It’s a day of diverging indexes as the S&P 500 is up by 0.37% while the NASDAQ is down by 0.20%. The diverging results are due to various earnings reports that affect the indexes differently. Among the stocks well in the green are Spirit Airlines Incorporated (NASDAQ:SAVE), Foresight Energy LP (NYSE:FELP), Tile Shop Hldgs, Inc. (NASDAQ:TTS), Heron Therapeutics Inc (NASDAQ:HRTX), and Superior Industries International Inc. (NYSE:SUP). Let’s find out why investors are loading up on shares of these stock and see what the group of hedge funds in our database think of each of them.
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Updated Guidance Powers Spirit Airlines
Spirit Airlines Incorporated (NASDAQ:SAVE) is 5% higher after the company issued an update on its first quarter guidance. The airline now expects operating margin to be around 21.5%, versus the previous range of 19% to 20.5%. The improved margin is due to better-than-expected revenue, primarily due to higher-than-expected ticket revenue per passenger segment. Adjusted cost per available seat mile excluding fuel is expected to fall by 2% when including a special one-time ratification incentive payment, versus previous guidance of 2.5%-to-3.5%. When excluding that payment, CASM ex-fuel would have fallen by 4.5%, ‘of which approximately one and half percentage points is related to timing of costs that will push to later in the year’. Revenue per available seat mile is expected to decline by 14% year-over-year. 35 funds that we track held shares of Spirit Airlines Incorporated (NASDAQ:SAVE) at the end of December. That was down by four from the end of the prior quarter.
Some Debt Lenders Amenable to Restructuring for Foresight Energy
Foresight Energy LP (NYSE:FELP) shares have surged by 28% today after the company disclosed that consenting lenders have agreed to support a proposed global restructuring of the partnership’s indebtedness, including a proposed amendment and restatement of a credit agreement. Interested investors can find the full details of the agreement in the company’s Form 8-K SEC filing. The senior lenders will cut the credit facility by $75 million and trim the facility by another $25 million at the end of 2016. There is also an anti-hoarding provision that requires Foresight to pay the lenders if the company’s cash holdings rise above $35 million. No funds that we track had shares of Foresight Energy LP (NYSE:FELP) at the end of December.
On the next page we examine why Tile Shop Hldgs Inc, Heron Therapeutics Inc, and Superior Industries International Inc. are all in the good graces of investors this morning.
Tile Shop Higher On Earnings
Tile Shop Hldgs, Inc. (NASDAQ:TTS) shares are 10.9% in the green due to a better-than-expected earnings report. For the first quarter, Tile Shop Hldgs, Inc. (NASDAQ:TTS) earned $0.14 per share on revenue of $84.72 million, beating estimates by $0.03 per share and $4.71 million respectively. Sales jumped by 16.1% year-over-year due to a 13.2% increase in comparable store sales (or vice-versa). As of April 19, Tile Shop has 116 stores in 31 states. For the full 2016 year, the company expects revenue of $320-to-$329 million, comparable store sales to rise by mid-to-high single-digits, adjusted EBITDA of $65-to-$69 million, 9-to-12 new store openings, and non-GAAP earnings per share of $0.40-to-$0.45. 18 elite funds owned roughly 14.8% of the company’s float at the end of December, out of 786 funds in our database.
FDA Sees No Substantive Deficiencies in Heron’s SUSTOL
Heron Therapeutics Inc (NASDAQ:HRTX) is 6.5% higher today after the company provided an update on the New Drug Application (NDA) for its SUSTOL Injection, extended release. The FDA indicated that there are no substantive deficiencies in the NDA and the agency has begun labeling discussions with Heron. SUSTOL is a long-acting formulation of the FDA-approved 5-hydroxytryptamine type 3 (5-HT3) receptor antagonist granisetron currently being developed for the prevention of both delayed and acute chemotherapy-induced nausea and vomiting associated with moderately emetogenic chemotherapy or highly emetogenic chemotherapy. As of December 31, 14 smart money funds owned over half of Heron Therapeutics Inc (NASDAQ:HRTX)’s float.
Superior Shares Higher on Better-Than-Expected Preliminary Earnings
Superior Industries International Inc. (NYSE:SUP) upped its first quarter guidance today and investors have sent the company’s stock up by almost 10% because of it. Superior now expects first quarter EPS of $0.54, which would be up by 238% year-over-year, and first quarter adjusted EBITDA of $27 million, which would represent an increase of 102% year-over-year. First quarter value-added sales are expected to be $102 million, an expected increase of 24% from the amount pulled in during the first quarter of 2015. The company also raised its 2016 outlook for adjusted EBITDA margin to 24.1%-to-24.8%. Jim Simons‘ Renaissance Technologies owned 220,500 shares of Superior Industries International Inc. (NYSE:SUP) at the end of December.