Shares of The Talbots, Inc. (Public, AMEX:TLB) fell in the opening session after the Women's clothing retailer failed to match the analysts estimates for its second quarter, while reported higher than estimated quarterly profit as tighter inventory management boosted its margins.
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The company said that its second quarter profit improved to $941,000, or 1 cent a share, reversing a loss of $24.5 million, or 45 cents a share in the year ago quarter. Excluding items, Talbots earned 14 cents a share, beating the analysts' average forecast of 5 cents
Sales slid 1.3%to $300.7 million, missing the analysts' estimate of $313.9 million.
Analysts were expecting the company to report earnings of 5 cents a share.
The company raised its full-year adjusted profit outlook to 84 cents - 92 cents a share while its earlier guidance was 83 cents a share. However, it forecast sales rising in the range of "low-single-digits," below its previous guidance of sales rising in the range of 3% to 5%.
The company expects third-quarter profit of 22 cents to 28 cents a share.
Analysts currently estimated a profit of 30 cents in the third quarter and 83 cents a share for the year.
Shares of TLB plunged 8.50% to $10.18.
Verint Systems Inc. (Public, NASDAQ:VRNT) shares surged over 4.75% to $25.39 after the company reported higher than expected fiscal second-quarter earnings and lifted estimates for the year.
The maker of surveillance software and equipment said that it earned $11.5 million, compared with $1.6 million, in the year-earlier quarter. On an adjusted basis, the company earned 69 cents a share in the latest quarter.
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Revenue soared to 6.7% to $180.7 million.
Analysts were expecting the company to report earnings of 50 cents on $175 million in revenue.
Gross margin improved to 66.6% from 65.1%. But that was more than offset by a reduced operating margin, excluding charges.
It now expects full year revenue of $710 million to $720 million and operating margin excluding charges of 22% to 24%. Prior estimates were $700 million to $715 million and 20% to 23%, respectively.
Verint Systems Inc. (Verint) is a provider of Actionable Intelligence solutions and value-added services. Its solutions enable organizations of all sizes to make decisions to improve enterprise performance.
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