The shares of Cheesecake Factory and Zulily plummeted significantly after both companies reported disappointing financial results for the fourth quarter.
The stock price of Cheesecake Factory tanked more than 10% to $47.69 per share at the time of this writing around 12:23 in the afternoon in New York. On the other hand, the stock value of Zulily declined more than 26% to $16.63 per share.
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Cheesecake Factory 4Q results
The Cheesecake Factory reported net income of $24.5 million or $0.48 in earnings per share, lower than its $33 million net income or $0.62 in earnings per share during the same quarter last year. The company failed to meet its 4Q earnings guidance of around $0.58 to $0.62 per share.
[drizzle]The company said its total revenues were $499.7 million in the fourth quarter, an increase of 5% from its $475.1 million in revenues in the same period last year. However, its revenues did not meet the consensus estimate of $509.1 million.
In a statement, Cheesecake Factory Chairman and CEO David Overton said the company experienced a challenging operating environment during the fourth quarter. Its results were impacted by cost pressures.
Overton believed that the future of Cheesecake Factory is bright with multiple opportunities to continue its leadership position in casual dining. The company opened five new restaurants during the quarter.
The board of directors of Cheesecake Factory declared a quarterly cash dividend of $0.165 per share to shareholders on record before the close of business in February 25. The dividend will be payable on March 10.
Zulily 4Q results
On the other hand, Zulily reported Non-GAAP earnings of $0.11per share for the fourth quarter compared with $0.12 per share in the same period last year. Wall Street analysts expected the company to deliver $0.14 in earnings per share.
Zulily said its revenues for the quarter were $439.3 million. Its revenues were lower than $406.5 million consensus estimate by Wall Street analysts.
In a statement, Zulily CEO Darrel Cavens emphasized that the company ended the year with significant growth across its business given the 72% increase in net sales year-over-year.
According to him, “Our goal is to build zulily into one of the most innovative and profitable consumer retail internet businesses of our time. We have set clear business priorities for 2015…”
The board of directors of the company approved a $250 million stock buyback program over the next 24 months.
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