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Market Update

Housing Boom Lifts Home Depot Sales, TJX Offers Cautious Holiday Views


Author: Mukesh Buch
ticker.com
Last Update: 6:43 PM ET November 15 2016

2:10 PM New York Dicks Sporting lifted earnings forecast. Estee Lauder agreed to acquire Too Faced, the feminine makeup brand for $1.45 billion. Home Depot net soared 18% and reaffirmed sales forecast. Reynolds American rejected $47 billion takeover offer from BAT.

Tollbooth Index advanced 106.32 or 1.6% to 10,848.54.

Earnings Review

Dicks Sporting Goods Inc (DKS) plunged 6.9% or $4.09 to $56.80 after the sporting goods retailer said net sales in the third-quarter ending on October 29 soared 10.2% from a year ago to $1.8 billion.

Same store sales across all brands in the quarter advanced 5.2%. Same store sales in Dick''s Sporting Goods surged 5.5% while Golf Galaxy decreased 3.3%.

Net income in the quarter jumped 3.6% to $48.9 million or 44 cents per diluted share compared to the $47.2 million or 41 cents per share from the same quarter last year.

The sporting goods retailer lifted annual diluted earnings per share forecast for the year in the range of $2.91 to 3.03 and same store sales to increase approx 3% to 4% compared to the decrease of 0.2% in fiscal 2015.

Estee Lauder Companies Inc (EL) increased 1.5% or $1.19 to $78.79 after the skin care, fragrance and hair care products maker agreed to acquire Too Faced, the makeup brand for about $1.45 billion.

The transaction is expected to close in December.

Home Depot Inc (HD) slumped 1.8% or $2.31 to $125.41 after the home improvement retailer reported sales in the third-quarter ending on October 30 rose 6.1% from a year ago to $23.2 billion.

Comparable store sales in the quarter advanced 5.5% and sales in the U.S. based stores jumped 5.9%.

Net income in the quarter soared 17.6% to $2 billion or $1.60 per diluted share compared to the $1.7 billion or $1.60 per share from the same quarter last year.

The retailer reaffirmed sales forecasted in fiscal 2016 to jump 6.3% and comparable sales to increase 4.9% and also lifted diluted earnings per share estimate to grow approx 15.9% from fiscal 2015 to $6.33.

Reynolds American, Inc (RAI) rose 26 cents to $53.31 after the cigarettes and tobacco products maker rejected $47 billion takeover offer from the U.K.-based British American Tobacco.

British American Tobacco controlled 42% of Reynolds American and in October offered to buy the remaining stake of 58% that it doesn''t already own with premium of 20%.

Teva Pharmaceutical Industries Ltd (TEVA) declined 4.9% or $2.02 to $38.98 after Israel-based generic drugs maker stated revenues in the third-quarter ending in September jumped 15% from a year ago to $5.6 billion.

Net income in the quarter surged three-fold to $412 million or 35 cents per diluted share compared to the $103 million or 12 cents per share from the same quarter last year.

Teva Pharma forecasted revenues in the year between $21.6 billion and $21.9 billion and in the fourth-quarter in the range of $6.2 billion and $6.5 billion.

The TJX Companies Inc (TJX) dropped 1.3% or 97 cents to $73.25 after the off-price apparel and home fashions retailer reported sales in the third-quarter ending on October 29 advanced 7% from a year ago to $8.3 billion.

Comparable store sales in the quarter jumped 5% and in the U.S. stores jumped 5.9%.

Net income in the quarter declined 6.4% to $549.8 million or 83 cents per diluted share compared to the $587.3 million or 86 cents per share from the same quarter last year.

TJX lowered diluted earnings per share forecast in the fourth-quarter in the range of 96 cents to 98 cents from 99 cents reported in a year ago period.

In the year, the off-price retailer estimate diluted earnings per share between $3.39 and $3.41 compared to the prior guidance of $3.39 to $3.43.

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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