Lululemon Drops 8% on Outlook, VeriFone Plunges 16%

Mukesh Buch
02 Sep, 2016
New York City

Ambarella revenues 23% declined. Cooper Co profit doubled and revenues jumped 11%. Hurco net declined 26% on flat revenues. Lululemon net jumped 12% but the retailer offered weak revenue forecasts. VeriFone net swung to a loss.

[R]1:30 PM New York – Ambarella revenues 23% declined. Cooper Co profit doubled and revenues jumped 11%. Hurco net declined 26% on flat revenues. Lululemon net jumped 12% but the retailer offered weak revenue forecasts. VeriFone net swung to a loss.[/R]

Tollbooth Index increased 20.06 or 0.2% to 11,035.62.

Earnings Review

Ambarella Inc ((AMBA)) plunged 7.1% or $5.07 to $66.71 after the high-definition video chips maker said revenues in the second-quarter ending in July plummeted 22.6% from a year ago at $65.1 million.

Net income in the quarter tumbled 62.8% to $8.6 million or 25 cents per diluted share compared to the $23.1 million or 68 cents per share from the same quarter last year.

Cooper Companies Inc ((COO)) slipped 1.2% or $2.32 to $183.05 after the medical devices maker reported revenues in the third-quarter ending in July jumped 11% from a year ago at $514.7 million.

Net income in the quarter double to $87.9 million or $1.79 per diluted share compared to the $44.9 million or 91 cents per share from the same quarter last year.

Hurco Companies, Inc ((HURC)) dropped 2.5% or 72 cents to $27.24 after the testing and measuring equipment maker said revenues in the third-quarter ending in July nearly flat from a year ago at $52.4 million.

Net income in the quarter declined 26.1% to $2.7 million or 40 cents per diluted share compared to the $3.7 million or 55 cents per share from the same quarter last year.

Hurco said sales in the North American region plunged 19% and in U.K. sales slid 1% while sales in Asia Pacific surged 66%.

Lululemon Athletica Inc ((LULU)) plummeted 9.1% or $6.99 to $69.68 after the athletic apparel retailer reported revenues in the second-quarter ending in July surged 14% from a year ago at $514.5 million.

Total comparable sales including comparable store sales and direct to consumer in the quarter jumped 4%.

Net income in the quarter jumped 12.4% to $53.6 million or 39 cents per diluted share compared to the $47.7 million or 34 cents per share from the same quarter last year.

In the third quarter the retailer forecasted net revenue in the range of $535 million to $545 million and diluted earnings per share between 42 cents and 44 cents.

Lululemon estimated revenues in the year between $2.33 billion and $2.35 billion and diluted earnings per share in the range of $2.11 to $2.19.

Liberty Tax Inc ((TAX)) declined 5.5% or 74 cents to $12.74 after the corporate accounting services provider stated revenues in the first-quarter ending in July slumped 5% from a year ago to $7.1 million.

Net loss in the quarter widened to $9.4 million compared to the $8.5 million and diluted loss per share increased to 73 cents to 67 cents.

VeriFone Systems Inc ((PAY)) tumbled 16% or $3.22 to $16.88 after the electronic payment services provider said revenues in the third-quarter ending in July dropped 4.3% from a year ago at $488.1 million.

Net in the quarter swung to a loss of $31.1 million or 28 cents per diluted share compared to the profit of $9.5 million or 8 cents per share from the same quarter last year.