The Most Active Stocks for Thursday, November 7, 2019

Shareholders are making mincemeat out of Roku (ROKU) this morning on widening losses.  

In fact, the stock is down 15%, or $21 a share after posting a third quarter loss of 22 cents, which was worse than estimates for 18 cents.

“ROKU broke a string of 2019 beats reporting a mixed 3Q and a frankly surprisingly mixed 4Q despite its (temporary) leadership position in the distribution of Disney+,” Pivotal Research analyst Jeffrey Wlodarczak said, as quoted by CNBC.  “We are not surprised by the … decline indication in the stock in the after-market as an undeniably rich 12+X ’20 revenue multiple simply does not leave a lot of room for anything but material beats.”

At the moment, Pivotal has a sell rating on ROKU with a price target of $60. 

Party City (PRTY)

Shares of Party City are down 44% on the day after posting a loss, and cutting its full-year outlook.  Its net loss widened to $39.7 million, or $3.02 a share, from a loss of $2.0 million, or three cents year over year.  Excluding non-recurring items, its adjusted loss per share was 28 cents. Revenue fell to $540.2 million, which is below estimates of $551 million.  Things got worse after it cut its 2019 guidance to 84 cents to 91 cents from $1.26 to $1.36 and for revenue to $2.35 billion to $2.38 billion from $2.40 billion to $2.45 billion, as highlighted by MarketWatch.  

Ralph Lauren Corp. (RL)

Ralph Lauren is up 13%, or $13.34 a share after topping profit estimates.

“With slowing sales growth in North America, Ralph Lauren has been sending more of its products to international markets, especially China, where recent results from other high-end fashion companies show domestic demand for luxury products is strong despite a slowing economy,” noted Reuters.

Net income came in at $182.1 million, or $2.34 per share from $170.3 million, or $2.07 per share, year over year. Adjusted EPS was $2.55, which beat estimates for $2.39.  Revenue of $1.71 billion increased from $1.69 billion year over year.  

Same-store sales in North America were up 2%.  Same-store sales in Europe were up 3%. In Asia, same-store sales were up 1%.