Farmer Bros. Co. (FARM, Financial) shares traded lower in Wednesday trading on the back of the company reporting preliminary lower-than-expected earnings for its fourth quarter. EPS of 7 cents came up short of market expectations by 8 cents, and revenue of $133.8 million also was short by $1.92 million and was down 0.3% year over year. Gross profit is expected to increase $1.2 million, and gross margin is expected to inch by 100 basis points to 40.1%. Income from operations will decline approximately $1.4 million to $1.7 million due to higher one-time costs and fewer one-time benefits. Net income is expected to be about $1.1 million.
Mike Keown, president and CEO, was convinced that it was a very solid quarter to close a transformational year. He also highlighted the progress in anticipated gross margin improvement that reflects the benefits of their restructure.
Shares of giant Apple (AAPL, Financial) dropped more than 1% after pricing Apple's iPhone X at $999. Apparently only for rich customers, the smartphone is the most expensive mobile since Apple launched them –Â approximately $300 more than the new iPhone 8.
On the other hand, Nordstrom Inc. (JWN, Financial)’s stock gained more than 6%. The company is close to a deal to go private. Private equity firm Leonard Green & Partners is behind the operation, and the Nordstrom family will receive around $1 billion.
In other news, Target Corp. (TGT, Financial) shares lost more than 2% on news of hiring 100,000 employees in the U.S. for the upcoming holiday season, up from the 70,000 employees hired in the previous holiday seasons. Further, the launch of a new brand in partnership with HGTV stars Chip and Joanna Gaines, called Hearth & Hand with Magnolia, consisting of an exclusive home and lifestyle brand, was announced.
Disclosure: The author holds no position in any stocks mentioned
