Diamonds and Dogs
9/11/13Restoration Hardware Holdings Inc. (RH)
Restoration Hardware will need some restoration on its share price today, as it's down 11.88% at $67.02. The home furnishing company saw its shares fall after releasing earnings. While earnings were slightly better than expectations a few areas caused investor concern. Restoration Hardware earnings per share was $0.49, however including one-time items EPS came in at negative $0.46 per share. Further hurting the company was the news that overhead expenses climbed an astonishing 77%, which will greatly cut into the company's profit margin. Restoration shares fell over $9.00 today, but is still trading in its 52-week range of $30.32-$78.50.
SYNNEX Corp. (SNX)
SYNNEX Corp. is skyrocketing today, up 20.05% at $57.59. The business process outsourcing company saw its shares jump after agreeing to acquire IBM's customer-care business. SYNNEX will pay about $430 million in cash, and $75 million in stock for the segment, giving IBM an equity stake in SYNNEX, and essentially making the two preferred partners. As part of the deal, in fact, IBM signed a multi-year agreement to work with SYNNEX for its global customer care and BPO outsourcing needs. SYNNEX expects the transaction to add about $120 million in EBITDA, and roughly $0.55 in adjusted EPS in just the first 12 months after closing. Shares of SYNNEX hit a new 52-week high of $59.08 intraday.