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Omar Venerio
Omar Venerio
Articles (1560) 

3 Stocks Move Monday

Lennox, GNC Holdings fall; Cal-Maine Foods rises

July 22, 2019 | About:

Shares of Lennox International Inc. (NYSE:LII) fell almost 5% after the company posted second-quarter results Monday. Revenue declined 6.8% from the prior-year quarter to $1.1 billion, falling short estimates by $40 million. The company posted earnings of $3.74 per share, missing analysts' estimations by 38 cents.

In the trimester, gross profit was $332 million, down 8% on a GAAP basis and down 6% on an adjusted basis. The gross margin was 30.2%, down 60 basis points on a GAAP basis and down 140 basis points on an adjusted basis. It was negatively affected by a tornado and unfavorable weather conditions.

Looking ahead the third quarter, the company expects adjusted revenue growth of 2-5%. It also projects GAAP earnings per share between $11.91 and $12.51, and free cash flow of about $390 million for the full year.

During the quarter ended March 31, Chuck Royce (Trades, Portfolio) reduced his holding by 28.93% to 8,000 shares, Joel Greenblatt (Trades, Portfolio) curbed his position by 59.4% to 1,198 shares and Pioneer Investments (Trades, Portfolio) trimmed its portfolio holding by 1.56% to 33,760 shares. More bearish were Ray Dalio (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Caxton Associates (Trades, Portfolio), each of whom sold out the stock. Jim Simons (Trades, Portfolio) increased his position in the stock by 11.35% to 122,600 shares.

Shares of Cal-Maine Foods Inc. (NASDAQ:CALMgained 0.3% on Monday after announcing fourth-quarter results. The company posted 41 cents in losses per share and $280.57 billion in revenues, a 36.7% year-over-year decline. The company fell short of earnings estimates by 15 centsand of revenue expectations by $13.66 million.

“Our disappointing results for the fourth quarter reflect more challenging market conditions. The average market price in the Southeast for conventional eggs dropped 52.0 percent for the fourth quarter of 2019 compared to the fourth quarter of 2018 and was down 17.1 percent for the year,” Chairman and CEO Dolph Baker said.

In the quarter, the company sold 254.8 million dozen eggs, up 1.1% year-over-year, but declining prices of 37% depressed revenue and the bottom line.

During the quarter ended March 31, Pioneer Investments (Trades, Portfolio) established a new position in the company with 3,600 shares, and Jim Simons (Trades, Portfolio) increased his holding by 2.06% to 781,600. Chuck Royce (Trades, Portfolio) reduced his holding by 11.54% to 777,153 shares, while financial genius Paul Tudor Jones (Trades, Portfolio) sold out the stock. Diamond Hill Capital (Trades, Portfolio) boosted its holding by 31.31% to 1,391,908 shares.

Shares of GNC Holdings Inc. (NYSE:GNC) fell more than 1.5% Monday after the company announced second-quarter results. Revenue declined 13.6% from the prior-year quarter to $534 million, falling short of estimates by $19.3 million. Earnings of 13 cents per share beat analysts' estimates by cent.

In the trimester, adjusted Ebitda reached $61.6 million, which was 120 basis points higher compared to the same quarter a year ago. Operating income was $12.1 million, compared with $15.9 million.

During the quarter ended March 31, Mario Gabelli (Trades, Portfolio) trimmed his position in the company by 0.92% to 215,000 shares, while Philippe Laffont (Trades, Portfolio) increased his position by 65.03% to 180,498 shares and Jim Simons (Trades, Portfolio) did the same, almost tripling his position to 653,999 shares.

Disclosure:The author holds no position in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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