Stocks Stubbornly Resilient

Indie Research

Stocks traded lower on EU worries, and some poor commentary from Fossil (FOSL - News) seemed to have an unusually large impact on the stocks of other "affordable luxury" retailers. However, stocks remain almost stubbornly resilient, battling back to finish well off their lows. We're still looking for the market to trend lower as the temperature outside warms up, but we'd view any big pullback as an investment opportunity.

The Bill Collector Stocks Index was the top performing tickerspy Index on the day, led by Portfolio Recovery Association (PRAA - News) with a 10% gain. The Jewelry Retailer Stocks Index was the day's worst performing tickerspy Index, with Fossil down -38%.

Stocks slipped on the day, with the Dow off -72 points to 12,936. The S&P dropped -6 points to 1,364, while the Nasdaq slipped -11 points to 2,946. Oil fell -93 cents to $97.01 a barrel, while gold dipped -$34.60 to $1,604.50 an ounce.

In earnings news, DirecTV (DTV - News) said its first-quarter profit climbed 9% to $731 million, or $1.07 per share, up from $674 million, or 85 cents per share, a year earlier. Revenue climbed to $7.05 billion from $6.32 billion. Analysts had expected a profit of $1.05 a share on revenue of $7.03 billion. The company added 81,000 net U.S. subscribers during the quarter. Shares of DirecTV edged up 0.3%.

Shares of Fossil plunged -37.6% after the watch and accessory company issued disappointing second-quarter and full-year EPS guidance. For the current quarter, Fossil expects to earn 77-79 cents a share on revenue of $662.5 million, excluding the impact of currency changes. Analysts were expecting EPS of 94 cents on revenue of $653.8 million. For the full year, Fossil expects to earn $3.40-$3.50 a share on sales of $3-$3.1 billion. Analysts were expecting profits of $5.56 per share on sales of $3 billion. In the first quarter, Fossil earned $58.1 million, or 93 cents per share, up from $55.8 million, or 86 cents per share, a year earlier. Revenue jumped to $589.5 million from $537 million. Analysts had expected a profit of 92 cents on revenue of $618.1 million. Three pros counted Fossil among their top holdings at the end of Q1 and nearly 170 tickerspy members own the stock in their portfolios.

Shares of Mako Surgical (MAKO - News) tumbled -36.6% after the medical device maker said its first-quarter loss widened to -$11.7 million, or -28 cents share, from -$11 million, or -27 cents per share, a year earlier. Revenue soared 51% to $19.6 million. Analysts had expected a loss of -20 cents a share on revenue of $23.7 million. The company also lowered the outlook for the sale of its RIO system from 56-62 systems to 52-58 systems.

TreeHouse Foods (THS - News) said its first-quarter profit rose to $22.1 million, or 60 cents per share, from $19.8 million, or 54 cents per share, a year earlier. On an adjusted basis, TreeHouse earned 63 cents compared with 59 cents a year earlier. Revenue increased to $523.8 million from $493.5 million. Analysts had expected a profit of 60 cents per share on revenue of $523.9 million. The company issued full-year profit guidance of $3.00-$3.15 a share. Analysts were expecting EPS of $3.09. Shares of TreeHouse rose 0.8%. Seven pros counted TreeHouse among their top holdings at the end of Q1 and more than 40 tickerspy members own the stock in their portfolios.

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