Pandora falls on news of Apple threat


Service Could Be Direct Competition

Shares of the online radio company are down sharply today after news reports that Apple is planning a rival service. Sources have told the Wall Street Journal that Apple is in licensing negotiations "in what would be a bid by the hardware maker to expand its dominance in online music." The service would apparently compete directly with Pandora Media, whose stock has risen along with bullish option activity since positive earnings results on Aug. 30. P is down about 16 percent percent to $10.58 this morning. 

Smith & Wesson Blows Away Forecasts

The gun maker is spiking higher after beating earnings expectations and raising its full-year guidance, citing strong demand. Fiscal first-quarter earnings came in at $0.28 per share on revenues of $136 million, trumping the consensus estimates of $0.18 EPS and $129.43 million. In its report after yesterday's close, the company projected earnings of $0.85 to $0.90 per share on revenues of $530 million to $540 million for the full fiscal year, well above earlier forecasts. SWHC is up more than 20 percent to $10.84 this morning.

Mattress Firm Holding Sags on Outlook

The bedding retailer beat quarterly earnings forecasts but lowered short-term guidance, citing costs related to its pending $15.8 million buyout of Mattress Xpress. The company reported adjusted second-quarter earnings of $0.42 per share, easily passing the consensus expectation of $0.36 EPS, though revenues came up a bit short at $262 million. It now forecasts adjusted third-quarter earnings of $0.43 to $0.47 per share, down from analysts' expectations of $0.55 EPS. MFRM is down about 12.5 percent to $28.40 in the pre-market.

Ulta Salon's Results Are Looking Good

The cosmetics and fragrance company is surging today after posting second-quarter earnings of $0.54 per share on revenues of $481.7 million, surpassing analyst expectations of $0.51 EPS and $473.8 million. Management also increased its 2013 outlook, estimating earnings of $2.58 to $2.60 per share versus the $2.55 that most analysts had been looking for. ULTA is up nearly 10 percent to $104.63 on tradeMONSTER's extended-hours platform.

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