Parker-Hannifin in $4.3 B Deal with Clarcor; Express, Guess Decline

Mukesh Buch
01 Dec, 2016
New York City

Donaldson on positive outlook. Dollar General declined on weak earnings outlook. Express net plummeted 56% and the retailer lowered comparable sales forecast. Guess profit plunged 27%. Kroger net dropped 9%. L Brands comparable sales in November jumped.

[R]2:10 PM New York – Donaldson on positive outlook. Dollar General declined on weak earnings outlook. Express net plummeted 56% and the retailer lowered comparable sales forecast. Guess profit plunged 27%. Kroger net dropped 9%. L Brands comparable sales in November jumped.[/R]

Tollbooth Index dropped 54.68 or 0.5% to 10,977.76.

Earnings Review

Donaldson Company, Inc ((DCI)) surged 12.9% or $5.22 to $45.78 after the filtration systems provider said sales in the first-quarter ending on October 29 fell 2.8% from a year ago to $553 million.

Net income in the quarter soared 50.6% to $58 million or 43 cents per diluted share compared to the $38.5 million or 29 cents per share from the same quarter last year.

Donaldson forecasted diluted earnings per share in the year between $1.50 and $1.66 and reaffirmed total sales to fall between 2% and increase 2% compared to 2016 sales.

Dollar General Corp ((DG)) declined 6.9% or $5.40 to $71.91 after the discount retailer reported net sales in the third-quarter ending on October 28 jumped 5% from a year ago to $506.1 million.

Same-store sales in the quarter decreased 0.1%.

Net income in the quarter slumped 7.1% to $235 million or 84 cents per diluted share compared to the $253 million or 86 cents per share from the same quarter last year.

The discount retailer now forecasted earnings per share in the fiscal year at the low end of the long-term growth model in the range of 10% to 15%.

The retailer also plans to open approximately 1,000 new stores and remodel or relocate 900 stores.

Express, Inc ((EXPR)) tumbled 21.9% or $2.93 to $10.43 after the specialty apparel and accessories retailer said net sales in the third-quarter ending on October 29 declined 7% from a year ago to $506.1 million.

Comparable store sales in the quarter plunged 8% while online sales surged 15% to $96.3 million.

Net income in the quarter plummeted 55.9% to $11.6 million or 15 cents per diluted share compared to the $26.3 million or 31 cents per share from the same quarter last year.

The retailer lowered comparable sales forecast in the fourth-quarter to shrink in low double digits from 4% jump in a year ago period.

The retailer also estimated net income in the range of $20 million to $23 million from $56.1 million in year ago period and diluted earnings per share between 26 cents and 30 cents compared to the 67 cents in a year ago period.

Guess?, Inc ((GES)) plunged 11.3% or $1.73 to $13.58 after the lifestyle apparel and accessories retailer stated total net revenues in the third-quarter ending on October 29 increased 2.9% from a year ago to $536.3 million.

Comparable store sales in the quarter declined 4.9%.

Net income in the quarter dropped 26.6% to $9.1 million or 11 cents per diluted share compared to the $12.4 million or 15 cents per share from the same quarter last year.

Kroger Co ((KR)) rose 4 cents to $32.34 after the food and drug stores retailer reported total sales in the third-quarter ending on November 5 advanced 5.9% from a year ago to $26.6 billion.

Net income in the quarter declined 8.6% to $391 million or 41 cents per diluted share compared to the $428 million or 44 cents per share from the same quarter last year.

Kroger lowered its diluted earnings per share forecast in the year between $2.03 and $2.08 compared to the earlier estimated range of $2.03 to $2.13.

L Brands Inc ((LB)) jumped 2.8% or $1.93 to $72.18 after the specialty retailer said net sales in four-weeks ending on November 26 soared 7% to $1.2 billion.

Comparable store sales in the month increased 4%.

Parker-Hannifin Corp ((PH)) increased 2.9% or $4.14 to $143.07 after the industrial equipment maker plans to acquire air filtration systems maker Clarcor Inc for about $4.3 billion, including debt.

The transaction is expected to close during Parker''s first-quarter of fiscal 2018.

Clarcor Inc stock surged 16.9% to $82.40.