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Market Update

GE Divests Finance Portfolio for $12 B; H&R, HD Supply, Lululemon Soar


Author: Mukesh Buch
ticker.com
Last Update: 1:16 PM ET June 09 2015

1:05 PM New York GE agreed to sell its U.S. sponsor finance business and bank loan portfolio to Canada Pension Plan Investment Board for $12 billion. Burlington Stores net surged 118%. Casey''s General Stores net climbed 98%. H & R Block net fell. Lululemon net more than doubled.

Tollbooth Index slid 0.2% or 22.50 to 10,614.40.

Earnings Review

Burlington Stores Inc (BURL) declined 9.4% or $5.09 to $48.80 after the branded apparel retailer net sales in the first-quarter ending on May 2 jumped 4.9% to $1.18 billion from a year ago period.

Comparable store sales in the quarter increased 0.8%.

Net income in the quarter surged 117.8% to $25.7 million or 41 cents per diluted share compared to $11.8 million or 25 cents from the same quarter last year.

The retailer forecasted net sales for the year to climb in the range of 6% to 7% and comparable store sales to increase between 2% to 3%.

Casey''s General Stores Inc (CASY) climbed 5.6% or $4.85 to $92.11 after the supermarkets and convenience stores operator reported revenues in the fourth-quarter ending in April plunged 14.1% to $1.65 billion from a year ago period.

Same store sales in the quarter climbed 9.7% and in prepared food and fountain business jumped 13.5%.

Net income in the quarter climbed 97.6% to $41.3 million or $1.05 per diluted share compared to $20.9 million or 54 cents from the same quarter last year.

Dave & Buster''s Entertainment, Inc (PLAY) gained 1.2% or 39 cents to $33.56 after the entertainment services provider said total revenues in the first-quarter ending on May 3soared 14.3% to $222.7 million from a year ago period.

Comparable store sales in the quarter jumped 9.9%.

Net income in the quarter jumped 69.5% to $19.5 million or 45 cents per diluted share compared to $11.5 million or 34 cents from the same quarter last year.

The company lifted revenues forecast for the year between $822 million to $831 million compared to earlier estimated range of $808 million to $822 million and net income in the range of $43.5 million to $46 million from previous guidance between $36.7 million to $40.4 million.

General Electric Company (GE) rose 3 cents to $27.27 after the diversified company agreed to divest its U.S. sponsor finance business including GE Antares Capital, GE Capital''s lending business and $3 billion bank loan portfolio to Canada Pension Plan Investment Board for about $12 billion.

The transaction is expected to close in the third-quarter.

H & R Block Inc (HRB) jumped 4.6% or $1.43 to $32.68 after the tax preparation and banking services provider reported total revenues in the fourth-quarter ending in April rose 2% to $3.08 billion from a year ago period.

Net income in the quarter fell 0.3% to $473.7 million or $1.71 per diluted share compared to $475.2 million or $1.72 from the same quarter last year.

HD Supply Holdings Inc (HDS) soared 6.1% or $1.97 to $34.42 after the industrial products trader and distributor said net sales in the first-quarter ending on May 3 climbed 6.2% to $2.22 billion from a year ago period.

Net in the quarter swung to profit $242 million or $1.21 per diluted share compared to a loss of $12 million or 6 cents from the same quarter last year.

Lululemon Athletica Inc (LULU) soared 8.8% or $5.39 to $66.87 after the athletic apparel retailer reported net revenue in the first-quarter ending on May 3 climbed 10% to $423.5 million from a year ago period.

Comparable store sales for the first quarter decreased 1%.

Net income in the quarter surged 151.6% to $47.8 million or 34 cents per diluted share compared to $18.9 million or 13 cents from the same quarter last year.

For the second-quarter, the company forecasted net revenue in the range of $440 million to $445 million and diluted earnings per share between 31 cents and 33 cents.

Lululemon forecasted revenues for the year between $2 billion and $2.05 billion and diluted earnings per share in the range of $1.86 to $1.91.

United Natural Foods, Inc (UNFI) dropped 3.3% or $2.08 to $61.58 after the food and non-food products retailer stated net sales in the third-quarter ending on May 2 soared 18.7% to $2.11 billion from a year ago period.

Net income in the quarter climbed 14.8% to $41.8 million or 83 cents per diluted share compared to $36.4 million or 73 cents from the same quarter last year.

For the year, the company lowered revenues forecast in the range of $8.15 to $8.19 billion from the earlier estimated range of $8.19 billion to $8.29 billion and earnings per share between $2.75 and $2.79 from the previous guidance in the range of $2.90 to $2.99 per share.

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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