GameStop, Finish Line Plunge Highlight Retailer Woes; REX Rebounds

Mukesh Buch
24 Mar, 2017
New York City

Basic Energy net loss widened after the oil driller emerged from prepackaged bankruptcy. Finish Line net swung to a loss. GameStop plunged after revenues declined. KB Home net jumped 9%. Micron Technology net swung to profit and revenues soared 58%. REX American net surged.

[R]12:30 PM New York – Basic Energy net loss widened after the oil driller emerged from prepackaged bankruptcy. Finish Line net swung to a loss. GameStop plunged after revenues declined. KB Home net jumped 9%. Micron Technology net swung to profit and revenues soared 58%. REX American net surged.[/R]

Tollbooth Index advanced 58.75 or 0.5% to 11,589.28.

Earnings Review

Basic Energy Services Inc, the privately held oil and gas drilling services provider said total revenues in the fourth-quarter ending in December fell 3% from a year ago to $155.5 million.

Net loss in the quarter widened to $152.8 million or $3.58 per diluted share from $55.2 million or $1.36 in the same quarter last year.

The drilling services provider emerged from Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016.

For the fourth quarter of 2016, the Basic predecessor reported a net loss of $152.8 million and and diluted loss per share of $3.58.

Finish Line Inc ((FINL)) tumbled 17.1% to $2.75 to $13.31 after the specialty retailer said revenues in the fourth-quarter ending on February 25 slid 0.4% from a year ago to $557.5 million.

Comparable sales in the quarter declined 4.5% while Finish Line sales at Macy’s stores soared 35%.

Net in the quarter swung to a loss of $9.5 million or 23 cents per diluted share from profit of $4 million or 9 cents in the same quarter last year.

Finish Line forecasted comparable sales to increase in low-single digits and earnings per share in the range of $1.12 to $1.23, an increase of 6% to 16%.

As of February 25, the retailer had no interest-bearing debt and $90.9 million in cash and cash equivalents compared to $79.5 million in the same period a year ago.

GameStop Corp ((GME)) plunged 12.4% or $2.96 to $21 after the video game retailer stated total sales in the fourth-quarter ending on January 28 declined 13.6% from a year ago to $3.05 billion.

Comparable store sales in the quarter plummeted 16.3%, 20.8% plunge in the U.S. and 4.6% decline in international markets.

Net income in the quarter slumped 15.8% to $208.7 million or $2.04 per diluted share from $247.8 million or $2.36 in the same quarter last year.

In fiscal 2017, the game retailer forecasted revenue growth to range between $2 billion decline or $2 billion increase and comparable store sales to fall 5% to break even.

The retailer estimated net income in the year between $320 million and $354 million and diluted earnings per share in the range of $3.10 to $3.40.

KB Home ((KBH)) gained 1.2% or 23 cents to $19.55 after the home-builder stated revenues in the first-quarter ending in February jumped 28% from a year ago to $818.6 million.

Net income in the quarter soared 9% to $14.3 million or 15 cents per diluted share from $13.1 million or 14 cents in the same quarter last year.

Micron Technology, Inc ((MU)) surged 9.1% or $2.40 to $28.88 after the semiconductor systems maker reported revenues in the second-quarter ending on March 2 soared 58% from a year ago to $4.7 billion.

Net in the quarter swung to profit $894 million or 77 cents per diluted share from a loss of $97 million or 9 cents in the same quarter last year.

REX American Resources Corp ((REX)) jumped 3.1% or $2.47 to $82.08 after the ethanol producer said revenues in the fourth-quarter ending in January soared 13.4% from a year ago to $121.6 million.

Net income in the quarter jumped three-fold to $12.4 million or $1.88 per diluted share from $3.7 million or 54 cents in the same quarter last year.

The ethanol producer said improved revenues in the quarter was benefited from the higher average prices for ethanol and lower corn prices resulted in more favorable ethanol crush spread margins.