U.S. Movers: American Eagle, Chico

Mukesh Buch
22 Aug, 2012
New York City

American Eagle gained after the teen retailer offer higher third quarter guidance and Analog Devices profit declined 23%. Chico

[R]11:20 AM New York – American Eagle gained after the teen retailer offer higher third quarter guidance and Analog Devices profit declined 23%. Chico’s net jumped 23%. Dell declined on weak sales and outlook. Express net jumped 25.4% and Toll Brothers net income soared 46.3%.[/R]

American Eagle Outfitters, Inc ((AEO)) gained 4.8% or $1.01 to $21.84 after the specialty retailer reported net sales in the second quarter ending on July 28 increased 11% to $739.7 million compared to $669.1 million in the same period of last year. For the quarter, comparable store sales increased 9% and online sales increased 28%.

Net income in the quarter slid 2.6% to $19 million or 9 cents per diluted share compared to $19.7 million or 10 cents per share a year ago earlier.

The retailer completed sale of its children’s business 77kids which includes 22 stores and the online business on August 3.

For the third quarter, the retailer expects earnings per share from continuing operations in the range of 37 cents to 38 cents and for the year between $1.33 and $1.36. Comparable store sales growth is expected to be in mid single-digits in the third quarter and for the fourth quarter in low single-digits.

Analog Devices, Inc. ((ADI)) slipped 1.1% or 46 cents to $39.88 after the electronic chip maker reported revenue in the third quarter ending on August 4 slipped 10% to $683.03 million compared to $757.90 million in the same period of last year. Net income in the quarter declined 22.8% to $169.8 million or 56 cents per diluted share compared to $219.9 million or 71 cents per share a year ago.

The chip maker said revenues in the industrial and automotive segments dropped 12% respectively and consumer segment slumped 19% and in communication group decreased 11% from a year ago period.

On higher opening backlog and stable order, Analog expects fourth quarter revenues in the range of $685 million to $715 million and earnings per share to be 54 cents to 60 cents and gross margin of approximately 65%.

Chico’s FAS, Inc. ((CHS)) climbed 7.8% or $1.34 to $18.42 after the specialty retailer reported net sales in the second quarter ending on July 28 climbed 16.4% to $641.7 million compared to $551.4 million in the same period of last year.

For the quarter, comparable store sales increased 5.6% and Chico''s/soma intimate’s brand comparable sales increased 7.2%.

Net income in the quarter jumped 23% to $53.4 million or 32 cents per diluted share compared to $43.4 million or 25 cents per share a year ago period. For the second quarter, gross margin increase 17.1% to $362.2 million.

The retailer revised higher net sales for fiscal 2012 to between $2.55 billion and $2.6 billion and comparable store growth at a mid-single digit percent and flat gross margin.

Dell Inc. ((DELL)) declined 6.7% or 83 cents to $11.51 after the computer maker reported revenues in the second quarter ending on August 3 declined 8% to $14.5 billion compared to $15.7 billion in the same period of last year. Net income in the quarter dropped 18% to $732 million or 42 cents per diluted share compared to $890 million or 48 cents per share a year ago period.

Dell enterprise solutions and services segment revenue grew 6% to $4.9 billion from a year ago which represents more than a third of its revenue.

During the second quarter, consumer segment revenue declined 22% to $2.6 billion and revenue from large enterprises slid 3% to $4.5 billion and public sector revenue slipped 6% to $4.1 billion.

The pc maker expects third quarter revenue to be down between 2% and 5% from second quarter and revised its full year earnings outlook to at least $1.70 per share on a non -GAAP basis.

Express, Inc. ((EXPR)) slumped 8.4% or $1.42 to $15.48 after the specialty apparel retailer reported net sales in the second quarter ending in July edged up 2% to $454.9 million compared to $446 million in the same period of last year. For the quarter, comparable store sales grew 1%.

Net income in the quarter jumped 25.4% to $15.8 million or 18 cents per diluted share compared to $12.6 million or 14 cents per share a year ago earlier.

The company expects third quarter comparable sales to be flat to up in low-single-digits and for the full year comparable sales to increase in low single digits.

For third quarter, net income is expected in the range of $23 million to $28 million or 27 cents to 32 cents per diluted share and for the fourth quarter net income is estimated in the range of $67 million to $71 million or 77 cents to 82 cents per diluted share and for the year earnings per share in the range between $1.69 and $1.79.

Intuit Inc. ((INTU)) slid 1.2% or 71 cents to $58.24 after the personal finance software developer reported revenue in the fourth quarter ending in July surged 14% to $651 million compared to $573 million in the same period of last year. Net income in the quarter swung to $4 million or 1 cent per diluted share compared to net loss of $57 million or 19 cents per share a year ago period.

Toll Brothers, Inc. ((TOL)) gained 4.4% or $1.41 to $33.22 after the construction company reported net sales in the third quarter ending in July surged 40.6% to $554.3 million compared to $394.3 million in the same period of last year. Net earnings in the quarter soared 46.3% to $61.6 million or 36 cents per diluted share compared to $42.1 million or 25 cents per share a year ago period.

Toll Brothers said at the end of third quarter backlog was $1.62 billion and 2,559 units, an increase of 59% in dollars and 44% in units. The company expects total home sale revenue for fiscal 2012 between $1.71 billion and $1.84 billion.

Williams-Sonoma, Inc. ((WSM)) jumped 10.3% or $3.97 to $42.20 after the home furniture retailer reported net revenues in the second quarter ending on July 29 grew 7.3% to $874.3 million compared to $814.8 million in the same period of last year. For the quarter, comparable store sales increased 7.4%.

Net income in the quarter increased 5% to $43.4 million or 43 cents per diluted share compared to $39.3 million or 37 cents per share a year ago earlier.

Direct-to-customer net revenues increased 12.6% to $414 million and retail net revenues increased 3% to $460 million.

The company expects third quarter revenue to increase between $905 million and $925 million, a growth between 4% and 7%. For the year, revenues are expected in the range of $3.98 billion to $4.03 billion. Earnings per share in the third quarter are expected to increase to between 43 cents and 46 cents and for the year to a range of $2.40 to $2.47.