Nordson, Toll Brothers Surge; Best Buy, DSW Fall

Mukesh Buch
24 May, 2016
New York City

AutoZone net and sales jumped. America''s Car-Mart net tumbled 53%. Best Buy profit surged 78% but the retailer lowered second-quarter outlook. DSW net plunged 37%. Kirkland''s net fell 64%. Nordson net declined 65% but revenues rose 9%. Toll Brothers net jumped 9%. Valspar net slid 11%.

[R]12:00 PM New York – AutoZone net and sales jumped. America''s Car-Mart net tumbled 53%. Best Buy profit surged 78% but the retailer lowered second-quarter outlook. DSW net plunged 37%. Kirkland''s net fell 64%. Nordson net declined 65% but revenues rose 9%. Toll Brothers net jumped 9%. Valspar net slid 11%.[/R]

Tollbooth Index soared 146.16 or 1.4% to 10,526.29.

Earnings Review

AutoZone, Inc ((AZO)) jumped 2.7% or $19.83 to $761.91 after the automotive replacement parts and accessories retailer reported net sales in the third-quarter ending on May 7 advanced 4% from a year ago to $2.6 billion.

Same-store sales in the quarter increased 2%.

Net income in the quarter soared 6% to $327.5 million or $10.77 per diluted share compared to $309.1 million or $9.57 per share from the same quarter last year.

America''s Car-Mart, Inc ((CRMT)) plunged 15.6% or $3.60 to $19.61 after the used car retailer stated revenues in the fourth-quarter ending in April soared 12.5% from a year ago to $154.7 million.

Net income in the quarter tumbled 52.8% to $3.4 million or 40 cents per diluted share compared to $7.2 million or 81 cents per share from the same quarter last year.

Best Buy Co Inc ((BBY)) plunged 8.9% or $2.92 to $30.08 after the electronic products retailer reported revenues in the first-quarter ending in April fell 1.4% from a year ago to $8.44 billion.

Comparable store sales in the quarter were flat.

Net income in the quarter surged 77.5% to $229 million or 70 cents per diluted share compared to $129 million or 36 cents per share from the same quarter last year.

In the quarter, the company decided to cease certain operations and restructure certain teams and recorded restructuring charges of $29 million related to asset impairments and severance and restructuring charges recorded of about $186 million primarily in connection to the Canadian brand consolidation.

Best Buy estimated revenues in the second-quarter to drop between 2.1% and 0.9% or in the range of $8.35 billion to $8.45 billion and international revenue to decline between 5% and 10%

The company lowered non-GAAP diluted earnings per share forecast in the second-quarter to between 38 cents and 42 cents from 49 cents in the same period of a year ago.

DSW Inc ((DSW)) plummeted 13.6% or $2.95 to $18.78 after the footwear retailer said sales in the first-quarter ending on May 2 rose 3.9% from a year ago to $681.3 million.

Comparable store sales in the quarter fell 1.6%.

Net income in the quarter plunged 36.7% to $30 million or 36 cents per diluted share compared to $47.4 million or 53 cents per share from the same quarter last year.

The retailer lowered full-year earnings per share forecast in the range of $1.32 to $1.42 from earlier estimated range of $1.54 to $1.64.

Kirkland''s, Inc ((KIRK)) dropped 5.7% or 75 cents to $12.47 after the home decor and gifts retailer stated net sales in the first-quarter ending in April soared 9.8% from a year ago to $129.9 million.

Comparable store sales in the quarter, including e-commerce sales rose 0.5%.

Net income in the quarter slumped 64% to $0.9 million or 6 cents per diluted share compared to $2.5 million or 14 cents per share from the same quarter last year.

Kirkland''s maintained fiscal 2016 forecast provided on March 11, for diluted earnings per share in the range of 98 cents to $1.11.

Nordson Corporation ((NDSN)) surged 12% or $9.14 to $85.32 after the industrial machinery maker reported sales in the second-quarter ending in April jumped 9% from a year ago to $438 million.

Net income in the quarter declined 65.4% to $6.2 million or 12 cents per diluted share compared to $17.9 million or 34 cents per share from the same quarter last year.

Nordson forecasted sales in the third-quarter to increase between 1% and 5% from a year ago period and GAAP diluted earnings per share in the range of $1.25 to $1.37.

Nordson President and Chief Executive Officer Michael F. Hilton said the company is on track to achieve “the goal of 200 basis points improvement to fiscal 2015 normalized operating margin by the end of fiscal 2017.”

Toll Brothers Inc ((TOL)) soared 6.5% or $1.77 to $28.88 after the luxury residential homes developer said revenues in the second-quarter ending in April surged 31% from a year ago to $2.04 billion.

Net income in the quarter jumped 8.6% to $162.2 million or 91 cents per diluted share compared to $149.3 million or 81 cents per share from the same quarter last year.

The Valspar Corp ((VAL)) rose 20 cents to $107 after the paints and coatings products maker reported net sales in the second-quarter ending on April 29 fell 2% from a year ago to $1.06 billion.

Net income in the quarter dropped 11% to $80 million or 99 cents per diluted share compared to $90.3 million or $1.09 per share from the same quarter last year.

In light of the proposed merger transaction, Valspar withdrew its financial and earnings guidance for fiscal 2016 and the company will also not hold conference call to discuss quarterly financial results.