Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, December 4, 2009

Article Excerpt

AEROPOSTALE INC., $28.95, symbol ARO on New York, fell 10% this week, even though it reported higher sales and profits in the latest quarter. In the three months ended October 31, 2009, Aeropostale’s revenue rose 17.8%, to $567.8 million from $482.0 million a year earlier. Earnings jumped 46.9%, to a record $62.6 million, or $0.94 a share, from $42.6 million, or $0.64 a share. The company’s wide variety of clothing, low prices and aggressive promotions were the main reasons for its strong results. In the month of November, sales rose 13.5%, to $228 million from $200.9 million a year ago. But even though same-store sales jumped 7%, they missed consensus expectations of 7.7%. The company expects to earn $1.20 to $1.24 a share in the current quarter. But the low end of that estimate is below the $1.22 a share that analysts are expecting. Investors fear that the company may not be able to sustain its rapid growth if consumer spending…