Diamonds and Dogs
Teva Pharma (TEVA) is cleaning house. The drug company is up 16% after announcing a restructuring plan and additional measures to improve business and financial performance, including reducing the workforce by over 25% or 14,000 people while suspending the dividend for ordinary shares and ADSs. Not good timing with the holidays around the corner.
Pier One (PIR) is sinking. The home decor company is down 28% back to the September and October lows after missing earnings estimates and guiding fourth quarter below consensus. Revenues fell 1.4% year over year to $469.2 million due to heightened promotional activity. E-Commerce represented 26% of net sales in the quarter. The third quarter financial performance was impacted by the hurricanes in Texas and Florida, as well as deeper than expected promotional activity in October and November. One analyst at Gordon Haskett downgraded the stock to a Sell from Hold with a $3.50 price target.
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