Revised Q3, Q4 outlook and analyst downgrades send Pacific Sunwear spiraling 31% to new 52-week low
Pacific Sunwear of California Inc. (Nasdaq:PSUN) lost nearly one-third its value and sunk to a new 52-week low this morning after four analysts downgraded the stock in the wake of the company’s revision of its third- and fourth-quarter guidance.
Just before the market closed on Thursday, the Anaheim, Calif.-based youth specialty retailer said it now expects earnings from continuing operations of $0.00 to $0.05 per share for the third quarter and non-GAAP earnings from continuing operations of $0.11 to $0.16 per diluted share for the fourth quarter of fiscal 2008.
Analysts were expecting earnings per share of $0.23 for the third quarter and $0.36 for the fourth quarter.
Pacific Sunwear said it continues to be impacted by the effect of a weakening economy on the retail sector.
As a result of the disappointing revision, four analysts downgraded the stock this morning. Robert W. Baird to “neutral” from “outperform;" Friedman Billings to “market perform” from “outperform;” Roth Capital to “hold” from “buy;” and BB&T Capital Markets to “hold” from “buy.”
By mid-morning, Pacific Sunwear is at $5.36, down $2.42 from Thursday’s close, after having traded as low as $5 earlier in the day. Previously the stock had ranged between $7 and $18.44 during the past year.
For detailed price information and news stories on Pacific Sunwear, click PSUN.
