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Market Update

Mattress Firm Acquires Sleep Train, Ciena Plunges on Sales Outlook


Author: Mukesh Buch
ticker.com
Last Update: 12:39 PM ET September 04 2014

12:35 PM New York – Ciena net swung to profit on 12% revenue increase. Joy Global net tumbled 61% and sales plunged 34%. Mattress Firm net rose and agreed to acquire private rival Sleep Train chain for $425 million. PVH net swung to profit. UTi Worldwide soared despite loss widened.

Tollbooth Index increased 0.5% or 53.24 to 9,566.

Earnings Review

Argan, Inc (AGX) slipped 1.2% or 49 cents to $39.98 after the engineering construction company said revenues in second-quarter ending in July climbed 76.2% to $102 million from a year ago period.

Net income in the quarter declined 31.7% to $8.6 million or 58 cents a diluted share compared to $12.6 million or 89 cents from a same quarter last year.

Ciena Corporation (CIEN) plunged 8.8% or $1.79 to $18.67 after the communications networking equipment maker reported revenues in third-quarter ending in July jumped 12.1% to $603.6 million from a year ago period.

Net in the quarter swung to profit $16.2 million or 15 cents a diluted share compared to a loss of $1.2 million or 1 cent from a same quarter last year.

Ciena forecasted revenue for the fourth-quarter in the range of $570 to $610 million, lower than analysts’ expectations of at least $620 million.

Joy Global Inc (JOY) slid 24 cents to $61.96 after the mining equipment maker stated net sales in the third-quarter ending on August 1 plunged 34% to $876 million from a year ago period.

Net income in the quarter tumbled 61% to $71.3 million or 71 cents a diluted share compared to $183.2 million or $1.71 from a same quarter last year.

Mattress Firm Holding Corp (MFRM) jumped 11.9% or $6.74 to $63.55 after the specialty retailer reported net sales in second-quarter ending in July climbed 35.5% to $410 million from a year ago period. Comparable store sales growth of 9.7%

Net income in the quarter rose 3.5% to $14.3 million compared to $14.1 million and diluted earnings per share was flat at 41 cents from a same quarter last year.

Separately, today the company agreed to acquire private rival Sleep Train chain, a West Coast bedding specialty retailer for $425 million in cash and stock. The combined company plans to continue to operate both brands.

Methode Electronics Inc (MEI) surged 16.1% or $5.52 to $39.78 after the electronic component maker said total net sales in the first-quarter ending on August 2 surged 30.4% to $218.1 million from a year ago period.

Net income in the quarter soared 57.4% to $21.4 million or 55 cents a diluted share compared to $13.6 million or 36 cents from a same quarter last year.

The company lifted sales guidance for the year between $870 million and $885 million and income from operations in the range of $108 million to $114 million and earnings per share between $2.10 and $2.20.

PVH Corp (PVH) advanced 10.3% or $12.02 to $129.15 after the apparel and accessories retailer reported revenue in the second-quarter ending on August 3 jumped 4% to $1.89 billion from a year ago period.

Net in the quarter swung to a profit $126.5 million or $1.52 a diluted share compared to a loss of $5.4 million or 7 cents from a same quarter last year.

Shiloh Industries, Inc (SHLO) climbed 8.6% or $1.42 to $18.01 after the automotive parts maker stated total revenues in third-quarter ending in July soared 30% to $216.4 million from a year ago period.

Net income in the quarter jumped 58% to $8.3 million or 49 cents a diluted share compared to $5.3 million or 31 cents from a same quarter last year.

UTi Worldwide Inc (UTIW) soared 14.3% or $1.30 to $10.37 after the logistics and distribution company reported revenues in second-quarter ending in July dropped 3.4% to $1.09 billion from a year ago period.

Net loss in the quarter widened to $16.9 million or 19 cents a diluted share compared to $4.4 million or 4 cents from a 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