Dean Foods Tumbles; Michael Kors, Ralph Lauren Surge

Mukesh Buch
08 Aug, 2017
New York City

CBS net tumbled 86% but revenues jumped 9%. CVS Health lowered full year earnings outlook. Dean Foods net declined 47%. Gartner net swung to a loss but revenues surged. Icahn Enterprises net swung to profit. Michael Kors net and sales plunged.

[R]12:15 PM New York – CBS net tumbled 86% but revenues jumped 9%. CVS Health lowered full year earnings outlook. Dean Foods net declined 47%. Gartner net swung to a loss but revenues surged. Icahn Enterprises net swung to profit. Michael Kors net and sales plunged.[/R]

Tollbooth Index slid 8.62 to 12,456.32.

Earnings Review

CBS Corporation ((CBS)) advanced 2.8% or $1.81 to $66.33 after the broadcasting services provider said revenues in the second-quarter ending in June jumped 9% from a year ago to $3.3 billion.

Net income in the quarter tumbled 86.3% to $58 million or 14 cents per diluted share from $423 million or 93 cents in the same quarter last year.

CBS said advertising and content licensing and distribution revenue increased and entertainment revenues surged 12% to $2.18 billion.

CVS Health Corporation ((CVS)) dropped 1.8% or $1.40 to $77.72 after the drug store retailer reported revenues in the second-quarter ending in June increased 4.5% from a year ago to $45.7 billion.

Pharmacy same store sales decreased 2.8% and same store prescription volumes in the period remained flat and front store same store sales declined 2.1% and were negatively impacted by softer customer traffic.

Net income in the quarter soared 19% to $1.1 billion or $1.07 per diluted share from $924 million or 86 cents in the same quarter last year.

In the third-quarter, CVS estimated diluted earnings per share in the range of $1.20 to $1.23.

The drugs retailer lowered full year diluted earnings per share forecast to between $4.92 and $5.02 from the earlier estimate of $5.02 to $5.18 and cash flow of $6 billion to $6.4 billion.

Envision Healthcare Corp ((AMSG)), the healthcare services provider reached a deal to sell its medical transportation unit American Medical Response for about $2.4 billion in cash to buyout firm KKR & Co''s portfolio company, Air Medical Group Holdings.

The transaction is expected to close in the fourth-quarter of this year.

Dean Foods Co ((DF)) tumbled 19.4% or $2.91 to $12.0 after the food and beverage provider stated revenues in the second-quarter ending in June rose 4.3% from a year ago to $1.9 billion.

Net income in the quarter declined 47.3% to $17.6 million or 19 cents per diluted share from $33.4 million or 36 cents in the same quarter last year.

Gartner Inc ((IT)) slumped 3.9% or $4.90 to $121.10 after the research and advisory information technology provider said total revenues in the second-quarter ending in June surged 38% from a year ago to $843.7 million.

Net in the quarter swung to a loss of $92.3 million or $1.03 per diluted share from profit of $51.6 million or 62 cents in the same quarter last year.

Gartner forecasted fiscal 2017 total revenues between $3.23 billion and $3.32 billion and diluted earnings per share in the range of $1 to 71 cents.

Icahn Enterprises LP ((IEP)) slid 11 cents to $53.70 after the property developer stated revenues in the second-quarter ending in June soared 52.3% from a year ago to $6.7 billion.

Net in the quarter swung to profit $1.6 billion or $9.51 per diluted share from a loss of $69 million or 50 cents in the same quarter last year.

Michael Kors Holdings Ltd ((KORS)) surged 20.5% or $7.64 to $44.88 after the U.K.-focused branded apparel and accessories retailer said total revenues in the first-quarter ending in June dropped 3.6% from a year ago to $952.4 million.

Comparable sales in the quarter declined 5.9%.

Net income in the quarter plunged 14.7% to $125.5 million or 80 cents per diluted share from $147.1 million or 83 cents in the same quarter last year.

Retail net sales in the quarter jumped 10.1% to $619.9 million was driven by opening of 67 new stores worldwide as well as a 60 percent surge in sales in Asia and the acquisition of the Greater China license.

The retailer forecasted fiscal second-quarter total revenue between $1.04 billion and $1.06 billion and comparable sales decrease in the mid-single digits range and diluted earnings per share in the range of 80 cents to 84 cents.

Ralph Lauren Corporation ((RL)) jumped 9.9% or $7.78 to $85.91 after the lifestyle products designer reported revenues in the first-quarter ending in June declined 13% from a year ago to $1.3 billion.

Net in the quarter swung to profit $59.5 million or 72 cents per diluted share from a loss of $22.3 million or 27 cents in the same quarter last year.