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Market Update

FedEx Lifts Outlook; Oracle Misses Sales Estimates, AutoZone Net Falls


Author: Mukesh Buch
ticker.com
Last Update: 1:05 PM EDT September 18 2018

12:40 PM New York City, New York AutoZone net declined on weak revenues. Cracker Barrel net and sales jumped. FedEx missed earnings estimates but the delivery company lifted outlook. Oracle net jumped 6% on weak revenues.

Tollbooth Index advanced 49.44 or 0.3% to 16,428.89 but for the year-to-date soared 19.4%.

Earnings Review

AutoZone Inc (AZO) dropped 2.6% or $19.54 to $727.98 after the automobile parts and accessories retailer reported net sales in the fourth-quarter ending on August 25 increased 1.3% from a year ago to $3.6 billion.

Domestic same store sales in the quarter increased 2.2%.

Net income in the quarter declined 7.7% to $400.3 million or $15.02 per diluted share from $433.9 million or $15.27 in the same quarter last year.

In a conference call, the retailer announced a new next day home delivery program for up to 100,000 different parts and accessories.

Apogee Enterprises, Inc (APOG) plunged 11.2% or $5.41 to $42.81 after the glass and metal products developer said net sales in the second-quarter ending on September 1 jumped 5% from a year ago to $362.1 million.

Net income in the quarter soared 18% to $20.5 million or 72 cents per diluted share from $17.4 million or 60 cents in the same quarter last year.

Apogee lowered fiscal 2019 revenues growth forecast to between 8% and 10% from the earlier estimate of 10% and diluted earnings per share between $3 and $3.20 from the earlier estimate of $3.35 to $3.55.

BorgWarner Inc (BWA) slumped 4.3% or $1.91 to $42.24 after the auto-parts supplier forecasted fiscal 2018 net sales between $10.49 billion and $10.58 billion and diluted earnings per share in the range of $4.35 to $4.40.

The auto parts maker issued softer outlook on the weak industry volumes primarily in China, with additional short-term challenges in Europe.

The auto-parts supplier reaffirmed fiscal 2023 revenue of about $14 billion and said operating margin is estimated to to improve to less than 13%.

Cracker Barrel Old Country Store, Inc (CBRL) declined 4.7% or $7.06 to $143.69 after the restaurants operator said total revenues in the fourth-quarter ending on August 3 soared 9.1% from a year ago to $810.9 million.

Comparable restaurant sales in the quarter fell 0.4% and comparable store retail sales increased 1.3%.

Net income in the quarter jumped 14% to $61.4 million or $2.55 per diluted share from $53.9 million or $2.23 in the same quarter last year.

The restaurants operator forecasted fiscal 2019 total revenues of about $3.04 billion, comparable restaurant sales growth in the range of flat to 1%.

The restaurant chain said comparable store retail sales growth is estimated in the range of flat to 1% and diluted earnings per share in the range of $8.95 and $9.10.

FedEx Corporation (FDX) declined 4.6% or $11.73 to $244.01 after the package delivery services provider reported revenues in the first-quarter ending in August surged 11.8% from a year ago to $17.1 billion.

Net income in the quarter soared 40% to $835 million or $3.10 per diluted share from $933 million or $3.46 in the same quarter last year.

FedEx forecasted fiscal 2019 revenues growth of 9% and operating margin of 7.9% and lifted diluted earnings per share forecast to between $15.85 and $16.45 from the earlier estimate of $15.65 to $16.25.

General Mills Inc (GIS) plummeted 7.6% or $3.65 to $44.12 after the branded consumer foods, ready-to-eat cereals and convenient meals maker said revenues in the first-quarter ending on August 26 advanced 9% from a year ago to $4.1 billion.

Net income in the quarter dropped 3.1% to $392.3 million or 65 cents per diluted share from $404.7 million or 69 cents in the same quarter last year.

General Mills reaffirmed fiscal 2019 net sales forecast in the range of flat and 1% growth and diluted earnings per share between flat and 3% decline from $3.11 in the same period a year ago.

Oracle Corporation (ORCL) slipped 1.1% or 53 cents to $48.66 after the enterprise software provider reported revenues in the first-quarter ending in August rose 1% from a year ago to $9.2 billion.

Net income in the quarter jumped 6% to $2.3 billion or 57 cents per diluted share from $2.1 billion or 50 cents in the same quarter last year.

Oracle said revenues in the cloud services and license support plus cloud license and on-premise license revenues grew 2% to $7.5 billion.

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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