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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

Small-Cap Snapshot: GameStop tumbles after video game retailer spikes plans to hunt for a buyer

Sanmina, Brinker International and Ethan Allen Interiors are also making news

Shares in GameStop Corp (NYSE:GME) plunged Tuesday after it ended plans to sell itself after being in talks with prospective buyers for several months, prompting investors who had been betting on a deal to sell off shares.

The videogame retailer’s stock plunged 26.3% to $11.41 after the company said its board ended its strategic review. The company’s board and its advisers began the review in June to determine ways to enhance shareholder value.

READ: LithiumOre advances its processing plant by completing purchase of an additional 120 acres

Sanmina Corp (NASDAQ:SANM) stock rocketed up after the manufacturing company beat earnings expectations and issued stronger-than-expect guidance. The company reported fiscal first-quarter net income of $38 million, or $0.54 cents a share, compared with losses of $154.9 million, or $2.16 cents a share, in the year-ago period.

Shares in the San Jose, California-based components manufacturer soared 20.6% to $32.88.

Brinker International Inc (NYSE:EAT) stock plunged Tuesday after the operator of Chili's and Maggiano's restaurant chains reported fiscal second-quarter earnings that matched expectations, but spooked investors by showing compressing restaurant margins due to high rent. Net income for the quarter to December rose to $32 million, or $0.83 a share, from $25.3 million, or $0.54 a share, in the same period a year ago. Meanwhile, restaurant-level operating margin came in at 12.4% of sales versus 14.9% a year ago as higher rent costs, elevated labor and rental expenses were factored in.

Brinker stock which was up in premarket trade, fell nearly 9.5% to $42.94.

Ethan Allen Interiors Inc (NYSE:ETH) stock fell after the Danbury retailer of home furnishings and accessories missed fiscal second-quarter revenue estimates. It reported fiscal second-quarter earnings of $0.46 per share on revenue of $197.2 million. The consensus earnings estimate was $0.46 per share on revenue of $201.8 million. Revenue fell 0.7% compared to the same quarter a year ago.

Ethan Allen stock fell nearly 6% to $17.61.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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The Markets
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