Circuit City Dips To New Year-Low On Earnings News

Posted on Thursday, September 20, 2007 4:13 PM
(RTTNews) - Circuit City (CC) fell to a new 52-week low amidst heavy volume levels Thursday. The stock gapped down to open and continued its slide for much of the morning trading before settling into a range that lasted the rest of the day. The dip also broke the stock out of a six-week trading range. Closing at $8.67, the stock lost $1.90 on the day. The dip came after the company reported second-quarter net loss of $62.8 million or $0.38 per share, compared to a profit of $10 million or $0.06 per share in the same quarter last year. The fiscal 2008 second-quarter net loss from continuing operations totaled $63.1 million, or $0.38 per share, compared to a profit of $11.7 million, or $0.07 per share, for the second quarter of fiscal 2007. On average, 25 analysts polled by First Call/Thomson Financial expected a loss of $0.12 per share. Net sales for the quarter were to $2.64 billion, compared to $2.82 billion in the comparable quarter a year-ago. Sixteen Wall Street analysts' consensus revenue estimate came in at $2.78 billion. The company expects continued weakness in its third quarter results, with a net loss from continuing operations less than that of the second quarter. Analysts, on average, expect a loss of $0.02 per share for the third quarter. The company expects to deliver a net profit for the fourth quarter and a full-year net loss from continuing operations. For comments and feedback: contact editorial@rttnews.com
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