Boeing Signed Iran Deal, HP Enterprise Lowered Outlook

Mukesh Buch
04 Apr, 2017
New York City

Acuity Brands tumbled on weak second-quarter result. Conn`s surged on improved forecast. Boeing signed a deal to sell 30 737 Max single-aisle planes to an Iranian airline. CIT completed the sale of 30% stake in two aviation business. Hewlett Packard Entp lowered earnings forecast.

[R]12:10 PM New York – Acuity Brands tumbled on weak second-quarter result. Conn`s surged on improved forecast. Boeing signed a deal to sell 30 737 Max single-aisle planes to an Iranian airline. CIT completed the sale of 30% stake in two aviation business. Hewlett Packard Entp lowered earnings forecast.[/R]

Tollbooth Index slid 19.03 or 0.2% to 11,597.27.

Earnings Review

Acuity Brands, Inc ((AYI)) tumbled 14.2% or $28.89 to $175.17 after the lighting solutions provider reported net sales in the second-quarter ending in February jumped 3.5% from a year ago to $804.7 million.

Net income in the quarter rose 2.7% to $67.3 million or $1.53 per diluted share from profit of $65.5 million or $1.49 in the same quarter last year.

Boeing Co ((BA)) gained $1.26 to $177.91 after the military and civil aircrafts maker signed an agreement with Iran Aseman Airlines for the supply of up to 30 737 Max single-aisle planes. Deliveries scheduled to start in 2022 with a list price of $3 billion.

However in December, Boeing secured a contract worth $16.6 billion to sell 80 planes to Iran Air after the U.S. sanctions were removed. The agreement gives the purchase rights to the Iranian carrier for additional 30 737 Max planes.

CIT Group Inc jumped 2.4% or $1.03 to $43.49 after the finance, leas and advisory services provider said that it had completed the sale of 30% stake in the joint ventures TC-CIT Aviation Ireland and TC-CIT Aviation U.S., Inc. to its joint venture partner Tokyo Century Corporation.

Conn`s, Inc. ((CONN)) surged 24.9% or $2.15 to $10.60 after the consumer goods retailer said total revenues in the fourth-quarter ending in January declined 5.3% from a year ago to $432.8 million.

Net in the quarter swung to a loss of $0.1 million or break even per diluted share from profit of $1.1 million or 3 cents in the same quarter last year.

Hewlett Packard Enterprise Co ((HPE)) rose 14 cents to $17.71 after the technology solutions provider lowered its adjusted profit outlook.

In the second-quarter, the technology solutions provider lowered its earnings per share forecast between 33 cents to 37 cents from earlier estimated range of 41 cents to 45 cents.

In the full-year, earnings per share estimated in the range of $1.46 to $1.56 from the prior forecasted range of $1.88 to $1.98.

International Speedway Corp ((ISCA)) jumped 3.5% or $1.30 to $38.45 after the motorsports event organizer said total revenues in the firth-quarter ending in February advanced 3.8% from a year ago to $147.9 million.

Net income in the quarter soared 7.6% to $21.3 million or 47 cents per diluted share from profit of $19.8 million or 43 cents in the same quarter last year.

The sports events organizer reaffirmed revenues forecast in fiscal 2017 in the range of $660 million to $670 million and operating margin between 15.5% and 17% and diluted earnings per share in the range of $1.50 to $1.65.

""Financial results for our first quarter exceeded expectations,"" chief executive officer Lesa France Kennedy said.

Panera Bread Co ((PNRA)) slipped 1.8% or $5.20 to $277.43 after Bloomberg said the bakery and cafe chain is exploring several strategic options including a sale itself after received the takeover offers, include JAB Holding Co and Domino''s Pizza Inc.

As of March 31, market value of Panera Bread of about $6 billion.

VMware, Inc ((VMW)) rose 21 cents to $91.91 after the cloud infrastructure plans to sell its vCloud business to OVH, hyper-scale cloud provider.

Financial details of the transaction were not disclosed. The transaction is expected to close in second-quarter of this year.