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Abercrombie plunges on weak profit

Jon "DRJ" Najarian (ask-drj@optionmonster.com)

Earnings Fall Short by 50 Percent

The teen retailer this morning reported earnings of $0.14 percent per share for the second quarter, half of the $0.28 EPS expected by most analysts. Revenues also missed expectations, coming in at $945.7 million versus the estimated $997 million. U.S. same-store sales fell 11 percent as traffic declined, and Abercrombie management said it expects that trend to continue in the current quarter. ANF is down about 18.5 percent to $38.16 on my tradeMONSTER extended-hours platform.

Hewlett-Packard Drops on Sales

The computer company last night reported quarterly earnings of $0.86 per share, meeting the consensus forecast, but revenues of $27.23 billion fell short of the $27.29 billion that analysts had been looking for. Hewlett-Packard CEO Meg Whitman, who earlier this year said revenue growth was possible in fiscal 2014, now says prospects are "unlikely." The company cited slow demand for PCs and weakness in its enterprise business. HPQ is down about 7.5 percent to $23.47 this morning.

Sears Declines as Losses Widen

The department-store operator reported a second-quarter adjusted loss of $1.70 per share, much larger than the $1.10 loss forecast by Wall Street. Revenues of $8.9 billion were also below analysts' expectations of $9.5 billion. Management said this morning that it had not made a decision on the possible sale of its service-contracts unit, an option that had been considered earlier. SHLD is down more than 7 percent to $40.10 in pre-market trading.

Hain Celestial Up on Strong Quarter

The organic-products company said quarterly earnings came in at $0.65 per share, beating the consensus estimate of $0.61 EPS. Hain Celestial also reported revenues of $463.5 million, exceeding the estimated $453.4 million. Management is forecasting earnings of $2.95 to $3.05 per share on $2.03 billion to $2.05 billion for the current fiscal year, exceeding Wall Street's projected $2.94 EPS on revenues of $2.01 billion. HAIN is up 7 percent to $78 in the pre-market.

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