U.S. Movers: Bed Bath, ConAgra, Nike, Red Hat, Rite Aid, Walgreen

Mukesh Buch
21 Dec, 2012
New York City

Bed Bath third quarter net slipped 2% and ConAgra second quarter net surged 17%. Nike second quarter net declined 18% to $384 million. Rite Aid third quarter net swung to profit and Walgreen first quarter net declined 25%.

[R]10:50 AM New York – Bed Bath third quarter net slipped 2% and ConAgra second quarter net surged 17%. Nike second quarter net declined 18% to $384 million. Rite Aid third quarter net swung to profit and Walgreen first quarter net declined 25%.[/R]

Bed Bath & Beyond Inc. ((BBBY)) slipped 55 cents to $55.83 after the specialty retailer reported sales in the third quarter ending on November 24 jumped 15% to $2.70 billion from $2.34 billion in the same period of last year. Total comparable stores sales in the quarter increased 1.7%.

Net earnings in the quarter slipped 2% to $232.8 million or $1.03 diluted per share compared to $228.5 million or 95 cents a share a year ago.

ConAgra Foods, Inc. ((CAG)) slid 18 cents to $29.98 after the packaged food company reported total sales in the second quarter ending on November 25 jumped 9% to $3.74 billion from $3.43 billion in the same period of last year. Net earnings in the quarter surged 17% to $211.6 million or 51 cents diluted per share compared to $180.2 million or 43 cents a share a year ago.

Sales at consumer foods segment surged 63% and commercial foods segment sales soared 37%.

The company expects fiscal 2013 adjusted diluted earnings per share to be nearly $2.06 from previous expectations of $2.03 to $2.06.

CarMax, Inc. ((KMX)) decreased 22 cents to $37.73 after the used vehicle retailer said total sales in the third quarter ending in November climbed 15% to $2.60 billion from $2.26 billion in the same period of last year. Used unit sales in comparable stores gained 12%.

Net earnings in the quarter jumped 15% to $94.7 million or 41 cents diluted per share compared to $82.1 million or 36 cents a share a year ago earlier.

The retailer said total unit sales soared 16% and total wholesale unit sales advanced 10% and total gross profit increased 14% to $345.2 million.

Cintas Corporation ((CTAS)) slumped 3% or $1.32 to $41.58 after the uniforms provider reported total sales in the second quarter ending in November grew 4% to $1.06 billion from $1.02 billion in the same period of last year. Net earnings in the quarter advanced 5% to $78 million or 63 cents diluted per share compared to $74.4 million or 57 cents a share a year ago period.

For fiscal 2013, the uniforms provider expects revenue in the range of $4.28 billion to $4.33 billion and anticipated no change in earnings per share guidance between $2.50 and $2.58.

Discover Financial Services ((DFS)) gained 33 cents to $38.74 after the banking and payment service provider stated net sales in the fourth quarter ending in October climbed 6% to $1.71 billion from $1.62 billion in the same period of last year. Net income in the quarter increased 5% to $541 million or $1.07 diluted per share compared to $508 million or 95 cents a share a year ago.

The bank added card sales volume grew 6% to $26.5 billion and credit card loans ended the quarter grew 6% to $49.6 billion from the prior year period. Total loans ended the quarter increased 6% to $61 billion and personal loans loan climbed 24% to $624 million.

Nike, Inc. ((NKE)) jumped 4.5% or $4.59 to $103.58 after the footwear and apparel maker reported total sales in the second quarter ending in November increased 7% to $5.96 billion from $5.55 billion in the same period of last year. Net earnings in the quarter declined 18% to $384 million or $1.14 diluted per share compared to $469 million or $1.03 a share a year ago earlier.

Nike took a one-time charge of $137 million linked with the sale of Cole Haan and Umbro.

Rite Aid Corporationis ((RAD)) increased 1.6% or 2 cents to $1.23 after the drugstore chain reported sales in the third quarter ending on December 1 down 1% to $6.24 billion from $6.31 billion in the same period of last year. Total sales in comparable stores in the quarter decreased 1.5%.

Net income in the quarter swung to $61.9 million or 7 cents diluted per share compared to net loss of $52 million or 6 cents a share a year ago.

The drug chain said prescriptions filled in same stores increased 3.6% and prescription sales surged for 67.8% of total drugstore sales and third party prescription revenue soared 96.5% of pharmacy sales.

Red Hat, Inc. ((RHT)) gained 4.8% or 2.52 to $55.13 after the open source software provider said total sales in the third quarter ending in November climbed 18% to $343.6 million from $290 million in the same period of last year. Net income in the quarter dropped 9% to $34.8 million or 18 cents diluted per share compared to $38.2 million or 19 cents a share a year ago earlier.

Red Hat said subscription revenue jumped 19% to $294.2 million and operating income slipped 7% to $49.9 million, this mainly due to acquisition-related costs.

Tibco Software Inc. ((TIBX)) climbed 3.6% or 77 cents to $21.50 after the financial services software provider reported net sales in the fourth quarter ending in November grew 2% to $296.5 million from $289.5 million in the same period of last year. Net income in the quarter slipped 6% to $48.8 million or 29 cents diluted per share compared to $51.9 million or 30 cents a share a year ago period.

Walgreen Co. ((WAG)) dropped 2.1% or 83 cents to $36.72 after the drugstore chain reported sales in the first quarter ending in November dropped 5% to $17.3 billion from $18.2 billion in the same period of last year. Total sales in comparable stores in the quarter decreased 8%.

Net earnings in the quarter declined 25% to $413 million or 43 cents diluted per share compared to $554 million or 63 cents a share a year ago.

Walgreen added front-end comparable store sales fell 2% and customer traffic in comparable stores slipped 4.2% but basket size increased 2.2%. Prescription sales fell 7.2% and prescription sales in comparable stores decreased 11.3%.