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Market Update

Target Net Surges, Staples Net Tumbles; Seagate Declines


Author: Mukesh Buch
ticker.com
Last Update: 12:55 PM ET August 19 2015

12:55 PM New York American Eagle net jumped 4% and sales soared. Analog Devices net increased 5%. Eaton Vance revenues and profit fell. Lowe''s revenues and net jumped 4%. Staples profit tumbled 56%. Seagate agreed to acquire Dot Hill. Target profit surged.

Tollbooth Index decreased 100.91 or 0.9% to 10,820.38.

Earnings Review

American Eagle Outfitters (AEO) plunged 7.9% or $1.44 to $16.81 after the apparel and accessories retailer reported net revenues in the second-quarter ending on August 1 soared 12% to $797 million from a year ago period.

Same store sales in the quarter surged 11%.

Net income in the quarter jumped 4.2% to $33.3 million or 17 cents per diluted share compared to $5.8 million or 3 cents from the same quarter last year.

For the third quarter, the retailer forecasted diluted earnings per share in the range of 28 cents to 31 cents.

Analog Devices, Inc (ADI) rose 53 cents to $58.43 after the electronic equipment maker stated revenues in the third-quarter ending on August 1 surged 19% to $863 million from a year ago period.

Net income in the quarter increased 5.4% to $216.5 million or 68 cents per diluted share compared to $205.3 million or 65 cents from the same quarter last year.

Eaton Vance Corp (EV) dropped 2.6% or $1.01 to $37.91 after the investment advisor said revenues in the second-quarter ending in July fell 3.3% to $355.5 million from a year ago period.

Net income in the quarter slid 2.4% to $68.7 million or 57 cents per diluted share compared to $70.4 million or 58 cents from the same quarter last year.

Hormel Foods Corp (HRL) slid 3 cents to $60.53 after the meat and food products maker stated net sales in the third-quarter ending on July 26 dropped 4.2% to $2.19 billion from a year ago period.

Same store sales in the quarter rose 1.2%.

Net income in the quarter jumped 6.4% to $146.9 million or 54 cents per diluted share compared to $138 million or 51 cents from the same quarter last year.

Hormel Foods lifted non-GAAP earnings per share forecast for the year between $2.57 and $2.63 from the previous guidance in the range of $2.50 to $2.60.

Lowe''s Companies, Inc (LOW) rose 13 cents to $73.13 after the home improvement retailer reported net sales in the second-quarter ending in July jumped 4.5% to $17.4 billion from a year ago period.

Comparable store sales in the quarter increased 4.3% comparable sales for U.S. home improvement business gained 4.6%.

Net income in the quarter soared 8.4% to $1.13 billion or $1.20 per diluted share compared to $1.04 billion or $1.04 from the same quarter last year.

Lowe''s estimated annual total sales to increase 4.5% to 5% and comparable sales to increase between 4% and 4.5% and diluted earnings per share of about $3.29.

Staples, Inc (SPLS) slipped 1.8% or 25 cents to $13.91 after the speciality retailer stated net sales in the second-quarter ending on August 1 declined 5.4% to $4.9 billion from a year ago period.

Same store sales in the quarter rose 1.2%.

Net income in the quarter tumbled 56.1% to $36 million or 6 cents per diluted share compared to $82 million or 13 cents from the same quarter last year.

Seagate Technology Plc (STX) dropped 3.3% or $1.69 to $50.36 after the Ireland-based hard drives maker agreed to acquire Dot Hill Systems for $9.75 a share or about $694 million in cash.

The transaction is expected to close in the fourth-quarter of this year.

Target Corporation (TGT) increased 48 cents to $80.78 after the second largest discount retail store network operator reported net sales in the second-quarter ending on August 1 advanced 2.8% to $17.43 billion from a year ago period.

Same store sales in the quarter increased 2.4%.

Net income in the quarter surged 222% to $753 million or $1.18 per diluted share compared to $234 million or 37 cents from the same quarter last year.

For the third-quarter, Target forecasted earnings per share in the range of 79 cents to 89 cents from 79 cents reported in the same period a year ago.

For the year, the retailer lifted estimated earnings per share between $4.60 and $4.75 compared to earlier estimated range of $4.50 to $4.65.

Separately, Target agreed to reimburse up to $67 million to settle Visa claims in connection to massive data breach of 40 million debit and credit cards during the holiday shopping season in 2013.

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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