Day Trader Alert: Big Pre-Market Drops on Guidance (MOLX, STM, VPRT, WSM)

We have seen earnings disappointments or guidance disappointments from many companies over the recent weeks.   Molex Inc. (NASDAQ: MOLX), STMicroelectronics N.V. (NYSE: STM), VistaPrint (NASDAQ: VPRT), and Williams-Sonoma (NYSE: WSM) are all trading lower this morning after their earnings and guidance.

Molex Inc. (NASDAQ: MOLX), an electronics component company, slashedguidance due to the weakening trends.  The company took its guidancedown to $0.18 to $0.22 EPS after a $0.04 restructuring item, and tookrevenues down to $750 to $800 million.  First Call estimates were $0.35EPS and $over $851 million in revenues.  Shares are indicated lowerdown to around $13.00 after closing at $14.44 yesterday.  Shares weredown to $12.67 in after-hours trading Tuesday, and the 52-week tradingrange before this was $12.96 to $30.61.

STMicroelectronics N.V. (NYSE: STM) announced that its earnings havenow swung to a loss and announced lower guidance for the comingquarter.  It has not gone out on a limb to call 2009 yet, but so faroverseas trading has this one down.  Shares were trading even worsethan this earlier this morning, but shares are down 3.5% at $8.36pre-market.  Its 52-week trading range is still intact at $7.42 to$17.25.

VistaPrint (NASDAQ: VPRT) is trading sharply lower.   The onlineprinter for marketing materials and business forms slashed guidanceafter yesterday’s close, but its past quarter was stronger thanexpected with a 35% gain in average daily order volume.  Shares areindicated down 16% on this volume at $20.29.  This will mark new recentlows as the 52-week trading range of $20.71 to $48.60.

Williams-Sonoma (NYSE: WSM) is indicated down by roughly 10% pre-marketafter the company issued a strong earnings warning for the second halfof the year.  It now sees a loss for this last quarter and next quarterhas been more than cut in half.  With overly pricey kitchen items, itis obvious that price-conscious consumers are opting to go tocheaper competitors to buy the same items for less.  Its 52-weektrading range may remain intact today as that has been a range of $9.01to $31.88. This was a $45.00 stock back in 2006.

Jon C. Ogg
October 29, 2008