Quality Distribution, Inc. (NASDAQ:QLTY) spike up by 6.52% or 61 cents to trade close at $9.96 after announcing its fourth fiscal quarter preliminary results for fiscal fourth quarter & fiscal 2010 below consensus.
Shares of the company headquartered in Tampa, opened at $8.7 and traded in the range of $8.68-$10.03 with volume of 343,486 shares, above the daily average of 98,315 shares. The stock has 52 week trading range of $3.71-$11.07. Currently, the market capital of the stock stands at $213.72 million with P/E of 27.26.
On Feb 1, the company announced its outlook for fiscal fourth quarter and fiscal year 2010. It said that it expects fourth quarter net loss to be within the range of 53 to 51 cents a share. This loss includes about $9.1 million in charges related to a debt refinancing and $3.2 million of restructuring costs.
Excluding the above charges, the adjusted profit of 5 cents to 6 cents a share has been expected below the street consensus of 7 cents a share.
Revenue of about $165 million has been predicted, below the Street prediction of revenue of $167.5 million.
For fiscal 2010, the company expects total revenue to be approximately $686.0 million and adjusted net income to be within the range of 29 to 30 cents a share. Analysts on an average are expecting to post total revenue of $690 million and adjusted net income of 31 cents a share for fiscal 2010.
The Company also announced the launch of a public offering for about 4 million shares of common stock. It offers about 2 million shares of its common to the public and certain affiliates of Apollo Management, L.P. ("Apollo") are offering for resale to the public approximately 2,000,000 shares of Quality's common stock owned by them. To cover over-allotments, it has granted underwriters an option to buy up to 600,000 shares. It intends to use the net proceeds from this offering to retire or repay existing indebtedness.
Quality Distribution, Inc. (QDI) operates chemical bulk tank truck network in North America through its wholly owned subsidiary Quality Carriers, Inc. (QCI) and is a provider of ISO (International Organization for Standardization) container and depot services through its wholly owned subsidiary Boasso America Corporation (Boasso). The bulk tank truck carriers consists primarily of liquid and dry bulk chemicals, including plastics and bulk dry and liquid food-grade products.
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