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Equities in Focus - Ross Stores, Inc. (NASDAQ:ROST), Springleaf Holdings Inc (NYSE:LEAF), Montage Technology Group Ltd (NASDAQ:MONT)

Equities in Focus - Ross Stores, Inc. (NASDAQ:ROST), Springleaf Holdings Inc (NYSE:LEAF), Montage Technology Group Ltd (NASDAQ:MONT)
Written by
Chris Sandburg
Published on
November 14, 2014
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Ross Stores, Inc. (NASDAQ:ROST) received an investment-rating downgrade to sell from hold Friday from Canaccord Genuity, even as the firm raised its price target on the off-price retailer's stock to $72 from $68. The downgrade comes ahead of ROST's release of Q3 results, set for about 4 p.m. ET on Thursday, Nov. 20. As those results approach, Canaccord Genuity told clients the "consensus appears high and valuation inflated," hence its downgrade. It also comes after ROST's shares reached a fresh all-time high of $83.10 in Thursday's session. Ross Stores, Inc. (NASDAQ:ROST) closed Thursday's session at $82.56, and the new price target from Canaccord Genuity, while higher than its prior target, implies expectations for the stock to drop some 13%.Springleaf Holdings Inc (NYSE:LEAF) reported a better-than-expected Q3 earnings and struck an upbeat tone for the company's growth prospects. The consumer finance company said non-GAAP earnings rose to $0.55 per share from $0.45 a year ago, exceeding the $0.51 average estimate from analysts polled by Capital IQ. Net interest income was $303 million, down from $355 million. After providing for finance receivable losses, net interest income was $200 million, up from $192 million a year ago.Springleaf Holdings Inc (NYSE:LEAF) reported net income was meanwhile $426.8 million or $3.70 per diluted share compared to a loss of revised loss of $92.6 million or $0.93 a year ago. The swing to profit was mainly driven by a $641.3 million net gain on the sales of real estate loans and related trust assets. "Our principal objective in the consumer lending business has been to realize the benefits of scale in our branch operations by continuing to grow receivables per branch, and we reached that objective again this quarter, helping to drive core earnings up 42% from last year," CEO Jay Levine said in a statement. "The combination of solid performance in our branches and our very strong cash position leaves us well-positioned to continue to grow."Montage Technology Group Ltd (NASDAQ:MONT) reported Q3 earnings that fell short of the analysts estimates while sales were equal to the Street's view. The fabless provider of analog and mixed-signal semiconductor solutions said non-GAAP earnings rose to $0.40 per diluted share from $0.38 a year ago but missed the $0.44 average estimate from analysts polled by Capital IQ. Revenue rose 13.8% to $46 million, in line with the consensus. Reported income meanwhile rose to $10.21 million or $0.33 per diluted share from $8.04 million or $0.31 a year ago.Montage Technology Group Ltd (NASDAQ:MONT) said that following an "extensive review" of its financial results, it has concluded that no changes are required. For Q4, Montage Technology said it expects revenue between $47 million and $51 million and a gross margin between 56% and 59%. The Street is at $48 million in revenue for Q4. MONT closed higher 0.3% on Thursday, in the upper half of the 52-week range between $13.52 and $26.70.

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