Regis Corporation’s (RGS) fourth quarter operating earnings of 59 cents per share were ahead of the Zacks Consensus Estimate of 46 cents per share. Earnings also topped the prior-year period results of 55 cents per share. Results reflect the benefits of the cost containment measures taken by the company.   However, Regis reported a fourth quarter net loss of 11 cents per share as a result of the write-down of its 30% ownership interest in Provalliance, the largest operator and franchisor of hair salons on the European continent. Revenues for the quarter were down 2.5% to $625 million. Consolidated total same-store sales decreased 4.0% and were a negative for the first time in the company’s 87-year history. Consumer behavior has changed in this difficult economic environment. Consumers are cutting back on expenditures and as a result, a slowdown in spending and lengthening of visitation patterns is ...

Shares of Sell-rated Regis Corporation (RGS) are trading down more than 20% this morning after the company released fourth quarter sales figures and announced a large offering of common stock and convertible notes. Although fourth quarter same-store sales were down a disappointing 4.0%, with consolidated revenues down 2.5%, the most significant news was the announcement of the share and note offerings. The company intends to offer 11.5 million shares of common stock, or up to 13.225 million shares. after granting the underwriters additional shares. This equates to an increase of more than 30% in the total number of shares outstanding if the underwriters request their full allotment. Additionally, the company intends to offer $125 million in convertible senior notes due 2014. The company plans to grant the underwriters the option to purchase an additional $18.75 million in aggregate principal of the convertible notes. No pricing ...

For Immediate Release

Chicago, IL - April 9, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: GlaxoSmithKline plc (GSK), General Growth Properties (GGP), Agria Corp (GRO), Regis Corporation (RGS) and Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA).

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Here are highlights from Wednesday's Analyst Blog:

Glaxo's Avandia Issue Priced-In

Sales of Avandia have been significantly negatively impacted due to safety concerns, but it appears they have recently stabilized. We believe that sales are now at, or very near, their bottom. While sales of Avandia have been

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We are downgrading our rating on shares of Regis Corporation (RGS) from Hold to Sell. Given the current challenging operating environment, the recent weakness in same-store sales, and the concerns regarding the company's ability to stay in compliance with its financial debt covenants, we believe that a multiple at the low end of the company's average historic range is warranted at this time.

Second-quarter same-store-sales fell well short of management's expectations, and we anticipate further declines in 2009. Our price target of $9.00 equates to a multiple of roughly 7x our 2009 EPS estimate.

Although Regis is the clear leader in its industry, and is well positioned to benefit given an improvement in the economic environment, we currently expect that the company's operations will likely deteriorate further before eventually recovering. "RGS" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research