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.
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.