99 Cents Only Shares Plunge 39% on Report
Shares of 99 Cents Only Stores Inc. plunged 39% on Thursday after the deep-discount retailer reported weak third-quarter earnings that missed Wall Street expectations.
The Commerce-based company said earnings from continuing operations were hurt by the accounting treatment for certain costs associated with discontinued operations, lower gross margin percentages and higher labor costs.
The company’s stock plunged $14.44 to close at $22.25 on the New York Stock Exchange.
For the quarter, 99 Cents Only posted net income from continuing operations of $8.6 million, or 25 cents per share, contrasted with net income of $8.1 million, or 24 cents, a year ago. The forecast consensus of analysts surveyed by First Call Corp. was 29 cents per share.
Revenue rose to $109.4 million from $88.72 million.
At a Glance
Other Southern California company earnings, excluding one-time gains and charges unless noted:
* Homestore.com Inc., a Thousand Oaks-based online home sales listing company, said its third-quarter loss narrowed to $27.1 million, or 33 cents a share, from $34.2 million, or 65 cents, a year earlier. Revenue rose 200% to $62.2 million.
* Pasadena-based bank holding company IndyMac Bancorp reported net income from continuing operations of $23.5 million, or 35 cents a share, contrasted with $19 million, or 23 cents, a year ago. Revenue rose 23% to $86.7 million.
* El Segundo-based International Rectifier Corp. reported fiscal first-quarter net income of $42.1 million, or 63 cents per share, contrasted with $5.1 million, or 10 cents, a year ago. Revenue rose 64% to $249.4 million.
* Los Angeles sporting goods maker K2 Inc. reported net income of $4.5 million, or 25 cents a share, for the third quarter, up 36% from $3.3 million, or 20 cents a share, a year ago. The company said quarterly sales increased 17% to $163.5 million from $139.9 million a year ago. The company credited strong sales in snowboards, scooters and marine products for the improved performance.
* Footwear maker K-Swiss Inc., based in Westlake Village, reported lower third-quarter net income of $6.3 million, or 59 cents per share, contrasted with $9.3 million or 80 cents, a year ago. Revenue fell 24% to $60.5 million. The company said it had 23% fewer orders as of Sept. 30 compared with a year ago.
* Newhall Land & Farming Co., based in Valencia, reported a third-quarter net loss of $612,000, or 2 cents per share, on revenue of $46.5 million. This contrasts with net income of $11.9 million, or 38 cents, on revenue of $73.2 million, a year ago. Analysts had expected 7 cents.
* Torrance-based metal service center Reliance Steel & Aluminum Co. reported third-quarter net income increased 7% to $15.8 million, or 57 cents per share, contrasted with $14.8 million, or 53 cents, a year ago. Earnings reflect a 3-for-2 stock split. Sales rose 17% to a record $443.7 million.
