Bed Bath & Beyond Drops to 7-Year Low, BlackBerry Swings to Profit

Mukesh Buch
23 Jun, 2017
New York City

Apogee net dropped but revenues jumped. AVEO Pharma surged on the approval of its cancer drug in Europe. Bed Bath & Beyond stock dropped to a 7-year low. BlackBerry net swung to profit. Siris Capital offered to acquire Synchronoss for $835 million.

[R]12:00 PM New York – Apogee net dropped but revenues jumped. AVEO Pharma surged on the approval of its cancer drug Europe. Bed Bath & Beyond stock dropped to a 7-year low. BlackBerry net swung to profit. Siris Capital offered to acquire Synchronoss for $835 million.[/R]

Tollbooth Index gained 49.16 or 0.4% to 12,130.52.

Earnings Review

Apogee Enterprises Inc ((APOG)) slipped 1.3% or 71 cents to $54.52 after the construction and fixtures provider said revenues in the first-quarter ending on June 3 jumped 10% from a year ago to $272.3 million.

Net income in the quarter dropped 9% to $16.1 million or 56 cents per diluted share from $17.7 million or 61 cents in the same quarter last year.

Apogee forecasted fiscal 2018 revenues to increase between 26% and 28% and operating margin in the range of 10.5% to 11% and diluted earnings per share in the range of $3.31 to $3.51.

AVEO Pharmaceuticals, Inc ((AVEO)) soared 60.8% to $1.17 after the European Medicines Agency recommended for approval in Europe for cancer drugs tivozanib and the drug is licensed in Europe for advanced renal cell carcinoma, common type of kidney cancer.

Bed Bath & Beyond Inc ((BBBY)) tumbled 12.1% or $4.09 to $29.65 after the home furnishings retailer reported net sales in the first-quarter ending on May 27 edged up 0.1% from a year ago to $2.7 billion.

Comparable sales in the quarter decreased 2% but comparable sales from digital channels surged 20%.

Net income in the quarter plunged 38.6% to $75.3 million or 53 cents per diluted share from $122.6 million or 80 cents in the same quarter last year.

BlackBerry Ltd ((BBRY)) plummeted 12% or $1.34 to $9.73 after the Canada-based mobile communication services provider said revenues in the first-quarter ending in May plunged 41.2% from a year ago to $235 million.

Net in the quarter swung to profit $671 million or $1.23 per diluted share from a loss of $670 million or $1.28 in the same quarter last year.

BlackBerry said as of May-quarter total cash balance increased to $2.6 billion and the mobile phone maker was awarded $940 million from the Qualcomm arbitration settlement.

Braskem SA, the Brazil-based thermoplastic resins producer plans to build new massive polypropylene resin plant in La Porte, Texas with an investment of up to $675 million and estimated polypropylene production capacity worth £1 billion.

The resins producer said construction is expected to begin mid-summer and the final phase of main construction is targeted to be finished by the first-quarter of 2020.

Currently, Braskem operates nearly £800 million of annual PP capacity in La Porte.

The Finish Line, Inc ((FINL)) soared 10% or $1.27 to $14 after the specialty retailer stated net sales in the first-quarter ending on May 27 slid 0.1% from a year ago to $429.8 million.

Comparable sales in the quarter fell 1.1% while Finish Line Macy’s sales surged 13.6%.

Net income in the quarter declined 15.6% to $8.1 million or 20 cents per diluted share from $9.6 million or 23 cents in the same quarter last year.

Finish Line estimated fiscal 2017 comparable store sales to increase in the low-single digits range and earnings per share between $1.12 and $1.23.

Forestar Group Inc ((FOR)) jumped 5.1% or 90 cents to $17.40 after the single-family residential homebuilder said it had received a revised binding proposal from rival D.R. Horton, Inc to acquire 75% stake for $17.75 per share in cash, higher compared to its previous offer of $16.25 in cash per share.

Sonic Corporation ((SONC)) advanced 4.2% or $1.15 to $28.65 after the restaurants chain operator stated revenues in the third-quarter ending in May declined 24.9% from a year ago to $124 million.

System same-store sales declined 1.2%, consisting of a 1.1% same-store sales decrease at franchise drive-ins and a 3.2% decrease at company drive-ins.

Net income in the quarter soared 22.1% to $18.8 million or 44 cents per diluted share from $15.4 million or 31 cents in the same quarter last year.

Synnex Corporation ((SNX)) jumped 3.1% or $3.83 to $125.67 after the business process services provider said revenues in the second-quarter ending in May jumped 16.5% from a year ago to $3.9 billion.

Net income in the quarter surged 64.9% to $73.1 million or $1.83 per diluted share from $44.4 million or $1.11 in the same quarter last year.

Synnex forecasted third-quarter revenues in the range of $3.90 billion to $4.10 billion and net income between $67.7 million and $70.7 million and diluted earnings per share in the range of $1.68 to $1.76.

Synchronoss Technologies, Inc ((SNCR)) surged 35.5% or $4.32 to $16.50 after the cloud computing services provider received cash offer for $18 per share from the private-equity firm Siris Capital Group LLC that valued at $834.6 million.