Expedia Sells eLong Stake; Intuit Lifts Forecast, HP Sales Fall 7%

Mukesh Buch
22 May, 2015
New York City

Expedia sells its 62.4% stake in China-based eLong for $671 million. Aeropostale net loss narrowed. Brocade net swung to profit. Campbell Soup net slid. Deere net tumbled 30%. Foot Locker profit soared 14%. Gap net declined 8%. HP net plunged 23%. Intuit lifted outlook.

[R]11:35 AM New York – Expedia sells its 62.4% stake in China-based eLong for $671 million. Aeropostale net loss narrowed. Brocade net swung to profit. Campbell Soup net slid. Deere net tumbled 30%. Foot Locker profit soared 14%. Gap net declined 8%. HP net plunged 23%. Intuit lifted outlook.[/R]

Tollbooth Index gained 0.3% or 29.16 to 10,862.

Earnings Review

ANN Inc ((ANN)) slid 3 cents to $47 after the women’s apparel and accessories retailer said net sales in the first-quarter ending on May 2 increased 1.2% to $597.7 million from a year ago period.

Comparable store sales in the quarter decreased 1.5% and Taylor total brand comparable sales declined 3%.

Net income in the quarter soared 161.5% to $13.6 million or 29 cents per diluted share compared to $5.2 million or 11 cents from the same quarter last year.

The retailer forecasted total net sales in the second-quarter of about $660 million and for the year total net sales of about $2.56 billion.

Aeropostale Inc ((ARO)) tumbled 16.8% or 43 cents to $2.15 after the mall-based retailer stated sales in the first-quarter ending on May 2 plunged 20% to $318.6 million from a year ago period.

Comparable store sales in the quarter declined 11%.

Net loss in the quarter narrowed to $45.3 million or 57 cents per diluted share compared to $76.8 million or 98 cents from the same quarter last year.

For the second quarter, the teen-apparel retailer forecasted diluted loss per share between 60 cents and 52 cents.

Brocade Communications Systems, Inc ((BRCD)) gained 1.1% or 14 cents to $12.15 after the network equipment supplier said total revenues in the second-quarter ending on May 2 gained 1.8% to $546.6 million from a year ago period.

Net in the quarter swung to profit $77 million or 18 cents per diluted share compared to a loss of $13.7 million or 3 cents from the same quarter last year.

Campbell Soup Company ((CPB)) jumped 2.3% or $1.07 to $48 after the canned and frozen food products maker reported revenues in the third-quarter ending on May 3 dropped 4% to $1.90 billion from a year ago period.

Net income in the quarter slid 0.5% to $182 million or 58 cents per diluted share compared to $183 million or 58 cents from the same quarter last year.

Deere & Company ((DE)) climbed 4% or $3.58 to $93.04 after the agriculture and turf equipment maker said total revenues in the second-quarter ending in April plunged 18% to $8.2 billion from a year ago period.

Net income in the quarter tumbled 30% to $690.5 million or $2.03 per diluted share compared to $980.7 million or $2.65 from the same quarter last year.

The company equipment sales for the year to decline about 19% and about 17% for the third-quarter compared to a year ago periods.

For fiscal 2015, net income estimated to be about $1.9 billion.

The company forecasted industry sales of turf and utility equipment for the year in the U.S. and Canada are expected to be flat or increase of 5%.

Expedia Inc ((EXPE)) jumped 4.4% or $4.13 to $110.03 after the online travel company agreed to sell its stake of 62.4% in China-based travel group eLong, Inc to China-based Ctrip.com International, Ltd and others at an average price of $14.63 per share or for about $671 million.

The transaction is scheduled to close today.

Foot Locker, Inc ((FL)) rose 1.1% or 71 cents to $64.71 after the athletic shoes and apparel retailer said total revenues in the first-quarter ending on May 2 jumped 2.6% to $1.9 billion from a year ago period.

Comparable store sales in the quarter climbed 7.8%.

Net income in the quarter soared 13.6% to $184 million or $1.29 per diluted share compared to $162 million or $1.10 from the same quarter last year.

The Gap, Inc ((GPS)) slipped 1.4% or 54 cents to $38.02 after the apparel retail reported total revenues in the first-quarter ending on May 2 dropped 3% to $3.7 billion from a year ago period.

Comparable store sales in the quarter dropped 4% while comparable online sales jumped 5.3%.

Net income in the quarter declined 8.1% to $239 million or 56 cents per diluted share compared to $260 million or 58 cents from the same quarter last year.

For the year, the retailer forecasted earnings per share in the range of 2.75 to $2.80.

Hewlett-Packard Company ((HPQ)) soared 4.3% or $1.45 to $35.27 after the computer peripheral maker said net revenues in the second-quarter ending in April declined 7% to $25.5 billion from a year ago period.

Net income in the quarter plunged 23.1% to $1 billion or 55 cents per diluted share compared to $1.3 billion or 66 cents from the same quarter last year.

HP said revenues in personal systems in the quarter dropped 5% to $7.7 billion and revenue from printing segment slumped 7% to $5.5 billion.

The company added revenue in company''s enterprise group slipped 1% to $6.6 billion and enterprise services revenue plummeted 16% to $4.8 billion. Revenues in software business dropped 8% to $892 million and financial services revenue slipped 7% to $805 million.

Intuit Inc ((INTU)) climbed 4.1% or $4.32 to $108.49 after the accounting software maker said total revenues in the third-quarter ending in April plunged 8.3% to $2.2 billion from a year ago period.

Net income in the quarter tumbled 49.1% to $501 million or $1.78 per diluted share compared to $984 million or $3.39 from the same quarter last year.

Intuit lifted revenues forecast for the year between $4.40 billion to $4.42 billion and adjusted earnings per share in the range of $2.50 to $2.52 compared to earlier estimated revenues range of $4.28 billion to $4.38 billion and adjusted earnings per share between $2.45 and $2.50.