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Market Update

Lululemon Tumbles on Weak Outlook;VF, Worthington Decline


Author: Mukesh Buch
ticker.com
Last Update: 6:09 PM ET March 30 2017

2:10 PM New York – Dell Technologies said net loss widened but revenues soared. Lindsay net swung to profit. Lululemon tumbled on disappointed sales forecast. SAIC net soared 28%. VF plans for the five-year period through 2021. Worthington Ind net jumped 21%.

Tollbooth Index rose 12.32 to 11,641.48.

Earnings Review

AngioDynamics, Inc (ANGO) jumped 3.4% or 59 cents to $17.88 after the medical, surgical and diagnostic devices maker said net sales in the third-quarter ending in February fell 2% from a year ago to $85.6 million.

Net income in the quarter surged to $2.9 million or 8 cents per diluted share from $0.6 million or 2 cents in the same quarter last year.

The medical devices maker lowered revenue forecast in fiscal 2017 to between $352 million to $355 million from the earlier estimated range of $355 million to $360 million. The device maker also lifted diluted earnings per share in the range of 68 cents to 70 cents from 65 cents to 67 cents.

Dell Technologies Inc, formerly Denali Holding Inc (DVMT) gained 1.4% or 90 cents to $64.76 after the information technology provider reported revenues in the fourth-quarter ending on February 3 soared 58% from a year ago to $20.01 billion.

Net loss in the quarter widened to $236 million or 64 cents per diluted share from $28 million in the same quarter last year.

J.Jill Inc (JILL) advanced 2.7% or 35 cents to $13.46 after the women’s specialty retailer stated total net sales in the in the fourth-quarter ending on January 28 soared 14.8% from a year ago to $166.9 million.

Total comparable store sales and direct to consumer comparable sales jumped 10.8%.

Net income in the quarter plunged 54.3% to $2 million or 5 cents per diluted share from $1.4 million or 3 cents in the same quarter last year.

Lindsay Corporation (LNN) jumped 5.1% or $4.15 to $85.54 after the water and road infrastructure services provider said revenues in the second-quarter ending in February rose 2.9% from a year ago to $124.1 million.

Net in the quarter swung to profit $5 million or 47 cents per diluted share from a loss of $4.1 million or 37 cents in the same quarter last year.

The irrigation systems and infrastructure products provider said net income in the prior year included $13 million of environmental remediation expenses, on an after-tax basis, reduced net earnings by $8.5 million or 78 cents per diluted share.

Lululemon Athletica Inc (LULU) tumbled 22.7% or $15.06 to $51.26 after the athletic apparel retailer reported revenues in the fourth-quarter ending on January 29 jumped 12% from a year ago to $789.9 million.

Comparable store sales increased 6% and total comparable sales including direct to consumer comparable sales soared 8%.

Net income in the quarter surged 15.9% to $136.1 million or 99 cents per diluted share from $117.4 million or 85 cents in the same quarter last year.

In the fiscal first-quarter, the retailer forecasted net revenue in the range of $510 million to $515 million and total comparable sales to decrease in the low-single digits and diluted earnings per share in the range of 25 cents to 27 cents.

In fiscal 2017, Lululemon estimated net revenue between $2.55 billion to $2.60 billion and total comparable sales to increase in the low-single digits and diluted earnings per share in the range of $2.26 to $2.36.

Science Applications International Corp (SAIC) tumbled 10.3% or $8.92 to $77.33 after the engineering information technology services provider said revenues in the fourth-quarter ending on February 3 dropped 4% from a year ago to $1.03 billion.

Net income in the quarter soared 28% to $36 million or 79 cents per diluted share from $28 million or 74 cents in the same quarter last year.

SAIC’s estimated backlog of signed business orders at the end of fiscal 2017 was approx $8 billion of which $1.8 billion was funded.

VF Corp (VF) slumped 3.7% or $2.10 to $54.10 after the apparel, footwear and related products maker said in the five-year period through 2021 it plans to return $8 billion to shareholders.

The lifestyle apparel maker estimated revenue in the five-year period to increase at compounded annual rate between 4% and 6% and earnings per share to grow between 10% and 12% and margins to reach 51.5% by 2021.

The board has approved a new $5 billion share buyback authorization.

The branded products maker intends to generate more than $9 billion of cash and also plans to change fiscal year end to March 31 from the December 31.

Worthington Industries, Inc (WOR) plunged 9.9% or $5 to $45.63 after the metals processing services provider reported revenues in the third-quarter ending in February surged 9% from a year ago to $703.4 million.

Net income in the quarter jumped 20.5% to $35.9 million or 55 cents per diluted share from $29.8 million or 47 cents in 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