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Market Update

HP, salesforce, Steiner Leisure Soar; Deere, Foot Locker, Intuit Fall


Author: Mukesh Buch
ticker.com
Last Update: 12:49 PM ET August 21 2015

12:00 PM New York – Deere net plummeted 40% on 20% fall in revenues. Foot Locker net surged 29%. GAP net tumbled 34%. Hibbett Sports profit plunged 17% and the retailer lowered fiscal outlook. In its last result before split, HP said net and revenues declined. Intuit net swung to profit. Salesforce net loss narrowed.

Tollbooth Index declined 228.73 or 2.2% to 10,431.40.

Earnings Review

Deere & Company (DE) plunged 6.9% or $6.28 to $84.37 after the agriculture and turf equipment maker reported net sales in the third-quarter ending in July tumbled 20% to $7.59 billion from a year ago period.

Net income in the quarter plummeted 40% to $511.6 million or $1.53 per diluted share compared to $850.7 million or $2.33 from the same quarter last year.

For the year, Deere forecasted net income of about $1.8 billion.

Foot Locker, Inc (FL) slipped 1.6% or $1.14 to $70.58 after the shoes and apparel retailer said net sales in the second-quarter ending on August 1 jumped 3.7% to $1.70 billion from a year ago period.

Comparable store sales in the quarter soared 9.6%.

Net income in the quarter surged 29% to $119 million or 84 cents per diluted share compared to $92 million or 63 cents from the same quarter last year.

The GAP, Inc (GPS) fell 30 cents to $33.36 after the apparel retailer reported net sales in the second-quarter ending on August 1 slid 2% to $3.90 billion from a year ago period.

Same store sales in the quarter decreased 2%.

Net income in the quarter tumbled 34% to $219 million or 52 cents per diluted share compared to $332 million or 75 cents from the same quarter last year.

The retailer forecasted earnings per share for the third-quarter between $2.75 and $2.80.

Hibbett Sports, Inc (HIBB) decreased 1.2% or 47 cents to $38.60 after the sporting goods retailer said net sales in the second-quarter ending on August 1 increased 2.8% to $199.3 million from a year ago period.

Comparable store sales in the quarter fell 1%.

Net income in the quarter plunged 16.7% to $7 million or 28 cents per diluted share compared to $8.4 million or 32 cents from the same quarter last year.

The company lowered diluted earnings per share estimate for the year between $2.80 and $2.90 compared to earlier estimated range of $2.95 to $3.04.

Hewlett-Packard Company (HPQ) soared 5.4% or $1.47 to $28.83 after the computer peripherals provider reported revenues in the third-quarter ending in July declined 8% to $25.3 billion from a year ago period.

Net income in the quarter declined 10% to $900 million or 47 cents per diluted share compared to $1 billion or 52 cents from the same quarter last year.

HP said revenues in personal systems in the quarter plunged 13% to $7.5 billion and notebook unit sales dropped 3% while desktop unit sales tumbled 20%. Printing division revenue declined 9% to $5.1 billion from a year earlier

Revenues in enterprise division increased 2% to $7 billion but enterprise services revenue plummeted 11% to $5 billion. Software revenue in the quarter slump 6% to $900 million.

HP lowered diluted earnings per share forecast for the year between $1.87 and $1.93 compared to earlier estimated range between $2.03 and $2.23.

Today’s financial report is the last report from HP before it splits itself into two new independently traded companies from November 1, Hewlett Packard Enterprise and HP Inc, a PC and printer company.

Intuit Inc (INTU) plunged 11.1% or $11.37 to $91.56 after the accounting software maker reported revenues in the fourth-quarter ending in July jumped 7% to $696 million from a year ago period.

Net in the quarter swung to profit $14 million or 5 cents per diluted share compared to a loss of $29 million or 10 cents from the same quarter last year.

Intuit forecasted revenues for the year in the range of $4.53 billion to $4.60 billion and earnings per share between $2.50 and $2.55.

For the first-quarter the company estimated revenues between $660 million to $680 million and net loss per share in the range of 26 cents to 27 cents.

salesforce.com, inc (CRM) increased 2.3% or $1.54 to $69.36 after the enterprise cloud computing solution provider said revenues in the second-quarter ending in July soared 23.5% to $1.63 billion from a year ago period.

Net loss in the quarter narrowed to $0.85 million or break even per diluted share compared to $61.1 million or 10 cents from the same quarter last year.

The company forecasted revenues for the third-quarter in the range of $1.69 billion to $1.70 billion and earnings per share between 18 cents and 19 cents.

For the year, salesforce lifted revenues estimate between $6.60 billion and $6.63 billion from earlier forecasted range of $6.52 billion to $6.55 billion and earnings per share between 70 cents and 72 cents compared to previous guidance in the range of 69 cents to 71 cents.

Steiner Leisure Ltd (STNR) surged 14.1% or $7.98 to $64.51 after the beauty treatments and spa operator agreed to a leveraged buyout transaction with the private equity firm Catterton Partners for about $843 million.

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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