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Earnings Analysis: 
Home Depot Lifts Outlook on Net Growth
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:38 AM EST November 15 2005



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Home Depot Inc. home-improvement retailer, posted a Q3 net income of 72 cents a share, up from 60 cents in the same period a year ago, beating analyst estimate of 68 cents a share.

 
Home Depot’s, (HD: chart), sales increased 10.5%, as comparable-store sales rose 3.6%. Operating margin grew to 11.9%, as the company''s average ticket rose to $58.92. Home Depot also revised higher projected growth range for full-year sales to 10% to 12%, up from 9% to 12% previously, and raised its growth target for earnings per share to 17% to 18% from a range of 14% to 17%.

ArvinMeritor Inc, (ARM: chart), manufacturer of components for commercial vehicles posted Q4 loss of 27 cents a share, up from a loss of $2.23 a share in the year-earlier period. Earnings from continuing operations dropped to 17 cents a share from 44 cents a share in the comparable period last year. If not for items, operating income amounted to 41 cents a share, missing analyst estimate by a penny. Sales increased 6%

Vodafone Group, (VOD: chart), British mobile operator, lowered its interim dividend by 15% to 2.20 pence a share as it posted first-half net profit down 23.5% to 4.36 pence a share on an impairment charge of 500 million pounds. Sales for the period rose 9% to, beatinganalysts'' expectations, as Vodafone added 10 million new subscribers, bringing its total customer base to 171 million. The group announced it envisages fiscal-year sales between the 6% to 9% range previously indicated.

BJ''s Wholesale Club Inc., (BJ: chart), retailer, posted Q3 net income of 41 cents a share, up 20% from 33 cents a share in the year-earlier period on 9.3% revenue growth and 4.1%. same-store sales rise. Q3 adjusted net income was 38 cents a share, topping analysts’ forecasts of 36 cents a share.

Staples Inc., (SPLS: chart), office products retailer, reported Q3 net income of 32 cents a share, up from 28 cents in the same period last year, matching the analysts’ forecasts. Sales increased 11%, above the analyst estimate. Same-store sales jumped 3%, while North American retail sales increased 9%.

J.C. Penny Co., (JCP: chart), department store operator, posted Q3 earnings from continuing operations of 94 cents a share, up from 50 cents a share, earned in the year-ago period on an improved operating performance, lower interest expense, and the positive impact of its ongoing buyback program, beating analyst estimate of 92 cents a share. Sales rose 2% in Q3 while same-store sales advanced 2.5%.

American Eagle Outfitters Inc, (AEOS: chart), specialty apparel retailer, reported that Q3 net income advanced to 47 cents a share, from 38 cents in the year-ago period, beating analyst estimate by a penny. Q3 sales advanced to $577.7 million from $479.6 million in the comparable period. Same-store sales, rose 14%.

Dick''s Sporting Goods Inc, (DKS: chart), retailer, reported Q3 net income of 8 cents a share up from a loss of 4 cents a share. If not for merger integration and store closing costs, the company would have gained 8 cents a share, beating analysts’ forecasts by a penny. Q3 sales rose 8%. Same-store sales increased 2.9% over year-ago levels.

Prestige Brands Holdings, Inc, (PBH: chart), reported Q2 of fiscal 2006 net income of 15 cents a share, down from a net income of 23 cents a share a year ago. The company added it''s revising financial reports for the years 2003 through 2005 and has deferred its quarterly filing with the U.S. Securities and Exchange Commission.
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