Friday Movers: Quiksilver and AVG Technologies Fall on Heavy Volume - InvestingChannel

Friday Movers: Quiksilver and AVG Technologies Fall on Heavy Volume

On Friday, stocks are moving higher to close out an impressive trading week. Heading into the final hour of the day, the S&P 500 had notched a better than two percent gain over the last five trading sessions.

Among the stocks that are bucking the market trend, however, are retailer Quiksilver (NYSE: ZQK) and Amsterdam-based software and Internet services company AVG Technologies (NYSE: AVG). Both stocks were attracting unusually heavy volume in the wake of corporate developments.

Quiksilver had lost around 4 percent late in the session in the wake of a wider first-quarter loss at the company. AVG Technologies was last down almost 11 percent after CEO J.R. Smith resigned late on Thursday.

The company said that Smith would retain his position until a successor was found, but day-to-day operations will continue to be handled by Chief Operating Officer John Giametteo. According to a press release, Smith, who had been CEO since 2007, will become a member of AVG’s supervisory board.

The company has only been traded publicly on the New York Stock Exchange since February 2012 and the shares have added around 7 percent since the close of its first trading day. At current levels, AVG has a market cap of roughly $757 million.

Quiksilver, a Huntington Beach, California-based retailer of surf-inspired branded apparel, footwear, accessories and related products, reported a wider than expected loss and lower first-quarter revenue prior to the opening bell on Friday.

Chief Executive Andy Mooney said, “Net revenues in the first quarter were impacted by the closure of underperforming retail stores over the last year, as well as disappointing performances in our wholesale channel and in the Americas region.”

Quiksilver reported a Q1 loss of $31.1 million or $0.19 per share, compared to a loss of $22.6 million or $0.14 per share, in last year’s first-quarter.

On an adjusted basis, which is comparable to analysts’ consensus, the company lost $0.16 per share compared to a loss of $0.12 per share last year. Analysts had expected Quiksilver to report a loss of $0.07 per share.

Net sales in the period fell 4 percent to $431.0 million from $449.6 million in the year ago quarter. This missed Wall Street consensus revenue estimates of $465.0 million by a fairly wide margin. Despite the disappointing quarter, and subsequent drop in the shares on Friday, ZQK is still up better than 40 percent in 2013.

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Tags: J.R. Smith, John Giametteo

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