Bed Bath & Beyond Net Plunges 23%, BlackBerry Net Swings to Loss

Mukesh Buch
23 Jun, 2016
New York City

Accenture net surged 11% and the information services provider lifted earnings forecast. BlackBerry net swung to a loss after revenues declined 39%. Bed Bath & Beyond net plunged 23% on flat revenues. Red Hat profit soared 27% on 18% jump in revenues.

[R]12:00 PM New York – Accenture net surged 11% and the information services provider lifted earnings forecast. BlackBerry net swung to a loss after revenues declined 39%. Bed Bath & Beyond net plunged 23% on flat revenues. Red Hat profit soared 27% on 18% jump in revenues.[/R]

Tollbooth Index increased 88.05 or 0.8% to 10,620.26.

Earnings Review

Accenture Plc ((ACN)) slipped 96 cents to $118.07 after the Ireland-based outsourcing services provider reported revenues in the third-quarter ending in May soared 9% from a year ago to $8.97 billion.

Net income in the quarter surged 10.6% to $897.2 million or $1.41 per diluted share compared to $793.7 million or $1.24 per share from the same quarter last year.

Accenture forecasted revenues in the fourth-quarter in the range of $8.25 billion to $8.50 billion, a growth between 6% and 9% in local currency.

In the year, the company lifted diluted earnings per share estimated in the range of $6.03 to $6.07 from previously estimated range of $5.95 to $6.06.

BlackBerry Ltd ((BBRY)) increased 2.4% or 15 cents to $6.89 after the Canada-based smart-phone maker stated revenues in the first-quarter ending in May declined 39.2% from a year ago to $400 million.

Net in the quarter swung to a loss of $670 million or $1.28 per diluted share compared to profit of $68 million or 10 cents per share from the same quarter last year.

Chief executive officer John Chen said if sales continue to disappoint it would be better to consider exiting the hardware business and “we don’t want to run a business that drags on the bottom line,” and “It’s time for us to get to the profitability.”

Bed Bath & Beyond Inc ((BBBY)) gained 1.5% or 65 cents to $43.84 after the home furnishings retailer said net sales in the first-quarter ending on May 28 were flat from a year ago at $2.7 billion.

Comparable store sales in the quarter decrease 0.5%.

Net income in the quarter plunged 22.6% to $122.6 million or 80 cents per diluted share compared to $158.5 million or 93 cents per share from the same quarter last year.

Methode Electronics Inc ((“MEI)) soared 5.4% or $1.64 to $31.78 after the electronic component maker stated revenues in the fourth-quarter ending in April slumped 6.4% from a year ago to $212.8 million.

Net income in the quarter declined 15% to $22.6 million or 60 cents per diluted share compared to $26.6 million or 68 cents per share from the same quarter last year.

Red Hat Inc ((RHT)) dropped 2.7% or $2.16 to $77.58 after the open source software developer said net sales in the first-quarter ending in May jumped 18% from a year ago to $568 million.

Net income in the quarter soared 27.1% to $61 million or 33 cents per diluted share compared to $48 million or 26 cents per share from the same quarter last year.

Red Hat forecasted revenues in the year between $2.38 billion and $2.42 billion and diluted earnings per share in the range of $1.37 to $1.41.