Sticking with earnings news this morning, Quiksilver announced that it suffered a fiscal third-quarter net loss of $7.9 million, or 6 cents per share, compared to its year-ago profit of $5.3 million, or 4 cents per share. Excluding charges, the company would have banked a profit of 2 cents per share. Sales during the quarter jumped 16.5% to $612.8 million. The consensus estimate was for a profit of 2 cents on revenue of $568 million. In other news, the firm announced that it is developing a year-round line of clothing for women aged 18 to 24, which it plans to unveil in fall 2008.
Technically speaking, the security has sidled along support at the 12.60 level since the end of July while hitting resistance at its 10-day and 20-day moving averages. From a longer-term perspective, the equity is now perched on support at its rising 50-month moving average. Since January 2002, the stock has closed only 1 month below this trendline.
Heading into this earnings report, investors were extremely skeptical of ZQK. Schaeffer's put/call open interest ratio rests at 0.80, which is higher than all but 11% of the readings taken during the past 52 weeks. What's more, short interest is a whopping 13.4 times the stock's average daily trading volume. An unwinding of these bearish bets could definitely add some lift to the shares.