Lululemon Surges on Restructuring Plan, PPG Withdraws Akzo Bid

Mukesh Buch
02 Jun, 2017
New York City

Cooper Companies beats second-quarter estimates and offered improved outlook. Lululemon net declined 31% and the retailer plans to restructure kids'' clothing business. PPG withdraws its bid to acquire Netherland-based Akzo Nobel. VMware net soared 44%. Workday net loss narrowed.

[R]12:25 PM New York – Cooper Companies beats second-quarter estimates and offered improved outlook. Lululemon net declined 31% and the retailer plans to restructure kids'' clothing business. PPG withdraws its bid to acquire Netherland-based Akzo Nobel. VMware net soared 44%. Workday net loss narrowed.[/R]

Tollbooth Index jumped 49.55 or 0.4% to 12,377.09.

Earnings Review

The Cooper Companies, Inc ((COO)) soared 7.9% or $17.50 to $237.29 after the medical devices maker reported revenues in the second-quarter ending in April jumped 8% from a year ago to $522.4 million.

Net income in the quarter surged 41.5% to $104.9 million or $2.12 per diluted share from $74.1 million or $1.52 in the same quarter last year.

Cooper forecasted fiscal 2017 revenues in the range of $2.11 billion to $2.14 billion and diluted earnings per share between $9.50 and $9.65.

Hovnanian Enterprises, Inc ((HOV)) plunged 7.4% or 19 cents to $2.32 after the residential home builder reported revenues in the second-quarter ending in April declined 10.5% from a year ago to $585.9 million.

Net loss in the quarter narrowed to $6.7 million or 5 cents per diluted share from $8.5 million or 6 cents in the same quarter last year.

IXYS Corporation ((IXYS)) jumped 5.6% or 85 cents to $15.60 after the mixed-signal integrated circuits maker said revenues in the fourth-quarter ending in March advanced 4.9% from a year ago to $83.4 million.

Net income in the quarter surged 50% to $9.3 million or 28 cents per diluted share from $6.2 million or 19 cents in the same quarter last year.

Lululemon Athletica inc ((LULU)) surged 12.5% or $6.08 to $54.75 after the athletic apparel retailer reported revenues in the first-quarter ending in April advanced 5% from a year ago to $520.3 million.

Comparable store sales decreased 2% and direct-to-consumer net revenues were flat.

Net income in the quarter declined 31% to $31.2 million or 23 cents per diluted share from $45.3 million or 33 cents in the same quarter last year.

In the second-quarter, Lululemon estimated net revenue in the range of $565 million to $570 million based on comparable store sales increase in the low-to-mid single digits and diluted earnings per share between 13 cents to 15 cents.

In the full-year, the athletic apparel retailer forecasted net revenues in the range of $2.53 billion to $2.58 billion based on comparable sales increase in the low-single digits and diluted earnings per share between $1.97 and $2.07.

Lululemon plans to restructure its kids'' clothing business by the third-quarter.

PPG Industries, Inc ((PPG)) gained 82 cents to $109.98 after the paints and coatings maker dropped its attempt to acquire the Netherland-based Akzo Nobel NV in €26.3 billion or $29.5 billion after repeated rejections and legal defeats.

VMware, Inc ((VMW)) dropped 1.5% or $1.47 to $95.93 after the information technology provider said revenues in the first-quarter ending in April surged 9% from a year ago to $1.7 billion.

Net income in the quarter soared 44.1% to $232 million or 56 cents per diluted share from $161 million or 38 cents in the same quarter last year.

VMware revised its fiscal calendar effective January 1, 2017 and first fiscal year under its revised fiscal calendar began on February 4, 2017 and will end February 2, 2018.

Workday Inc ((WDAY)) increased 1% or $1.04 to $102.57 after the enterprise cloud applications provider reported revenues in the first-quarter ending in April soared 38% from a year ago to $479.9 million.

Net loss in the quarter narrowed to $64 million or 31 cents per diluted share from $78.5 million or 40 cents in the same quarter last year.