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Market Update

Discovery Ad Revenue Jumps, Toll Brothers Profit Beat on Strong Home Demand


Author: Mukesh Buch
ticker.com
Last Update: 12:12 PM EST February 27 2018

12:10 PM New York City, New York – AES Corp reaffirmed annual growth forecast through 2020. Carter''s announced share buyback plan. Discovery''s revenue jumped on higher advertising. Macy''s jumped on strong profit and sales. Toll Brothers profit soared on higher demand.

Tollbooth Index dropped 62.72 or 0.4% to 14,665.92.

Earnings Review

The AES Corporation (AES) soared 5.3% or 55 cents to $11 after the electricity producer and distributor said total revenues in the fourth-quarter ending in December fell 0.8% from a year ago to $2.6 billion.

Net loss in the quarter widened to $1.3 billion or $2.03 per diluted share from $949 million or $1.44 in the same quarter last year.

The electricity producer forecasted earnings per share in the range of $1.15 to $1.25 and reaffirmed average annual growth rate of 8% to 10% through 2020.

Carter''s, Inc (CRI) plunged 10.6% or $13.04 to $109.73 after the apparel retailer said net sales in the fourth-quarter ending in December soared 10% from a year ago to $1 billion.

Net income in the quarter surged 55.8% to $135.7 million or $2.84 per diluted share from $87.1 million or $1.76 in the same quarter last year.

Carter''s estimated fiscal first-quarter net sales to jump 5% and diluted earnings per share to advance 15% compared to $5.76 in fiscal 2017.

Carter''s plans to buy back up to $500 million of stocks through open market as the management believes its stock is undervalued.

Discovery Communications Inc (DISCA) advanced 4.2% or $1.06 to $26.24 after the broadcasting services provider reported revenues in the fourth-quarter ending in December jumped 11% from a year ago to $1.9 billion.

Net in the quarter swung to a loss of $1.1 billion or $1.99 per diluted share from profit of $304 million or 51 cents in the same quarter last year.

As of December 31, 2017, Discovery booked non-cash goodwill impairment charge totaling $1.3 billion for its European unit.

The broadcasting services provider said its Discovery Channel and Animal Planet benefited from higher advertising income across its networks. Total advertising revenues rose 3% to $3.1 billion and distribution revenues jumped 8% to $3.5 billion.

“Solid global advertising and distribution revenue growth helped us achieve our 2017 strategic and financial objectives,” said president, chief executive officer David Zaslav.

Lamar Advertising Company (LAMR) declined 4.9% or $3.54 to $69.10 after the digital billboards maker said net revenues in the fourth-quarter ending in December rose 3% from a year ago to $398.5 million.

Net income in the quarter jumped 8.2% to $87.2 million or 88 cents per diluted share from $80.5 million or 81 cents in the same quarter last year.

The advertisement services provider forecasted diluted earnings per share between $2.96 and $3.11.

Macy''s Inc (M) jumped 4.2% or $1.16 to $28.56 after the department stores operator reported sales in the fourth-quarter ending in December rose 1.8% from a year ago to $8.7 billion.

Comparable sales in the quarter increased 1.3% and 1.4% on an owned plus licensed basis.

Net income in the quarter soared to $1.3 billion or $4.31 per diluted share from $475 million or $1.54 in the same quarter last year.

Macy''s estimated comparable sales on both an owned and an owned plus licensed basis to be flat to increase 1% and total sales to fall between 0.5% and 2%.

Toll Brothers Inc (TOL) fell 44 cents to $47.12 after the luxury residential homes maker said revenues in the first-quarter ending in December soared 28.2% from a year ago to $1.2 billion.

Net income in the quarter surged 87.6% to $132.1 million or 83 cents per diluted share from $70.4 million or 42 cents in the same quarter last year.

The homebuilder said backlog value in the first-quarter jumped 28% to $5.58 billion and units totaled soared 21% to 6,250 homes and net signed contract value surged 36% to $1.69 billion and contract units advanced 20% to 1,822 homes.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc