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Urban Outfitters, Guess? and Bob Evans in Earnings Spotlight; Vacuum-Maker Rises 23%

Dan Berman
Hot Stock Minute
Urban Outfitters, Guess? and Bob Evans in Earnings Spotlight; Vacuum-Maker Rises 23%

Urban Outfitters (URBN) reports after the closing bell. The retailer is expected to post profits of 48-cents a share, up about 15% from a year ago on revenue that's risen to $768-million. If the company meets expectations, it will be the fifth straight quarter of double-digit earnings growth, though a slowdown from the prior quarter when net income jumped 39%. The gains are part of a turnaround that began after some missteps in 2010 and 2011. The stock is actually down this year by 3% after a bunch of zig-zagging. But it's up 26% over the past 52-weeks.

Another clothing chain reporting today is Guess (GES). Profits for the company are expected to shrink faster than a new pair of jeans the first time they're washed with earning per share of 36-cents down from 49-cents a year ago. Earnings are predicted to fall, but not by nearly as much to $625-million. One calculation made two weeks ago showed puts on Guess outnumbering call 11-to-1. That could be in part because the stock began the month hitting a multi-year high. It has pulled back a bit since then but is still up 23% in 2013.

Reporting after the bell is Bob Evans (BOBE). Revenue here is expected to tumble almost 20% though with just a penny drop in earnings to 57-cents a share. Nevertheless the company may look appetizing to investors. Over the past year it has reduced outstanding shares by 4.2% and the stock yields 2.2%. Shares have risen 15% so far in 2013.

Edwards Group (EVAC) is up more than 23% in early trading. Edwards is a British industrial technology firm which makes things like vacuum pumps. It is being bought by Atlas Copco out of Sweden. The price tag could be as much as $1.6-billion. Not bad when you consider the company's market cap right now is under $1-billion. Prior to this morning's announcement, shares of Edwards Group were up 38% year-to-date.