With Future in Doubt Sears Plunges 15%, FedEx Net Jumps 11%

Mukesh Buch
22 Mar, 2017
New York City

Actuant net in the second-quarter swung to profit and reaffirmed revenues forecast. Bebe stores plans to close all retail stores but continue online operations and avoid bankruptcy filing. FedEx reaffirmed earnings forecast. Perry Ellis net swung to profit. Winnebago net soared.

[R]1:05 PM New York – Actuant net in the second-quarter swung to profit and reaffirmed revenues forecast. Bebe stores plans to close all retail stores but continue online operations and avoid bankruptcy filing. FedEx reaffirmed earnings forecast. Perry Ellis net swung to profit. Winnebago net soared.[/R]

Tollbooth Index increased 36.81 or 0.3% to 11,557.34.

Earnings Review

Actuant Corporation ((ATU)) slumped 2.7% or 75 cents to $27.40 after the industrial products maker said net sales in the second-quarter ending in February fell 2% from a year ago to $258.9 million.

Net in the quarter swung to profit $5.1 million or 8 cents per diluted share from a loss of $159.2 million or $2.70 in the same quarter last year.

Actuant reaffirmed revenues forecast in the fiscal 2017 between $1.08 billion and $1.13 billion and core sales may drop between 2% and 5% but lowered earnings per share in the range of $1.10 to $1.20 from $1.10 to $1.30.

Amaya Inc ((AYA)) rose 15 cents to $15.50 after the Canada-based technology-based gaming products provider stated revenues in the fourth-quarter ending in December jumped 5.9% from a year ago to $310.4 million.

Net in the quarter swung to profit $45 million or 23 cents per diluted share from a loss of $15.2 million or 13 cents in the same quarter last year.

bebe stores, inc ((BEBE)) jumped 6.7% or 24 cents to $3.81 after the Bloomberg said women''s apparel and accessories retailer plans to close stores and seek a turnaround as an online brand without filing for bankruptcy.

Although the retailer had no significant debt but it had lost about $200 million in the last four years.

FedEx Corporation ((FDX)) gained 1.5% or $2.67 to $194.51 after the air freight and logistics services provider reported revenues in the third-quarter ending in February soared 19% from a year ago to $15 billion.

Net income in the quarter jumped 11% to $562 million or $2.07 per diluted share from $507 million or $1.84 in the same quarter last year.

FedEx reaffirmed earnings per share in fiscal 2017 between $11.85 and $12.35 but including impact of acquisition of TNT Express earnings per share in the lower band of $10.80 to $11.30 from the earlier estimated range of $10.95 to $11.45.

Perry Ellis International, Inc ((PERY)) slumped 2.7% or 62 cents to $22.20 after the men’s clothing designer stated revenues in the fourth-quarter ending on January 28 dropped 4.7% from a year ago to $204 million.

Net in the quarter swung to profit $9 million or 59 cents per diluted share from a loss of $17.7 million or $1.18 in the same quarter last year.

The apparel designer forecasted fiscal 2018 total revenues in the range of $870 million to $880 million and diluted earnings per share between $2.07 and $2.17.

Sears Holdings Corp ((SHLD)) tumbled 15.8% or $1.44 to $7.66 after the integrated retailer said in a regulatory filing “our historical operating results indicate substantial doubt exists related to the company''s ability to continue as a going concern.”

Winnebago Industries, Inc ((WGO)) soared 7.8% or $2.15 to $29.85 after the outdoor recreation vehicles maker said revenues in the second-quarter ending on February 25 jumped 64.2% from a year ago to $370.5 million.

Net income in the quarter soared 63.3% to $15.3 million or 48 cents per diluted share from $9.4 million or 35 cents in the same quarter last year.