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Market Update

Lowe's Net Surges 31%; Target Plunges on Revenue Decline


Author: Mukesh Buch
ticker.com
Last Update: 9:22 PM ET May 18 2016

12:00 PM New York Analog Devices net plunged 17% and revenues fell 5%. Booz Allen profit surged 51%. Lowe''s net surged 31%. Staples lowered sales outlook and said net declined 18%. Target profit fell on 5% fall in revenues.

Tollbooth Index edged up 0.82 to 10,363.91.

Earnings Review

Analog Devices, Inc (ADI) rose 18 cents to $55.55 after the integrated circuits maker said revenues in the second-quarter ending in April declined 5.1% from a year ago to $778.8 million.

Net income in the quarter plunged 17% to $170.6 million or 55 cents per diluted share compared to $205.3 million or 65 cents per share from the same quarter last year.

The chip maker estimated revenues in the third-quarter in the range of $800 million to $840 million and diluted earnings per share between 60 cents and 68 cents.


Booz Allen Hamilton Holding Corporation (BAH) jumped 3.8% or $1.05 to $28.53 after the management consulting company reported total revenues in the fourth-quarter ending in March advanced 6.1% from a year ago to $1.02 billion.

Net income in the quarter surged 50.9% to $65.5 million or 43 cents per diluted share compared to $43.4 million or 29 cents per share from the same quarter last year.

In the year, the company forecasted revenues to increase between 2% and 5% and diluted earnings per share in the range of $1.60 to $1.70.

Hormel Foods Corp (HRL) plummeted 7.7% or $2.99 to $35.81 after the meat products maker stated revenues in the second-quarter ending in April rose 1% from a year ago to $2.30 billion.

Net income in the quarter soared 20% to $215.4 million or 40 cents per diluted share compared to $180.2 million or 33 cents per share from the same quarter last year.

The company lifted fiscal 2016 diluted earnings per share forecast in the range of $1.56 to $1.60 from the earlier estimated range between $1.50 and $1.56.

Lowe''s Companies, Inc (LOW) advanced 3.6% or $2.75 to $78.82 after the home improvement retailer reported revenues in the first-quarter ending on April 29 soared 7.8% from a year ago to $15.23 billion.

Comparable store sales in the quarter jumped 7.3% and comparable sales in the U.S. home improvement business increased 7.5%.

Net income in the quarter surged 31.4% to $884 million or 98 cents per diluted share compared to $673 million or 70 cents per share from the same quarter last year.

Lowe''s forecasted total sales in the full-year to increase about 6%, including the 53rd week. The additional one week in the year is estimated to increase total sales by 1.5%.

Comparable sales are expected to jump 4% and diluted earnings per share are estimated at about $4.11.

Staples, Inc (SPLS) added 1 cent to $8.28 after the specialty retailers said total sales in the first-quarter ending in April slipped 3.1% from a year ago to $5.10 billion.

Net income in the quarter declined 18% to $41 million or 6 cents per diluted share compared to $59 million or 9 cents per share from the same quarter last year.

In the second-quarter, Staples forecasted sales to drop from the same period a year ago and non-GAAP diluted earnings per share between 11 cents and 13 cents.

The retailer estimated approx $600 million of free cash flow in the year 2016, excluding the impact of payments associated with proposed acquisition of Office Depot and costs associated with the termination of merger agreement.

Target Corporation (TGT) plunged 8.8% or $6.44 to $67.17 after the discount stores operator reported revenues in the first-quarter ending in April slumped 5.4% from a year ago to $16.20 billion.

Comparable store sales in the quarter rose 1.2% while Comparable digital channel sales surged 23% and comparable sales in signature categories (Style, Baby, Kids and Wellness) grew more than three times.

Net income in the quarter slid 0.4% to $632 million or $1.05 per diluted share compared to $635 million or 98 cents per share from the same quarter last year.

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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