Sears Holdings Corp (SHLD) Warns on Fourth Quarter Earnings


Although Sears Holdings Corp (NASDAQ:SHLD) is not expected to report their fourth quarter earnings until February 24, this morning the company provided a financial update to the market, warning that their numbers may come in a bit shy of expectations.

Sears Holdings Corp (NASDAQ:SHLD) said that they expect to report $7.3 billion in revenue for the quarter, which comes in shy of the $7.43 billion that analysts were looking for. This would also represent a year-over-year revenue decline of 9.86% when compared to the fourth quarter of 2014. EBITDA for the quarter is also expected to be a loss of between $50 and $100 million, compared to a $20 million gain for the same quarter a year ago.

The company now expects to increase the rate in which they have been closing stores in an effort to boost their numbers this year. Sears Holdings Corp (NASDAQ:SHLD) shares are trading down $0.73 or 4.36% in the pre-market this morning. The stock closed at $16.73 during the last trading session. It is down 32.65% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 23.78%.

The institutional sentiment decreased to 0.73 in Q2 2015. It’s down 0.01, from 0.74 in 2015Q2. The ratio dived, as 36 funds sold all their Sears Holdings Corp shares they owned while 56 reduced their positions. 22 funds bought stakes while 45 increased their total positions. Institutions now own 70.54 million shares which is 11.68% less than the previous share count of 79.87 million in 2015Q2.

Rbs Partners L.P. holds 32.21% of its total portfolio in Sears Holdings Corp, equating to 22.35 million shares. Fairholme Capital Management Llc owns 26.65 million shares representing 17.35% of their total US portfolio. Moreover, Force Capital Management Llc has 9.99% of their total portfolio invested in the company, equating to 2.11 million shares. The Ontario – Canada-based Chou Associates Management Inc. has a total of 6.96% of their portfolio invested in the stock. Old West Investment Management Llc, a California-based fund reported 399,851 shares owned.

Since February 27, 2015, the stock had 7 insider buys, and 0 sales for a total of $23.04 million in net activity. Lampert Edward S bought 200 shares worth $5,000. Berkowitz Bruce R bought 7,200 shares worth $163,008. Balagna Jeffrey A sold 11,094 shares worth $303,199.

Sears Holdings Corporation is an integrated retailer and a holding firm of Kmart Holding Corporation and Sears, Roebuck and Co. (Sears). The company has a market cap of $1.76 billion. The Firm operates through two business divisions: Kmart and Sears Domestic. It currently has negative earnings. The Firm operates a network of stores with approximately 1,725 full-line and specialty retail stores in the United States, operating through Kmart and Sears.