Target Soars on Positive Customer Trend, Lowe's Slashes Outlook

Mukesh Buch
16 Nov, 2016
New York City

Agilent net declined 11% but revenues jumped on stronger than expected growth in Europe and in China. Brady net surged 21%. Meritor net swung to profit despite 15% plunge in revenues. Lowe''s net tumbled 49% and the retailer estimated annual revenues to jump between 9% and 10%. Target net soared 11%.

[R]2:10 PM New York – Agilent net declined 11% but revenues jumped on stronger than expected growth in Europe and in China. Brady net surged 21%. Meritor net swung to profit despite 15% plunge in revenues. Lowe''s net tumbled 49% and the retailer estimated annual revenues to jump between 9% and 10%. Target net soared 11%.[/R]

Tollbooth Index increased 47.52 or 0.4% to 10,881.50.

Earnings Review

Agilent Technologies Inc ((A)) jumped 2.9% or $1.33 to $46.72 after the laboratory products provider reported revenues in the fourth-quarter ending in October soared 7.3% from a year ago to $1.1 billion.

Net income in the quarter declined 11% to $124 million or 38 cents per diluted share compared to the $140 million or 42 cents per share from the same quarter last year.

The testing equipment provider said increase in revenues mainly due to stronger than estimated pharma growth in Europe and in China.

Agilent estimated revenue in the first-quarter in the range of $1.04 billion to $1.06 billion and non-GAAP earnings per share in the range of 48 cents to 50 cents.

Brady Corporation ((BRC)) declined 3.6% or $1.35 to $35.90 after the safety products provider said sales in the first-quarter ending in October fell 1% from a year ago to $280.2 billion.

Net income in the quarter surged 20.6% to $22.6 million or 44 cents per diluted share compared to the $18.7 million or 37 cents per share from the same quarter last year.

The identification solutions provider forecasted diluted earnings per share in the year remains unchanged at $1.55 to $1.70.

Lowe''s Companies, Inc ((LOW)) dropped 2.5% or $1.73 to $67.30 after the home improvement retailer reported sales in the third-quarter ending on October 28 soared 9.6% from a year ago to $15.7 billion.

Comparable store sales in the quarter advanced 2.7% and comparable sales in the U.S. home improvement business increased 2.6%.

Net income in the quarter tumbled 48.5% to $379 million or 43 cents per diluted share compared to the $736 million or 80 cents per share from the same quarter last year.

The retailer forecasted total sales in the year to jump between 9% and 10% and comparable sales to increase between 3% and 4% and diluted earnings per share of about $3.52.

Meritor Inc ((MTOR)) rose 8 cents to $12.10 after the braking and suspension systems maker stated sales in the fourth-quarter ending in September plunged 15% from a year ago to $728 billion.

Net in the quarter swung to profit $452 million or $5.10 per diluted share compared to the loss of $21 million or 22 cents per share from the same quarter last year.

Meritor estimated revenues in the year in the range of $3 billion and $3.1 billion and net income between $80 million and $85 million and diluted earnings per share to increase in the range of 90 cents to 95 cents.

Target Corporation ((TGT)) surged 8.2% or $5.83 to $77.25 after the discount stores operator reported sales in the third-quarter ending on October 29 declined 6.7% from a year ago to $16.4 billion.

Comparable store sales in the quarter fell 0.2% and sales in the U.S. based stores jumped 5.9%.

Net income in the quarter soared 10.7% to $608 million or $1.06 per diluted share compared to the $549 million or 87 cents per share from the same quarter last year.

Target lifted comparable sales growth guidance in the fourth-quarter to range between 1% decline and 1% increase compared to the prior guidance of 2% decline to flat and earnings per share in the range of $1.55 to $1.75.