Diamonds and Dogs
8/8/12Orbitz Worldwide Inc. (OWW)
Orbitz Worldwide had a crash landing today, down 25.97% at $3.45. The online discount travel company saw its shares lose altitude after releasing lower than expected earnings and cutting its full year forecast. Gross bookings for the Chicago travel site declined 1 percent year over year to $2.97 billion and net income was cut in half to $4.6 million. CEO, Barney Haverford blamed the decline on European worries, saying, "We saw economic conditions in Europe worsen during the quarter." CFO, David Belmont elaborated on that statement saying, "As we look to the second half, the outlook is more challenging than it was a quarter ago, due to a number of factors including the economic challenges in Europe, weakness in air volume in the U.S. online travel agency channel and a stronger U.S. dollar." Orbitz's discounts can now include their common stock, not just flights and hotels.
Dean Foods Company (DF)
Dean Foods stock was enticing today, up 40.58% at $17.46. The company saw its shares soar after it posted a market-topping quarter, issued upbeat guidance, and outlined plans for an IPO of its natural foods subsidiary. Adjusted EPS came in at $0.36 versus the consensus of $0.31, furthermore the company sold 20% of its WhiteWave segment. The company is managing its milk supplies much better and management said it will use the WhiteWave proceeds to pay down existing debt. For the full year, management said it now expects EPS of $1.18-$1.28, well above its prior view of $1.10-$1.20. CEO Greg Engles said, "In total, strong operating segment performance, and a continued focus on efficiency and leverage reduction should drive continued strong operating income and EPS growth." Dean foods hit a new 52-week high today.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.