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Market Update

Darden Lifts Growth Outlook; Thor Ind Net Plunges, Red Hat Drops


Author: Mukesh Buch
ticker.com
Last Update: 12:04 PM EDT September 20 2018

12:05 PM New York City, New York Darden Restaurants net jumped and lifted fiscal outlook. Herman Miller beat earnings estimates. Red Hat net plunged 10% but revenues surged. Thor Industries tumbled on weaker-than-expected results.

Tollbooth Index dropped 41.44 or 0.3% to 16,511.21 but for the year-to-date soared 19.9%.

Earnings Review

Darden Restaurants, Inc (DRI) fell 40 cents to $117.49 after the specialty restaurant operator reported revenues in the first-quarter ending on August 26 jumped 6.5% from a year ago to $2.1 billion.

Same restaurant sales in the quarter advanced 3.3%

Net income in the quarter surged 39.7% to $166.2 million or $1.34 per diluted share from $119 million or 93 cents in the same quarter last year.

Darden lifted fiscal 2019 total sales growth forecast to between 5% and 5.5% from the earlier estimate of 4% to 5% and diluted earnings per share in the range of $5.52 to $5.65 from the earlier estimate of $5.40 to $5.56

Same restaurant sales growth are now projected to be in a range of 2% to 2.5% from the earlier estimate of 1% to 2%.

Herman Miller Inc (MLHR) soared 5.1% or $1.90 to $39.15 after the office equipment and home furniture provider said revenues in the first-quarter ending on September 1 advanced 7.6% from a year ago to $624.6 million.

Same restaurant sales in the quarter advanced 3.3%

Net income in the quarter jumped 8.2% to $35.8 million or 60 cents per diluted share from $33.1 million or 55 cents in the same quarter last year.

The office equipment provider said new orders in the quarter jumped 6% to $630.6 million and backlog increased 4.3% to $346.4 million from a year ago period.

Herman Miller forecasted fiscal second-quarter revenues in the range of $635 million to $655 million and diluted earnings per share between 70 cents and 74 cents.

Red Hat Inc (RHT) declined 5.8% or $8.31 to $134.85 after the open-source software provider reported revenues in the second-quarter ending in August soared 14% from a year ago to $823 million.

Net income in the quarter plunged 10.3% to $87 million or 46 cents per diluted share from $97 million or 53 cents in the same quarter last year.

Red Hat forecasted fiscal 2019 revenues in the range of $3.36 billion to $3.40 billion and operating margin of about 16.4% and diluted earnings per share between $3.45 and $3.49.

Thor Industries Inc (THO) tumbled 13.6% or $14.35 to $91.29 after the recreational vehicles maker said net sales in the fourth-quarter ending in July dropped 3.1% from a year ago to $1.9 billion.

Net income in the quarter tumbled 26.2% to $88.2 million or $1.67 per diluted share from $119.5 million or $2.26 in the same quarter last year.

The recreational vehicles maker said revenues in the Towable segment were flat and revenues in the motorized segment plunged 13.2% and gross profit margin declined to 13% from 15.6% in 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