Home Depot, TJX Net Jumps, Wal-Mart Profit Declines 15%

Mukesh Buch
18 Aug, 2015
New York City

BB&T agreed to acquire National Penn Bancshares for $1.8 billion. CVS completed the acquisition of Omnicare for $12.7 billion. Dicks Sporting net surged 31%. Home Depot profit rose 5% to $2.2 billion and lifted fiscal outlook. TJX net soared 7%. Wal-Mart net declined 15%.

[R]1:05 PM New York – BB&T agreed to acquire National Penn Bancshares for $1.8 billion. CVS completed the acquisition of Omnicare for $12.7 billion. Dicks Sporting net surged 31%. Home Depot profit rose 5% to $2.2 billion and lifted fiscal outlook. TJX net soared 7%. Wal-Mart net declined 15%.[/R]

Tollbooth Index edged down 2.09 to 10,923.81.

Earnings Review

BB&T Corporation ((BBT)) slid 36 cents to $39.83 after the financial services provider agreed to acquire National Penn Bancshares, Inc for about $1.8 billion.

The transaction is expected to close in mid-2016.

CVS Health Corp ((CVS)) fell 59 cents to $108.15 after the healthcare services provider completed the acquisition of Omnicare for $98 per share in cash, valued at about $12.7 billion, including $2.3 billion in debt.

Dicks Sporting Goods Inc ((DKS)) gained 1.3% or 98 cents to $51.68 after the sporting goods retailer said net sales in the second-quarter ending on August 1 advanced 7.9% to $1.8 billion from a year ago period.

Same store sales in the quarter rose 1.2%.

Net income in the quarter surged 30.6% to $90.8 million or 77 cents per diluted share compared to $69.5 million or 57 cents from the same quarter last year.

Home Depot Inc ((HD)) jumped 2.2% or $2.58 to $122.34 after the home improvement retailer reported net sales in the second-quarter ending on August 2 increased 4.5% to $24.83 billion from a year ago period.

Comparable store sales in the quarter jumped 4.2% comparable sales for U.S. stores soared 5.7%.

Net income in the quarter rose 4.8% to $2.2 billion or $1.73 per diluted share compared to $2.1 billion or $1.52 from the same quarter last year.

The company lifted earnings per share forecast for the year to increase in a range of 13% to 14% to $5.31 to $5.36 from fiscal 2014.

TJX Companies Inc ((TJX)) soared 5.9% or $4.23 to $75.84 after the off-price retailer reported total sales in the second-quarter ending on August 1 jumped 6% to $7.4 billion from a year ago period.

Comparable store sales in the quarter increased 6%.

Net income in the quarter soared 7% to $549.3 million or 80 cents per diluted share compared to $517.6 million or 73 cents from the same quarter last year.

For the third quarter, TJX diluted earnings per share in the range of 80 cents to 82 cents compared to 85 cents in a year ago period.

For the year, the retailer estimated diluted earnings per share to be in the range of $3.24 to $3.28 versus $3.15 in a year ago earlier.

Wal-Mart Stores, Inc ((WMT)) dropped 2.9% or $2.12 to $69.79 after the low price retailer reported total revenues in the second-quarter ending in July edged up 0.1% to $120.23 billion from a year ago period.

Comparable store sales in the quarter rose 1.5%.

Net income in the quarter declined 15.1% to $3.48 billion or $1.08 cents per diluted share compared to $4.09 billion or $1.26 from the same quarter last year.

Wal-Mart U.S. saw net sales jumped 4.8% to $73.96 billion while Sam''s Club net sales slipped 0.9% to $14.73 billion and comparable store sales increasing 1.3%. Net sales in the international segment declined 9.6% to $30.64 billion.

The retailer forecasted earnings per share for the third-quarter in the range of 93 cents to $1.05 per share.

For the year, Wal-Mart lowered its earnings per share estimate between $4.40 and $4.70 from earlier guidance between $4.70 and $5.05 per share.