U.S. Movers: Best Buy, Deere, Donaldson, News Corp, Salesforce.com

Mukesh Buch
21 Nov, 2012
New York City

Best Buy third quarter net swung to loss as revenue declined. Deere & Co fourth quarter increased 3% and lifted outlook. Donaldson first quarter net declined 21% and Heinz second quarter net climbed 13%. News Corp agreed to acquire 49% stake in YES Network.

[R]9:55 AM New York – Best Buy third quarter net swung to loss as revenue declined. Deere & Co fourth quarter increased 3% and lifted outlook. Donaldson first quarter net declined 21% and Heinz second quarter net climbed 13%. News Corp agreed to acquire a 49% stake in YES Network.[/R]

Best Buy Co., Inc. ((BBY)) slipped 2.1% or 26 cents to $11.71 after the consumer goods retailer said net sales in the third quarter ending on November 3 slipped 4% to $10.75 billion from $11.15 billion in the same period of last year. Comparable store sales for the quarter dropped 4.3%.

Net loss in the quarter swung to $10 million or 3 cents a diluted share compared to net income of $156 million or 42 cents a share a year ago earlier.

Best Buy said revenue from domestic segment dropped 4.7% to $7.7 billion and gross profit declined 9% to $1.9 billion and international segment revenue was nearly flat to $3.1 billion and gross profit slumped 11% to $731 million.

Deere & Company ((DE)) dropped 3.7% or $3.30 to $82.74 after the agricultural and turf equipments maker reported sales in the fourth quarter ending in October climbed 14% to $9.79 billion from $8.61 billion in the same period of last year. Net income in the quarter increased 3% to $687.6 million or $1.75 a diluted share compared to $669.6 million or $1.62 a share a year ago.

Worldwide net sales for the quarter climbed 14% to $9.79 billion and net sales of the equipment operations jumped 15% to $9.05 billion from a year ago.

For the fiscal 2013, the company lifted equipment sales outlook and expects to increase 5% and for the fiscal first quarter to climb 10%. For the fiscal 2013, net income to be about $3.2 billion.

Donaldson Company, Inc. ((DCI)) slid 14 cents to $33.70 after the filtration system maker stated net sales in the first quarter ending in October slid 3% to $588.9 million from $608.3 million in the same period of last year. Net earnings in the quarter declined 21% to $54.1 million or 36 cents a diluted share compared to $68.6 million or 45 cents a share a year ago period.

Donaldson expects full year sales to grow to between $2.5 and $2.6 billion and earnings per share in the range of $1.68 to $1.88.

Eaton Vance Corp. ((EV)) decreased 13 cents to $31.52 after the investment service provider said net sales in the fourth quarter ending in October grew 4% to $309.9 million from $297.3 million in the same period of last year. Net income in the quarter climbed 13% to $53.1 million or 45 cents a diluted share compared to $46.8 million or 40 cents a share a year ago earlier.

H. J. Heinz Company ((HNZ)) gained 17 cents to $57.60 after the food products maker reported sales in the second quarter ending on October 28 edged up to $2.83 billion from $2.81 billion in the same period of last year. Net income in the quarter climbed 13% to $289.4 million or 90 cents a diluted share compared to $237 million or 73 cents a share a year ago earlier.

For the full year, Heinz expects organic sales growth of 4% and earnings per share from continuing operations to increase between 5% and 8%.

News Corporation ((NWS)) slid 10 cents to $24.36 after the media company agreed to acquire a 49% stake in Yankees Entertainment and Sports Network. The media rights agreement is subject to approval of major league baseball. The investment is expected to close by the end of the year.

Patterson Companies, Inc. ((PDCO)) gained 1 cent to $33 after the medical equipments supplier reported sales in the second quarter ending on October 27 grew 1% to $867.2 million from $856.9 million in the same period of last year. Net income in the quarter climbed 13% to $45.5 million or 44 cents a diluted share compared to $48.9 million or 43 cents a share a year ago earlier.

Salesforce.com, Inc. ((CRM)) climbed 5.5% or $8.06 to $153.96 after the cloud computing service provider reported sales in the third quarter ending in October soared 35% to $788.4 million from $584.3 billion in the same period of last year. Net loss in the quarter widened to $220.3 million or $1.55 a diluted share compared to $3.8 million or 3 cents a share a year ago.

The company added subscription and support revenues jumped 35% to $741 million and revenues from professional services and other were surged 36% to $48 million.

For the fiscal 2013, Salesforce expects revenue to increase of 34% in the range of $3.04 billion to $3.05 billion and GAAP net loss per share is expected between $2.02 and $2.