HP Enterprise Beats Expectations, HD Supply Net Jumps

Mukesh Buch
06 Sep, 2017
New York City

Calavo Growers net plunged but revenues jumped 15%. Casey''s General net declined. Dave & Buster''s profit surged. Fred''s and G-III Apparel reported wider net loss. Hewlett Packard Enterprise net tumbled 93%. HD Supply profit soared. Navistar net swung to profit.

[R]11:45 PM New York – Calavo Growers net plunged but revenues jumped 15%. Casey''s General net declined. Dave & Buster''s profit surged. Fred''s and G-III Apparel reported wider net loss. Hewlett Packard Enterprise net tumbled 93%. HD Supply profit soared. Navistar net swung to profit.[/R]

Tollbooth Index slid 4.93 to 12,341.18.

Earnings Review

Calavo Growers, Inc ((CVGW)) soared 4.7% or $3.10 to $69.45 after the avocado producer said revenues in the third-quarter ending in July jumped 14.6% from a year ago to $301.6 million.

Net income in the quarter plunged 30.7% to $8.8 million or 50 cents per diluted share from $12.7 million or 73 cents in the same quarter last year.

“We expect to post our sixth consecutive quarter of double-digit revenue growth and reaffirmed double-digit revenue growth and higher year-over-year gross margin for fiscal 2017,” said chairman and chief executive officer Lecil E. Cole.

Casey''s General Stores Inc ((CASY)) slipped 1.2% or $1.29 to $103.54 after the convenience store operator reported revenues in the first-quarter ending in July advanced 6.1% from a year ago to $2.1 billion.

Same store sales in the quarter jumped 3.7% and grocery and other merchandise same-store sales jumped 3.1% and same-store gallon increased 1.7%.

Net income in the quarter dropped 15.7% to $56.8 million or $1.46 per diluted share from $67.4 million or $1.70 in the same quarter last year.

The convenience stores operator forecasted prepared food and fountain same store sales between 4% and 6% from the earlier estimated range between 5% and 7% and the expansion estimate to build or acquire 90 stores to 120 stores from the 80 stores to 120 stores.

Dave & Buster''s Entertainment, Inc ((PLAY)) plunged 9.7% or $5.65 to $52.59 after the entertainment and dining services provider said revenues in the second-quarter ending in July soared 14.9% from a year ago to $280.8 million.

Comparable store sales in the quarter increased 1.1%.

Net income in the quarter surged 41.4% to $30.4 million or 71 cents per diluted share from $21.5 million or 50 cents in the same quarter last year.

The alcoholic and non-alcoholic beverages provider estimated fiscal 2017 total revenues in the range of $1.16 billion to $1.17 billion and comparable store sales to increase between 1% and 2%.

The dining services provider lifted net income forecast in the range of $109 million to $113 million from the earlier estimated range between $107 million and $111 million.

Fred''s, Inc ((FRED)) surged 15.7% or 90 cents to $6.66 after the retail discount stores operator stated revenues in the second-quarter ending on July 29 slumped 4.1% from a year ago to $507.8 million.

Comparable store sales in the quarter fell 0.3%.

Net loss in the quarter widened to $29.5 million or 78 cents per diluted share from $6.9 million or 18 cents in the same quarter last year.

G-III Apparel Group, Ltd ((GIII)) soared 9.2% or $2.54 to $30.10 after the apparel retailer reported net sales in the second-quarter ending in July jumped 21.6% from a year ago to $538 million.

Net loss in the quarter widened to $8.6 million or 18 cents per diluted share from $1.3 million or 3 cents in the same quarter last year.

The retailer lifted fiscal 2018 revenues estimate of about $2.8 billion and net income between $56 million and $60 million and diluted earnings per share between $1.11 and $1.21.

However, earlier the wholesaler estimated fiscal 2018 net sales of $2.76 billion and net income between $52 million and $57 million diluted earnings per share in the range of $1.04 to $1.14.

GMS Inc ((GMS)) advanced 4.5% or $1.43 to $33.16 after the wood product distributor said revenues in the first-quarter ending in July soared 16.8% from a year ago to $642.2 million.

Same store sales in the quarter jumped 3.7% and grocery and other merchandise same-store sales jumped 3.1% and same-store gallon increased 1.7%.

Net income in the quarter jumped 67.4% to $15.3 million or 36 cents per diluted share from $9.2 million or 24 cents in the same quarter last year.

Hewlett Packard Enterprise Co ((HPE)) fell 12 cents to $13.91 after the technology solutions provider reported revenues in the third-quarter ending in July rose 3% from a year ago to $8.2 billion.

Net income in the quarter tumbled 92.8% to $165 million or 10 cents per diluted share from $2.3 billion or $1.32 in the same quarter last year

HD Supply Holdings Inc ((HDS)) advanced 2.7% or 87 cents to $33.56 after the diversified industrial distributor said net sales in the second-quarter ending in July jumped 5.4% from a year ago to $1.4 billion.

Net income in the quarter soared to $439 million or $2.22 per diluted share from $96 million or 49 cents in the same quarter last year.

The industrial distributor reaffirmed fiscal 2017 revenues forecast in the range of $5 billion and $5.1 billion and operating profit between $700 million and $730 million and diluted earnings per share in the range of $2.13 and $2.29.

Navistar International Corp ((NAV)) jumped 4.1% or $1.38 to $35.31 after the trucks, buses and military vehicles maker reported revenues in the third-quarter ending in July increased 6% from a year ago to $2.2 billion.

Net in the quarter swung to profit $37 million or 38 cents per diluted share from a loss of $34 million or 42 cents in the same quarter last year.