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Market Update

U.S. Movers: Adobe, ConAgra, IHS, Jefferies, Rite Aid, Scholastic


Author: Mukesh Buch
ticker.com
Last Update: 11:08 AM ET September 20 2012

10:45 AM New York ConAgra jumped on quarterly results and lifted fiscal outlook. CarMax quarterly net was nearly flat. IHS cuts fiscal guidance. Rite Aid loss narrowed and lowered fiscal outlook. Scholastic loss widened.

Adobe Systems Inc (ADBE) gained 33 cents to $33.45 after the publishing software developer reported net revenues in the third quarter ending in August edged up to $1.08 billion from $1.01 billion in the same period of last year. Net income in the quarter gained 3% to $201.4 million or 40 cents per diluted share compared to $195.1 million or 39 cents per share a year ago quarter.

For the fourth quarter, Adobe expects revenue of $1.08 billion to $1.13 billion and diluted earnings per share basis, the company is targeting a range of 34 cents to 39 cents.

Bed Bath & Beyond Inc. (BBBY) declined 8.4% or $5.83 to $62.90 after the chain of retail stores reported revenues in the second quarter ending on August 25 jumped 12% to $2.59 billion from $2.31 billion in the same period of last year. Same store sales in the quarter increased 3.5%.

Net earnings in the quarter advanced 5% to $224.3 million or 98 cents per diluted share compared to $229.4 million or 93 cents per share a year ago period.

The company expects net earnings per diluted share for the fiscal third quarter between 99 cents and $1.04 and for all of fiscal 2012 increase by high single to a low double digit percentage range.

ConAgra Foods, Inc. (CAG) climbed 6.3% or $1.64 to $27.29 after the food company reported total sales in the first quarter ending on August 26 grew 7% to $3.31 billion from $3.10 billion in the same period of last year. Net income in the quarter jumped 167% to $250.1 million or 61 cents per diluted share compared to $93.8 million or 22 cents per share a year ago earlier.

Total operating profit soared 27.6% to $374.9 million.

The company issued senior unsecured notes in face value of $750 million in three parts each of $250 million and the coupon rates for 3 years are 1.35%, 5.5 years at 2.10%, and 10 years at 3.25%.

With a strong starts from the first quarter, ConAgra now expects full year diluted earnings per share to be in the range of $2.03 to $2.06.

CarMax, Inc. (KMX) dropped 5.1% or $1.63 to $30.34 after the used car retailer reported revenues in the second quarter ending in August increased 7% to $2.76 billion from $2.59 billion in the same period of last year. Comparable store sales in the quarter increased 5%.

Net earnings in the quarter were nearly flat at $111.6 million or 48 cents per diluted share compared to $111.2 million or 48 cents per share a year ago.

The retailer said wholesale vehicle unit sales declined 2% and total of used unit sales in the second quarter climbed 8%. Income from auto finance increased 19% to $75.7 million and total gross profit increased to $368.0 million from prior year quarter.

CarMax plan to open ten superstores in fiscal 2013, double from last year openings.

IHS Inc. (IHS) plummeted 15.1% or $17.15 to $97.77 after the oil well service provider reported revenues in the third quarter ending in August climbed 14% to $385.6 million from $338.7 million in the same period of last year. Net income in the quarter increased 8% to $44.1 million or 66 cents per diluted share compared to $40.8 million or 62 cents per share a year ago earlier.

IHS is revised revenue in a range of $1.52 billion to $1.535 billion and adjusted earnings per share between $3.77 and $3.89.

Jefferies Group, Inc. (JEF) slumped 6.2% or 98 cents to $14.68 after the investment company reported net revenues in the third quarter ending in August advanced 45% to $739 million from $509 million in the same period of last year. Net income in the quarter gained 3% to $70.2 million or 31 cents per diluted share compared to $68.3 million or 30 cents per share a year ago quarter.

Advisory net revenues soared 24% to $133 million and fixed income net revenues surged eight-fold to $266 million.

Rite Aid Corporation (RAD) slipped 3% or 4 cents to $1.27 after the drugstore chain reported revenues in the second quarter ending on September 1 slid 0.6% to $6.2 billion from $6.3 billion in the same period of last year. Same store sales in the quarter were flat.

Net loss in the quarter narrowed to $38.8 million or 5 cents per diluted share compared to $92.3 million or 11 cents per share a year ago period.

The company added decrease in revenue was driven by the fall in pharmacy same-store sales. Prescriptions filled in same stores grew 4% due to benefited from Walgreens/Express Scripts dispute.

Prescription sales surged 67.5% of total drugstore sales and third party prescription revenue climbed 96.5% of pharmacy sales.

The drugstore chain expects sales for the year in the range of $25.1 billion to $25.4 billion and same store sales to range from a decrease of 1% to an increase of 0.25% and net loss between $69 million and $196 million or a loss per diluted share of 9 cents to 23 cents.

Scholastic Corporation (SCHL), the educational books publisher reported total sales in the first quarter ending in August slipped 7% to $293.6 million from $318 million in the same period of last year. Net loss in the quarter widened to $32.1 million or $1.02 per diluted share compared to $27.1 million or 87 cents per share a year ago earlier.

Scholastic affirmed for fiscal outlook for total revenue of nearly $1.9 billion to $2 billion and earnings per diluted share from continuing operations in the range of $2.20 to $2.40.

The Marcus Corporation (MCS) declined 5.2% or 64 cents to $11.47 after the theatres, hotels and resorts operator reported total sales in the first quarter ending in August dropped 5% to $117.9 million from $123.9 million in the same period of last year. Net earnings in the quarter declined 14% to $10.7 million or 37 cents per diluted share compared to $12.5 million or 42 cents per share a year ago period.

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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