Renren Inc & Ann Inc Jump On Solid Earnings (RENN, ANN)
Renren Inc (NYSE:RENN) shares are trading sharply in the pre-market session after the company swung profitable in the fourth quarter thanks to increased advertising sales. Moreover, the company provided solid revenue outlook.
The company projects to generate revenue of $177 million to $183 million this year, ahead of analysts’ estimates of $175 million. For the current quarter, it expects $28 million and $30 million in revenue, just missing analysts’ target of $30 million.
In the fourth quarter, the company said that it earned $44.3 million, or 11 cents an ADS, reversing a year ago loss of $33.9 million, or 46 cents an ADS. On an adjusted basis, the company earned $48.2 million, while analysts were estimating 2-cent per-ADS. Revenue during the quarter grew 57% to $32.8 million, matching the company’s February projection. Gross margin trimmed to 70.5% from 79.8%.
Shares of RENN soared 41 cents or 7.61% to $5.74 in the pre-open session. The stock is still down over 65% in the past one year.
Ann Inc (NYSE:ANN) shares are up in the pre-market session after the company projected higher than estimated FY2012 revenue.
The company projects to generate revenue of $2.375 billion in FY2012 and $560 million in first quarter, compared to analysts’ estimates of $2.21 billion and $560.83 million respectively. Gross margin rate performance is expected to be 55.0%.
For the fourth quarter, the company said that it earned 10 cents a share, topping analysts’ estimates by 2 cents.
Revenue during the quarter came at $566.7, well below analysts’ estimates of $577.91 million.
“Looking ahead to 2012, we are focused on continuing LOFT’s strong momentum as well as improving the sales productivity and profitability at Ann Taylor stores. We will continue to aggressively manage all operational aspects of the business, while remaining focused on accelerating our strategic growth initiatives that are expected to benefit this year and beyond.”
Shares of ANN are up 3.53% to $26.72 in the pre-market.
