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Friday, September 7, 2012

Two Big Movers: Pandora Media Inc (NYSE:P) & Smith & Wesson Holding (NASDAQ:SWHC)


Fears of competition from Apple send Pandora shares reeling

Pandora Media Inc (NYSE:P)’s stock is in free fall mode on reports that Apple Inc is planning to start a streaming radio service.  According to sources, Apple which already has its itunes store, is in discussions with record labels for music licenses.

Advertising generates most of Pandora’s revenues and it already has competition in the form of  Clear Channel, Sirius XM Radio and Spotify.

As Apple is still the discussion stage, it will be a while before Apple launches its online streaming service and runs ads on it.

Can Pandora Bounce Back? Find Out Here

There were no comments from spokespersons of either company. Pandora’s shares slid 18 percent and were trading at $10.30.  The company’s second quarter results declared last week were better than expected.

Smith and Wesson takes off on spectacular results

Meanwhile, on Thursday, Smith & Wesson Holding Corporation(NASDAQ:SWHC) shares shot up 19 percent thanks to higher than expected second quarter earnings.  In its fiscal first quarter which ended July 31, the gun maker earned a net income of $18.9 million or 28 cents per share.  Analysts had forecast profits of $12.87 million or 18 cents per share.

The company has also upped its guidance for the year.  It expects revenues in the range of $530 million to $540 million and EPS of 85 to 90 cents.  This will be higher than analysts’ expectations of $498.2 million in revenues and EPS of 57 cents.

Will SWHC Continue To Move Higher? Find Out Here

In its second quarter, the company expects $119 million in sales and earnings of 13 cents per share.  Although, there is a seasonal slowdown in gun sales every year from the end of summer to the beginning of fall, the company doesn’t expect sales to slump much this time around.

Smith and Wesson shares traded at $10.75 in the after trading session, up by $1.75 or 19.4 percent.

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