Friday, November 2, 2012

Big Losers: Cirrus Logic (CRUS), Rite Aid Corporation (RAD)

Cirrus Logic, Inc.(NASDAQ:CRUS)’s,  the audio and energy chip makers, fiscal second quarter  profit more than tripled with the  rise in sales due to launch of its new products where Apple Inc. is a major buyer which also uses the company’s audio chips in its IPads and IPhones.

Cirrus logic’s forecast third-quarter revenue between $270 million and $300 million. Analysts of Thomson Reuters estimates revenue of $238 million.

For the last quarter ended Cirrus posted a profit of $35.4million or 51 cents a share, a 100% rise in comparison to last year. Excluding amortization, stock-based compensation and other items, earnings rose by 39% to 79 cents per share in comparison to last year which beats the analyst’s expectation of 71 cents per share.

Further the revenue rose 91% to $193.8 million also gross margin narrowed to 51.7% from 53.5%.

However, shares of Cirrus logic fell by $4.64 to $36.14 which is a decline of 11.38% in the previous trading session.

Eight stores of Rite Aid Corporation(NYSE:RAD) were substantially damaged by Hurricane Sandy and the company expects the storm to hurt the sales in November.

188 Rite Aid drugstores as of Wednesday night were either closed or were operating with no power. 790 stores were closed on Monday night.

In October sales at stores open at least a year, or same-store sales, fell 1.1%.

Rite Aid estimated that about 1.1 percent of a 1.5 percent increase in same-store sales of general merchandise and about 0.2 percent of a 4.7 percent increase in prescriptions filled at comparable stores came from pre-storm sales associated with Hurricane Sandy.

The company assures of re-opening the affected stores as quickly as possible.

Shares of the company fell 4.31% to $1.11.

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