “But you’ve got to believe they can turn around the company."
Trader Mike Murphy suggests a wait and see posture. “I’d want to see more traction in this company before I’d get involved.”
(* It's worth noting that late last yearLiz Claiborne sold it's name sake brand Liz Claiborne and several others to concentrate on its Juicy Couture, Lucky Brand and Kate Spade lines. Management intends to change its name to Fifth & Pacific.)
After the bell, Alcoa reported a quarterly loss that met Wall Street's expectations and revenue that was above analysts' forecast, sending shares slightly higher in after-hours trading on Monday.
Looking at the numbers more closely, Alcoa reported a fourth-quarter loss excluding items of 3 cents per share, down from 21 cents a share in the year-earlier period.
Revenue was $5.99 billion, an increase from $5.65 billion a year ago.
Revenue rose 6 percent even as the price of aluminum fell 6 percent in the fourth quarter and 18 percent in the year.
What’s the trade?
Trader Mike Murphy is a buyer, but lower. “I think Alcoa is a great way to play the global recovery – I’m a buyer under $9.”
Tim Seymour feels much the same. “I’m a buyer around 8.50 and I’d play up to $11.”
Guy Adami can’t get excited. “The stock has been sideways to slightly higher since 2009.”
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Trader disclosure: On Jan 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Murphy is long M; Murphy is long CMI; Murphy is long CAT; Murphy is long TYC; Murphy is long SWK; Murphy is long KEX; Murphy is long CSX; Murphy is long BRCD; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU)
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