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Market Update

Valeant Tumbles After Quarterly Losses, Ralph Lauren to Restructure


Author: Mukesh Buch
ticker.com
Last Update: 4:08 PM ET June 07 2016

2:00 PM New York HD Supply and Valeant Pharma net swung to a loss. Hooker Furniture net declined 29% but revenues more than doubled. Michaels profit and revenues jumped. Navistar lowered fiscal outlook. Verizon plans a second bid for internet business of Yahoo.

Tollbooth Index increased 42.37 or 0.4% to 10,750.74.

Earnings Review

HD Supply Holdings Inc (HDS) rose 9 cents to $35.01 after the industrial distributor net sales in the first-quarter ending on May 1 soared 7% from a year ago to $1.78 billion.

Net in the quarter swung to a loss of $10 million or 7 cents per diluted share compared to profit of $247 million or $1.21 per share from the same quarter last year.

The company anticipated net sales in the second-quarter in the range of $2 billion to $2.05 billion and operating profit between $270 million and $280 million and diluted earnings per share in the range of 85 cents to 90 cents.

Hooker Furniture Corporation (HOFT) plunged 8.4% or $2.08 to $22.62 after the home furnishings company stated net sales in the first-quarter ending on May 1 more than doubled from a year ago to $121.8 million.

Net income in the quarter declined 28.6% to $2.5 million or 22 cents per diluted share compared to $3.5 million or 32 cents per share from the same quarter last year.

Michaels Companies Inc (MIK) plummeted 9.4% or $2.83 to $27.32 after the home decoration retailer reported total net sales in the first-quarter ending in April advanced 7.5% from a year ago to $1.16 billion.

Comparable store sales in the quarter increased 0.9%.

Net income in the quarter jumped 6% to $70.8 million or 34 cents per diluted share compared to $66.7 million or 32 cents per share from the same quarter last year.

The company estimated comparable store sales in the second-quarter to increase between 0.4% and 1.4% while comparable store sales in the fiscal year to soar in the range of 2.2% to 2.7%.

Navistar International Corp (NAV) surged 26.6% or $3.24 to $15.40 after the heavy machinery and trucks maker said revenues in the second-quarter ending in April slumped 18% from a year ago to $2.2 billion.

Net in the quarter swung to profit $4 million or 5 cents per diluted share compared to a loss of $64 million or 78 cents per share from the same quarter last year.

Navistar lowered retail deliveries in fiscal year of Class 6-8 trucks and buses in the United States and Canada to 330,000 units and 360,000 units.

The company also lowered annual revenue forecast in year in the range of $8.2 billion to $8.6 billion and operating profit between $550 million and $600 million.

Ralph Lauren Corp (RL) slipped 85 cents to $95.49 after the lifestyle products designer chief executive officer and President Stefan Larsson is expected to outline multi-year restructuring plan that will save hundreds of millions of dollars on investor day for analysts.

The retailer also plans to reduce merchandise sold to department stores and close some of its own retail locations.

Valeant Pharmaceuticals Intl Inc (VRX) tumbled 13.1% or $3.77 to $25.08 after the Canada-based pharmaceutical and medical device maker reported revenues in the first-quarter ending in March jumped 9% from a year ago to $2.4 billion.

Net in the quarter swung to a loss of $373.7 million or $1.08 per diluted share compared to profit of $97.7 million or 28 cents per share from the same quarter last year.

The company lowered annual revenues forecast to between $9.9 billion and $10.1 billion from earlier estimated range of $11 billion to $11.2 billion and non-GAAP diluted earnings per share in the range of $6.60 to $7.

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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