ADRs in Focus: Luxottica up a day after reporting 1Q results
NEW YORK—U.S. shares of Luxottica Group SpA, the Italian eyewear company that makes brands including Ray-Ban, Prada and Chanel, rose Friday as investors mulled Luxottica's first-quarter results.
On Thursday, the company said its profit fell 19 percent due to weak U.S. sales and the cost of buying U.S.-based Oakley. Luxottica earned 34 cents per American Depositary Receipts, which was a penny below analyst expectations. In U.S. dollars, sales grew 23 percent, to $2.09 billion, which was more than analysts expected.
Luxottica ADRs, which fell 12 cents Thursday, gained $1.35, or 5.2 percent, to $27.58 in Friday afternoon trading. ADRs, or American Depositary Receipts, are securities that allow U.S. investors to trade shares of companies based overseas.
Citi Investment Research analyst Alberto Checchinato said Oakley's performance was "healthy," and retail sales were a bit better than he expected.
The company maintained its 2008 outlook, and Checchinato said Luxottica believes business has improved in April. He kept a "Buy" rating on the stock.
Last month, Luxottica said it expected to earn between $1.29 and $1.32 per ADR, at constant exchange rates. The two analysts reporting to Thomson Financial expect a profit of $1.62 per share.
The Bank of New York Europe ADR index rose 2.11 points to 177.82 in afternoon trading.
