Here are four stock the Yahoo Finance team will be watching today.
First, Facebook, which was up as much as 4% and according to MarketWatch, Facebook was the most active stock after hours. The action came after the announcement that Facebook will be added to the S&P 500, and also the S&P 100 (^OEX) indexes. The changes are expected to take place on Friday, December 20th, after the close. The decision follows Facebook reporting its fourth straight profitable quarter in October, one of S&P's criteria. Shares of a company are said to rise when tapped to be included in the S&P, because many investors track the index and buy shares of companies that enter it. Shares for Facebook are up almost 30% since that botched IPO a year-and-a-half ago.
Next, Lululemon. The yoga apparel retailer released earnings this morning of $0.45 a share beating estimates of $0.41. It also posted revenues of $379.9 million which beating estimates of $376.2 million. Not everything in the report was all roses, though. The company reported estimates for the next quarter at $0.78 to $0.80 a share when analysts were expecting $0.84. And it also expects revenues in the next quarter to be somewhere in the $535 million to $540 million range when analysts were expecting $572 million. Lululemon is in a period of transition right now. Earlier this week it was announced that its founder, Chip Wilson, was stepping down as chairman, and Laurent Potdevin would be replacing outgoing CEO Christine Day. For the year, Lululemon is down almost 8%.
Now, Restoration Hardware (RH), which says unchanged because it trades on the NYSE. The company is expected to release earnings later today. Analysts are predicting Restoration Hardware to post profits of $0.28 a share, which would pummel last year's posting of $0.07. Revenue is expected to grow 37.5% to $390.76 million. Our market guru Mike Santoli says Restoration Hardware has been a hot stock this year and is interesting as a quasi-housing, high-end consumer play. Since its IPO just over a year ago, shares are up over 112%.
Finally RadioShack (RSH), which fell almost 5% yesterday. The drop came after the struggling company announced a new $835 million, five-year financing deal to help it turn things around after seven straight quarterly losses. The company is doubling borrowing costs according to credit sights. The money will be used to help refinance existing debt and leave the company about $200 million of additional liquidity. For the year, RadioShack is up over 23%.
- Restoration Hardware