U.S. Movers: Best Buy, DSW, Medtronic, Nordson, Tech Data

Mukesh Buch
21 Aug, 2012
New York City

Best Buy appointed the new chief and reduced fiscal earnings outlook. The shoe retailer DSW soared after it reiterated guidance. Medtronic first quarter worldwide revenue increased. Tech Data declined as second quarter sales drop in the US and Europe.

[R]10:55 AM New York – Best Buy appointed the new chief and reduced fiscal earnings outlook. The shoe retailer DSW soared after it reiterated guidance. Medtronic first quarter worldwide revenue increased. Tech Data declined as second quarter sales drop in the US and Europe.[/R]

Best Buy Co., Inc. ((BBY)) slipped 3.9% or 66 cents to $17.52 after the electronic products retailer reported revenue in the second quarter ending on August 4 slid 3% to $10.55 billion compared to $10.86 billion in the same period of last year. For the quarter, comparable store sales decreased 3.2%.

Net income in the quarter plummeted 91% to $12 million or 4 cents per diluted share compared to $128 million or 34 cents per share a year ago earlier. Operating income in the quarter tumbled 87% to $33 million compared to $260 million in the same period of last year.

Domestic comparable store sales decline 1.6% from 3.7% in first quarter of a year ago. Online revenue advanced to 14% and mobile phones comparable store sales soared 35%.

Yesterday the company appointed Hubert Joly as chief executive officer and will start his appointment from beginning of next month.

The company reduced its annual earnings expectations for the second half and will not offer guidance for fiscal 2013.

DSW Inc. ((DSW)) climbed 5.5% or $3.37 to $64.60 after the specialty retailer reported sales in the second quarter ending on July 28 increased 7.5% to $512.2 million compared to $476.3 million in the same period of last year. For the quarter, comparable store sales increased 4.2%.

Net income in the quarter tumbled 79% to $29.3 million or 65 cents per diluted share compared to $139.9 million or $3.96 per share a year ago earlier.

The retailer reiterated earnings per share for the year in the range of $3.25 to $3.40 and comparable sales to increase mid-single digit.

Daktronics, Inc. ((DAKT)) jumped 18.8% or $1.46 to $9.52 after the electronic display supplier reported sales in the second quarter ending on July 28 soared 12% to $132.9 million compared to $118.7 million in the same period of last year.

Net income in the quarter jumped 98% to $6.68 million or 16 cents per diluted share compared to $3.37 million or 8 cents per share a year ago earlier.

Medtronic, Inc. ((MDT)) slid 13 cents to $41.32 after the medical equipments maker reported net sales in the first quarter ending on July 27 grew 5% to $4.01 billion compared to $3.95 billion in the same period of last year. Net earnings in the quarter climbed 5% to $864 million or 83 cents per diluted share compared to $821 million or 77 cents per share a year ago.

Medtronic said international revenue in the quarter increased 6% to $1.78 billion which contributed 44% of company’s worldwide revenues.

The company reiterated its fiscal 2013 diluted earnings per share guidance between $3.62 and $3.70 which implies growth of 5% to 7%.

Nordson Corporation ((NDSN)) soared 13% or $7.17 to $62.17 after the testing equipments maker reported net sales in the third quarter ending in July surged 22% to $380 million compared to $312 million in the same period of last year. Net income in the quarter soared 17.8% to $66.7 million or $1.03 per diluted share compared to $56.6 million or 82 cents per share a year ago.

Tech Data Corporation ((TECD)) dropped 4.1% or $2.14 to $50.01 after the computer peripherals distributor reported net sales in the second quarter ending in July declined 8% to $5.96 billion compared to $6.45 billion in the same period of last year. Net income in the quarter plunged 31% to $34.5 million or 88 cents per diluted share compared to $50.1 million or $1.10 per share a year ago period.

The distributor added net sales slipped 11% in the U.S. to $2.40 billion and decreased 5% in the Europe to $3.56 which contributed 40% and 60% respectively of its total worldwide net sales.

The company’s gross margin declined to 5.05% compared to 5.28% from a year ago period.

For the third quarter of fiscal year 2013, the company expects year-over-year sales growth of mid-single digits in euros in Europe, and a mid-single digit year-over-year sales decline in the Americas.

Urban Outfitters, Inc. ((URBN)) surged 16.1% or $5 to $36.28 after the specialty retail reported net sales in the second quarter ending in July advanced 11% to $676.3 million compared to $609.2 million in the same period of last year. For the quarter, comparable same store sales decreased 1% and direct-to-consumer net sales soared 22% and in wholesale segment, net sales increased 17% for the quarter.

Net income in the quarter climbed 8.1% to $61.3 million or 42 cents per diluted share compared to $56.7 million or 35 cents per share a year ago period.