Two MN Stocks Tumble On Earnings Announcements

While Buffalo Wild Wings saw a 25 percent increase in profit and C.H. Robinson saw a 65 percent decrease, the price of both companies’ stocks dropped Wednesday.

Buffalo Wild Wings and C.H. Robinson Worldwide both saw their stocks fall about 10 percent Wednesday after the companies each announced their fourth-quarter financial results.
 
Sally Smith, CEO of Golden Valley-based Buffalo Wild Wings, said 2013 was a great year for the sports bar chain as it expanded its brand with a new restaurant design, launched a new in-house craft beer, continued growing internationally, and invested in a build-your-own pizza chain.
 
Buffalo Wild Wings—which recently opened its 1,000th restaurant—announced that net earnings for the fourth quarter, which ended December 29, totaled $20.8 million, or $1.10 per share, up 25 percent from $16.7 million, or $0.89 per share, during the same period in 2012. Earnings per share were $0.04 higher than what analysts polled by Thomson Reuters had expected.
 
Revenue, meanwhile, totaled $341.5 million, up 12.4 percent from $303.8 million in the fourth quarter of 2012. Fourth-quarter revenue fell short of analysts’ projections of $347 million.
 
Despite its growing profits and sales, shares of Buffalo Wild Wing’s stock were trading down about 11 percent at $125.57 during Wednesday afternoon trading.
 
Looking forward, Smith reaffirmed the company’s 20 percent earnings growth goal for 2014. Smith added that Buffalo Wild Wings expects to open nine new company-owned restaurants in the first quarter, as well as 13 new franchise locations.

 
Over the past year, Buffalo Wild Wing’s stock has climbed nearly 70 percent. According to the Star Tribune, an expectation of 20 percent growth for 2014 may actually be disappointing for analysts given its rapid growth last year.
 
The Minneapolis newspaper said this “lofty stock valuation” paired with an “apprehension over [the company’s] growth” could be the reason for the Buffalo Wild Wing’s stock drop Wednesday.
 
Eden Prairie-based transportation and logistics company C.H. Robinson, meanwhile, reported a steep fall in profits, due in part to higher transportation costs per mile.
 
C.H. Robinson announced that net earnings for the fourth quarter, which ended December 31, totaled $92.9 million, or $0.62 per share, down 63.7 percent from $256.4 million, or $1.58 per share, during the same period in 2012. Earnings per share were $0.06 lower than what analysts polled by Thomson Reuters had expected.
 
Revenue, meanwhile, totaled $3.15 billion, up 6.1 percent from $2.97 billion in the fourth quarter of 2012. Fourth-quarter revenue fell short of analysts’ projections of $3.27 billion.
 
Shares of C.H. Robinson’s stock were trading down about 8.3 percent at $53.77 during Wednesday afternoon trading.
 
C.H. Robinson also recently announced that it’s expanding further into Europe with a new office in Austria.
 
In other news about Minnesota companies’ stock, Eden Prairie-based 3D printing giant Stratasys’ shares fell about 6 percent Wednesday as investors worried about demand for 3D printers after Stratasys competitor 3-D Systems Corporation lowered its full-year earnings outlook.
 
Additionally, Minneapolis-based Ameriprise Financial recently reported a loss in profits for its fourth quarter. Its stock price, however, has held relatively steady—a positive sign considering it was recently named one of the new year’s most disappointing.
 
Ameriprise announced that net earnings for the fourth quarter, which ended December 31, totaled $298 million, or $1.47 per share, down 23 percent from $388 million, or $1.80 per share, during the same period in 2012. Earnings per share were $0.01 higher than what analysts polled by Thomson Reuters had expected.
 
Revenue, meanwhile, totaled $2.95 billion, up 10.5 percent from $2.67 billion in the fourth quarter of 2012. Fourth-quarter revenue was above analysts’ projections of $2.88 billion.