GE Plunges on Outlook Worries, Home Depot Lifts Estimates

Mukesh Buch
14 Nov, 2017
New York City

Advance Auto Parts surges on upbeat estimate. Aramark declined. Dicks Sporting Goods warns on margins but lifted fiscal outlook. GE lowered cash flow and dividend estimate. Home Depot profit jumped and lifted full-year forecasts. TJX net jumped.

[R]1:45 PM New York – Advance Auto Parts surges on upbeat estimate. Aramark declined. Dicks Sporting Goods warns on margins but lifted fiscal outlook. GE lowered cash flow and dividend estimate. Home Depot profit jumped and lifted full-year forecasts. TJX net jumped.[/R]

Tollbooth Index edged up 0.07 to 13,265.74.

Earnings Review

Advance Auto Parts, Inc ((AAP)) surged 20% or $15.98 to $98.07 after the automobile parts retailer reported revenues in the third-quarter ending on October declined 3% from a year ago to $2.2 billion.

Comparable store sales in the quarter declined 3.4%.

Net income in the quarter plunged 15.6% to $96 million or $1.30 per diluted share from $113.8 million or $1.53 in the same quarter last year.

In the fiscal 2017, Advance Auto Parts plans to open 60 to 65 new stores but comparable sales growth is estimated to decline between 1% and 3%.

Aramark ((ARMK)) declined 4.7% or $2.03 to $40.82 after the food and uniform services provider said revenues in the fourth-quarter ending in September jumped 3% from a year ago to $3.7 billion.

Net income in the quarter surged to $88.5 million or 55 cents per diluted share from $7 million or 5 cents in the same quarter last year.

Aramark forecasted fiscal 2017 diluted earnings per share in the range of $2.10 to $2.20, the fifth year in a row of double-digit adjusted earnings per share growth.

Dicks Sporting Goods Inc ((DKS)) plunged 6.8% or $1.78 to $24.53 after the sporting goods retailer said net sales in the fourth-quarter ending in September soared 7.4% from a year ago to $1.9 billion.

Same store sales in the quarter decreased 0.9%.

Net income in the quarter tumbled 24.5% to $36.9 million or 35 cents per diluted share from $48.9 million or 44 cents in the same quarter last year.

The sporting goods retailer lifted fiscal 2018 diluted earnings per share forecast in the range of $2.95 to 3.07 from the reported earnings per diluted share of $2.56 in fiscal 2017.

General Electric Company ((GE)) plunged 7.2% or $1.36 to $17.67 after the industrial conglomerate said it will reduce dividend by 50% as part of corporate restructuring.

""The GE of the future is going to be a more focused industrial company,"" and ""It will leverage a lot of game-changing capabilities,"" said chief executive officer John Flannery.

The conglomerate forecasted fiscal 2017 earnings per share in the range of $1 to $1.07 and free cash flow estimate was significantly reduced to between $6 billion and $7 billion.

Home Depot Inc ((HD)) gained $1 to $166.72 after the home improvement retailer reported sales in the third-quarter ending in September jumped 8.1% from a year ago to $25 billion.

Comparable store sales in the quarter surged 7.9% and comparable store sales in the U.S. soared 7.7%.

Net income in the quarter surged 10% to $2.2 billion or $1.84 per diluted share from $2 billion or $1.60 in the same quarter last year.

Home Depot lifted fiscal 2017 sales growth estimate to about 6.3% and comparable store sales to about 6.5% and diluted earnings per share to increase about 14% from $7.36 reported in fiscal 2016.

TJX Companies Inc ((TJX)) plummeted 5.1% or $3.58 to $67.12 after the off-price apparel and home fashions retailer said revenues in the third-quarter ending in September advanced 6% from a year ago to $8.8 billion.

Comparable store sales in the third were flat.

Net income in the quarter soared 16.7% to $641.4 million or $1 per diluted share from $549.8 million or 83 cents in the same quarter last year.

In the fourth quarter, the retailer forecasted fiscal 2018 diluted earnings per share in the range of $1.25 to $1.27, a 21% to 23% increase.

In fiscal 2017, the TJX estimated diluted earnings per share between $3.91 and $3.93, representing growth of 13% to 14%.