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Los Angelas, CA -- (SBWIRE) -- 12/07/2012 -- Shares of women's accessories maker Vera Bradley (NASDAQ:VRA) were on the discount rack today, falling as much as 13% after investors were unimpressed with the guidance in its earnings report.The handbag maker actually beat estimates in the quarter, posting EPS of $0.44 a share, up from $0.32 a year ago, and topping expectations of $0.38. Revenues grew 14% to $138.3 million, also ahead of estimates, and CEO Michael Ray credited "the strength of the brand and distinctive products" for the strong quarter. However, management guided fourth-quarter earnings at $0.55 to $0.57, below the Street's projections at $0.60. The fourth quarter is always important for retailers, but the 13% drop seems like an overreaction here. After all, the full-year forecast still tops what the experts had expected, and there is still plenty of growth potential. In other words, the beat in the third quarter outweighs the projected loss in the fourth. I'd see today's drop as a buying opportunity.
Can VRA Recover After The Recent fall? Find Out Here
NovaBay(R) Pharmaceuticals, Inc. (NYSE:NBY), a biotechnology company focused on addressing the large unmet therapeutic needs of the global anti-infective market with compounds such as its proprietary Aganocides(R), today announced that it has priced an underwritten public offering of an aggregate of 5,900,000 shares of its Common Stock, at a price to the public of $1.25 per share, and one-year warrants to purchase up to an aggregate of 4,425,000 shares of Common Stock. The net offering proceeds to NovaBay from this offering are expected to be approximately $6.34 million, after deducting underwriting discounts and commissions and other estimated offering expenses, but excluding the exercise of any warrants. If the warrants are exercised in full NovaBay will receive an additional approximately $6.64 million. The shares of common stock and warrants will be issued separately. The warrants are exercisable immediately upon issuance, have a one-year term and an exercise price of $1.50 per share. The warrants will be certificated, and will be delivered to the investors by physical delivery following the closing. There is no established public trading market for the warrants and NovaBay does not expect a market to develop.
Is NBY Going To Move Lower On This News: FIND OUT HERE
Francesca's Holdings (NASDAQ:FRAN), which faded badly on positive quarterly results Wednesday, tumbled 7% in heavy trading. On Wednesday, the stock rose as much as 11% intraday, after the retailer beat views with quarterly earnings and sales that climbed 71% and 44%, respectively. But Francesca's closed less than 1% higher and below its converging 50-day and 200-day moving averages. Shares of Francesca's Holdi (NasdaqNM:FRAN) are trading at $24.66 and is -8.04% from its 50-day Moving Average price of $26.8167 and -14.04% from its 200-day Moving Average price of $28.6867. The average trading volume is 1134390 shares and its market capitalization is $1.081B.
How Should Investors React To FRAN Now? CHECK HERE
There aren’t many companies reporting on Wednesday but the three that I’m highlighting are extremely interesting. Costco (NASDAQ:COST) reported a strong set of results last time around, and I would advise reading the linked article to see the relationship between margins and revenue growth. Investors will be looking for signs that margins can and revenues can grow together. I think the omens are good here and I’m particularly interested to see if there is any positive commentary on future input costs. Inflation should abate on some non-food items.
Will COST Bounce Back From Here or Will Go Down Continuously: FIND OUT HERE
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