The market was pushed and pulled all day long, with most traders unsure of what to make of a surprisingly poor job-growth pace for March. By the time the closing bell rang though, the S&P 500 was at 2,355.54, down a mere 0.08%.
It was anything but a ho-hum session for CarMax, Inc (NYSE:KMX), AngioDynamics, Inc. (NASDAQ:ANGO) and Domino’s Pizza, Inc. (NYSE:DPZ) though. These three names dished out the most pain to the most people, albeit for understandable reasons.
Domino’s Pizza, Inc. (DPZ)
The end of the first fiscal quarter was only seven days ago, and already we’re hearing sales warnings about key companies.
Domino’s Pizza was today’s biggest victim on that front, with DPZ shareholders being cautioned by an M Science report that its domestic growth for Q1 would likely be “well below the rough consensus estimate.” Domino’s neither confirmed nor denied the rumor, saying it doesn’t respond to third-party prognostications. The market certainly responded though, sending DPZ to a loss of 5.8% for the day.
All will be revealed on April 27, when the company reports last quarter’s results. Analysts are expecting Domino’s Pizza to post income of $1.16 per share on revenue of $615.5 million. Both are up from year-ago figures of 89 cents per share of DPZ and sales of $539.17 million, respectively.
AngioDynamics, Inc. (ANGO)
AngioDynamics didn’t do anything wrong to prompt the 4% drubbing it took today. Rather, a bunch of major shareholders want out. Instead of those owners selling their ANGO stakes in the open market and creating havoc as well as beating the stock’s price down, the company is serving up a less-damaging secondary offering to let them unload their shares.
All told, AngioDynamics intends to facilitate the sale of 2.35 million shares of ANGO at a price of $16.20 each. That’s roughly where the stock closed today.
As of the latest tally, there were 36.5 million outstanding shares, 29.6 million of which were in the float. This secondary offering is a sizeable 6.4% of all outstanding shares, taking an understandable toll.
CarMax, Inc (KMX)
Last but not least, while the headlines suggest used car lot chain CarMax should have been up today following its Q4 earnings report from yesterday morning, a closer look at the fine print reveals why KMX shares ended the day down to the tune of 2.6%.
For the quarter ending in February, CarMax earned 81 cents per share on revenue of $4.05 billion. The top line was up 9% year-over-year, and earnings grew 14%. Analysts were only calling for a profit of 79 cents per share of KMX on sales of $3.97 billion.
Nevertheless, with the price of used cars — the company’s only business — already falling and poised to really take a tumble over the course of the next couple of years, CarMax’s margins are severely threatened. The company also noted a tougher lending environment for its tier 3 (subprime) segment, which is a key source of high-margin revenue for the organization. Tier 3 sales fell from 14.5% of revenue in the same quarter a year ago to only 9.4% of sales last quarter.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.