Emerson Electric in $3.2 B Deal with Pentair; Buckle, Deere, Gap Net Fall

Mukesh Buch
19 Aug, 2016
New York City

Buckle net and revenues plunged. Deere net fell on 11% drop in revenues but lifted profit forecast. Estee Lauder net tumbled. Emerson Electric agreed to acquire valves & controls business of Pentair for $3.15 billion. Foot Locker net rose. Gap net plunged 43%.

[R]12:50 PM New York – Buckle net and revenues plunged. Deere net fell on 11% drop in revenues but lifted profit forecast. Estee Lauder net tumbled. Emerson Electric agreed to acquire valves & controls business of Pentair for $3.15 billion. Foot Locker net rose. Gap net plunged 43%.[/R]

Tollbooth Index fell 18.40 or 0.2% to 11,108.65.

Earnings Review

The Buckle, Inc ((BKE)) jumped 4% or $1.08 to $28.02 after the apparel, footwear and accessories retailer said net sales in the second-quarter ending in July declined 10.1% from a year ago to $212.2 million.

Comparable store sales in the quarter tumbled 10.8% but online sales increased 1.4% to $20.4 million.

Net income in the quarter plunged 34% to $15.5 million or 32 cents per diluted share compared to the $23.5 million or 49 cents per share from the same quarter last year.

Deere & Company ((DE)) soared 10.6% or $8.07 to $85.07 after the agriculture and turf, construction equipment maker reported revenues in the third-quarter ending in July plummeted 11% from a year ago to $6.7 billion.

Net income in the quarter dropped 4.5% to $488.8 million or $1.53 per diluted share compared to the $511.6 million or $1.53 per share from the same quarter last year.

Deere lifted net income estimate in the year of about $1.4 billion compared to the earlier forecast of about $1.2 billion.

The Estee Lauder Companies Inc ((EL)) slumped 3.2% or $3.03 to $92.07 after the personal care products maker said revenues in the fourth-quarter ending in June rose 5% from a year ago to $2.7 billion.

Net income in the quarter tumbled 38.9% to $93.5 million or 25 cents per diluted share compared to the $153 million or 40 cents per share from the same quarter last year.

In the fiscal first-quarter, Estee Lauder estimated net sales to increase in the range of 1% to 2% and diluted earnings per share between 65 cents and 71 cents.

In fiscal 2017, the cosmetics products maker forecasted net sales to increase between 6% and 7% and diluted earnings per share in the range of $3.20 to $3.30.

Emerson Electric Co ((EMR)) fell 3.5% or $1.92 to $52.73 after the automation equipment maker agreed to acquire the valves & controls business of Pentair for $3.15 billion in cash.

The acquisition is expected to close in the next four to six months.

Foot Locker Inc ((FL)) surged 11.3% or $6.99 to $68.63 after the shoes and apparel retailer stated net sales in the second-quarter ending in July advanced 5% from a year ago to $1.8 billion.

Comparable store sales in the quarter jumped 4.7%.

Net income in the quarter soared 6.7% to $127 million or 94 cents per diluted share compared to the $119 million or 84 cents per share from the same quarter last year.

The Gap, Inc ((GPS)) jumped 3.1% or 79 cents to $26.68 after the apparel and personal care products retail reported revenues in the second-quarter ending in July fell 1.3% from a year ago to $3.85 billion.

Comparable store sales in the quarter decreased 2%.

Net income in the quarter plunged 42.9% to $125 million or 31 cents per diluted share compared to the $219 million or 52 cents per share from the same quarter last year.

In fiscal 2016, the Gap forecasted diluted earnings per share in the range of $1.37 to $1.47.

Madison Square Garden Co ((MSG)) dropped 4.1% or $7.66 to $180.46 after the sports and entertainment events organizer said revenues in the fourth-quarter ending in June declined 14.6% from a year ago to $217.8 million.

Net loss in the quarter widened to $58.4 million or $2.39 per diluted share compared to the $1.1 million or 4 cents per share from the same quarter last year.

Stein Mart, Inc ((SMRT)) declined 3.7% or 33 cents to $8.66 after the specialty retailer stated net sales in the second-quarter ending in July increased 2.6% from a year ago to $319.8 million.

Comparable store sales in the quarter fell 1.4%.

Net income in the quarter plummeted 26.8% to $3 million or 6 cents per diluted share compared to the $4.1 million or 9 cents per share from the same quarter last year.