Costco Launches Delivery Service, Omega Protein to Merger with Cooke

Mukesh Buch
06 Oct, 2017
New York City

Costco launches delivery services battling Wal-Mart and Amazon. Eros International revenues tumbled. Helen of Troy tumbled after net declined 69%. Omega Protein agreed to be acquired by Canada-based Cooke. Rocky Mountain net fell. Village Super Market net plunged.

[R]12:15 PM New York – Costco launches delivery services battling Wal-Mart and Amazon. Eros International revenues tumbled. Helen of Troy tumbled after net declined 69%. Omega Protein agreed to be acquired by Canada-based Cooke. Rocky Mountain net fell. Village Super Market net plunged.[/R]

Tollbooth Index fell 21.73 or 0.2% to 12,750.80.

Earnings Review

Costco Wholesale Corporation ((COST)) plunged 5.7% or $9.51 to $157.54 after the discount stores operator reported stated net sales in the fourth-quarter ending on September 3 surged 15.8% from a year ago to $41.4 billion.

Comparable store sales in the quarter jumped 6.1% and online sales advanced 21%.

Net income in the quarter soared 18% to $919 million or $2.08 per diluted share from $779 million or $1.77 in the same quarter last year.

Costco launched two new grocery delivery services in a week to compete with Amazon and Wal-Mart.

The chief financial officer Richard Galanti said that the membership-based chain started two-day delivery in dry groceries and same-day delivery service including fresh food.

Eros International Plc ((EROS)) declined 3.3% or 45 cents to $14.80 after the Indian film producer said revenues in the first-quarter ending in June plunged 14.4% from a year ago to $60.8 million.

Net income in the quarter tumbled 47.1% to $1.8 million or loss of 2.3 cents per diluted share from $3.4 million or 3.1 cents in the same quarter last year.

The film producer said gross profit in the quarter soared 12.1% to $25.9 million from $23.1 million in the same period a year ago.

Helen of Troy Limited ((HELE)) tumbled 8.1% or $7.90 to $89.20 after the Bermuda-based consumer products maker stated revenues in the second-quarter ending in August increased 2.8% from a year ago to $378.5 million.

Net income in the quarter declined 68.7% to $8.9 million or 33 cents per diluted share from $28.4 million or $1 in the same quarter last year.

The tools and house-wares maker forecasted fiscal 2018 revenues in the range of $1.56 billion to $1.59 billion and diluted earnings per share in the range $4.01 to $4.34.

Omega Protein Corporation ((OME)) surged 32.5% or $5.40 to $22 after the nutritional product maker agreed to be acquired by Canada-based seafood supplier and distributor Cooke Inc for $22 per share or about $500 million in cash.

The transaction is expected to close by the end of 2017 or in early 2018.

Rocky Mountain Chocolate Factory, Inc ((RMCF)) rose 10 cents to $11.76 after the frozen yogurt stores operator said total revenues in the second-quarter ending in August decreased 3.9% from a year ago to $8.3 million.

Net income in the quarter dropped 4.8% to $0.93 million from $0.98 million and diluted earnings per share were flat at 16 cents compared to a year ago period.

Village Super Market, Inc ((VLGEA)) slumped 3.4% or 88 cents to $24.92 after the food and nonfood products retailer said sales in the fourth-quarter ending on July 29 slipped 6.1% from a year ago to $410.7 million.

Same store sales in the quarter increased 0.6%.

Net income in the quarter plunged 19% to $6.8 million or 47 cents per diluted share from $8.4 million or 60 cents in the same quarter last year.