Diamonds and Dogs

8/10/12

Roundy's Inc. (RNDY)

Roundy's Inc. fell hard today, down 24.63% at $7.71. The retail grocery store saw its shares deteriorate after they released an earnings report that missed analyst estimates. Second-quarter earnings per share came in at $0.42 versus a forecast of $0.43, and sales were reported at $996.8 million which again missed estimates of $999.5 million. The missed earnings report also led the company to lower its full year forecast. For the full year, the company, whose chains include Pick 'n Save and Rainbow Foods, now expects per-share earnings of $1.10 to $1.24, down from $1.30 to $1.42 forecast earlier. Roundy's hit a new 52-week low today, leaving investors with a bad taste in their mouth.

Fusion-io Inc. (FIO)

Fusion-io exploded today, up 27.78% at $26.86. The company saw its shares rally after releasing an earnings report that blew out estimates. Adjusted EPS was announced at $0.09 on revenue of $106.6 million versus the consensus of $0.03 and $96 million. Furthermore, Fusion went on to increase its full year outlook. Management now sees 2013 revenue growth of 45%-50%, translating into revenue of $521 million-$539 million, well ahead of Wall Street's view of $478.8 million. CEO David Flynn discussed growth prospects in a meeting, stating, "We believe we are still in the early stages of demonstrating the transformative potential of software defined storage solutions that deliver greater performance and efficiency for customers at a fraction of the cost of legacy systems." Fusion-io is trading in the middle of its 52-week range, possibly leaving more room to the upside.

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