SUV and Truck Sales Lift CarMax; FedEx Net Swings to Profit

Mukesh Buch
21 Jun, 2017
New York City

Actuant declined after the industrial products maker lowered fiscal outlook. Adobe reported better than expected results on the surge in cloud revenue. FedEx lifted dividend. CarMax net jumped 5%. Korn/Ferry net soared. Red Hat sustained revenue momentum.

[R]2:10 PM New York – Actuant declined after the industrial products maker lowered fiscal outlook. Adobe reported better than expected results on the surge in cloud revenue. FedEx lifted dividend. CarMax net jumped 5%. Korn/Ferry net soared. Red Hat sustained revenue momentum.[/R]

Tollbooth Index fell 17.42 to 12,082.16.

Earnings Review

Actuant Corporation ((ATU)) declined 5.6% or $1.30 to $21.90 after the industrial products maker said revenues in the third-quarter ending in May fell 3% from a year ago to $295 million.

Net income in the quarter jumped 6.1% to $22.5 million or 37 cents per diluted share from $21.2 million or 36 cents in the same quarter last year.

Actuant lowered fiscal 2017 revenues forecast in the range of $1.08 billion to $1.09 billion and adjusted earnings per share to between 82 cents and 87 cents from $1.10 to 1.20 range.

In the full-year, lowered free cash flow estimate in the range of $65 million to $70 million compared to earlier estimated range of $85 million to $95 million.

Adobe Systems Inc ((ADBE)) jumped 3.6% or $5.11 to $146.02 after the application software developer reported revenues in the second-quarter ending on June 2 soared 28.6% from a year ago to $1.8 billion.

Net income in the quarter surged 53.4% to $374.4 million or 75 cents per diluted share from $244.1 million or 48 cents in the same quarter last year.

Cars.com Inc ((CARS)) rose 10 cents to $27 after the online vehicle shopping services provider stated revenues in the first-quarter ending in March grew 0.5% from a year ago to $153.2 million.

Net income in the quarter plunged 20.2% to $26.9 million from $33.7 million in the same quarter last year.

FedEx Corporation ((FDX)) slipped $1.02 to $208.95 after the air freight and logistics services provider reported revenues in the fourth-quarter ending in May jumped 20.8% from a year ago to $15.7 billion.

Net in the quarter swung to profit $1.02 billion or $3.75 per diluted share from a loss of $70 million or 26 cents in the same quarter last year.

CarMax, Inc ((KMX)) jumped 3.2% or $1.79 to $61.10 after the used vehicle retailer stated revenues in the first-quarter ending in May soared 10% from a year ago to $4.5 billion.

Net income in the quarter advanced 4.7% to $211.7 million or $1.13 per diluted share from $175.4 million or 90 cents in the same quarter last year.

Korn/Ferry International ((KFY)) advanced 2.7% or 92 cents to $34.78 after the recruitment services provider said total revenues in the fourth-quarter ending in April rose 0.6% from a year ago to $419.6 million.

Net income in the quarter soared to $26.9 million or 48 cents per diluted share from $5.8 million or 10 cents in the same quarter last year.

The recruitment services provider forecasted first-quarter revenues in the range of $382 million and $400 million and diluted earnings per share between 43 cents and 51 cents.

La-Z-Boy Inc ((LZB)) surged 17.6% or $4.60 to $30.80 after the furniture retailer stated sales in the fourth-quarter ending in April fell 1% from a year ago to $412.7 million.

Same-store sales for the La-Z-Boy Furniture Galleries network increased 2.4%.

Net income in the quarter jumped 23.3% to $28 million or 57 cents per diluted share from $22.7 million or 45 cents in the same quarter last year.

Red Hat Inc ((RHT)) soared 9.8% or $8.69 to $98.65 after the open source software provider reported revenues in the first-quarter ending in May surged 19% from a year ago to $677 million.

Net income in the quarter soared 19.7% to $73 million or 40 cents per diluted share from $61 million or 33 cents in the same quarter last year.

Red Hat said subscription revenue jumped 19% to $597 million, representing 88% of total revenue and operating income advanced 16% to $88 million.

In fiscal 2018, the open source software provider forecasted revenue between $2.79 billion and $2.83 billion and operating margin of about 15.4% and diluted earnings per share between $1.76 and $1.80.

Winnebago Industries, Inc ((WGO)) advanced 7.5% or $2.20 to $31.50 after the recreation vehicles maker said revenues in the third-quarter ending on May 27 soared 75.1% from a year ago to $476.4 million.

Net income in the quarter surged 34.7% to $19.4 million or 61 cents per diluted share from $14.4 million or 53 cents in the same quarter last year.