Ciena Drops on Forecast, Dollar General Tumbles Despite Higher Outlook

Mukesh Buch
31 Aug, 2017
New York City

Ciena tumbled on weak fourth-quarter outlook. Campbell Soup net swung to profit but warns sales may decline. Dollar General beat sales growth and lifted earnings forecast but stock drops on competitive environment worries. Genesco net swung to a loss. Workday net loss narrowed.

[R]12:15 PM New York – Ciena tumbled on weak fourth-quarter outlook. Campbell Soup net swung to profit but warns sales may decline. Dollar General beat sales growth and lifted earnings forecast but stock drops on competitive environment worries. Genesco net swung to a loss. Workday net loss narrowed.[/R]

Tollbooth Index increased 45.25 or 0.4% to 12,359.44.

Earnings Review

Ciena Corporation ((CIEN)) tumbled 11.3% or $2.75 to $21.53 after the communication network services provider reported revenues in the third-quarter ending in July jumped 8.7% from a year ago to $728.7 million.

Net income in the quarter surged 79.1% to $60 million or 39 cents per diluted share from $33.5 million or 23 cents in the same quarter last year.

Ciena forecasted revenues in the fiscal fourth-quarter in the range of $720 million to $750 million and non-GAAP operating expense of about $240 million.

Campbell Soup Company ((CPB)) declined 6.1% or $3.06 to $47.22 after the condensed and ready-to-serve soups maker said net sales in the fourth-quarter ending in July slid 1% from a year ago to $1.7 billion.

Net in the quarter swung to profit $440 million or $1.04 per diluted share from a loss of $37 million or 26 cents in the same quarter last year.

“The operating environment for the packaged foods industry remains challenging and in these times, sales growth remains a challenge,” said president and chief executive officer Denise Morriso.

Dollar General Corp ((DG)) plummeted 7.7% or $5.94 to $70.78 after the discount retailer reported net sales in the second-quarter ending on August 4 soared 8.1% from a year ago to $5.8 billion.

Same store sales in the quarter advanced 2.6%.

Net income in the quarter dropped 3.9% to $295 million from $307 million and diluted earnings per share were flat at $1.08 from the same quarter a year ago.

The retailer lifted diluted earnings per share forecast in the range of $4.35 to $4.50 from the earlier estimate of $4.25 to $4.50 and net sales to jump between 5% and 7% and same-store sales to increase 2%.

Genesco Inc ((GCO)) slumped 13.7% or $3.50 to $22 after the footwear, apparel and accessories retailer and wholesaler stated net sales in the second-quarter ending on July 29 fell 1.4% from a year ago to $616.5 million.

Comparable store sales in the quarter were flat.

Net in the quarter swung to a loss of $3.9 million or 21 cents per diluted share from profit of $14.6 million or 72 cents in the same quarter last year.

Lands'' End, Inc ((LE)) plunged 8.2% or $1.14 to $12.71 after the casual clothing, accessories and footwear retailer said revenues in the second-quarter ending on July 28 increased 3.5% from a year ago to $302.2 million.

Same store sales in the quarter jumped 3.8%.

Net loss in the quarter widened to $3.9 million or 12 cents per diluted share from $2 million or 6 cents in the same quarter last year.

Methode Electronics Inc ((MEI)) jumped 4.3% or $1.70 to $41.20 after the electrical and electronic devices maker stated net sales in the first-quarter ending on July 29 soared 64.4% from a year ago to $1.4 billion.

Net income in the quarter tumbled 70.1% to $68.9 million or 18 cents per diluted share from $230.4 million or 74 cents in the same quarter last year.

Semtech Corporation ((SMTC)) declined 4.8% or $1.89 to $37.16 after the semiconductors supplier said revenues in the second-quarter ending in July jumped 13% from a year ago to $153.1 million.

Net income in the quarter soared 40.3% to $12.6 million or 19 cents per diluted share from $9 million or 14 cents in the same quarter last year.

Workday Inc ((WDAY)) slid 2 cents to $107.53 after the cloud enterprise applications provider reported total revenues in the second-quarter ending in July soared 40.6% from a year ago to $525.3 million.

Net loss in the quarter narrowed to $82.5 million or 40 cents per diluted share from $107.8 million or 55 cents in the same quarter last year.