Beazer Swings to Profit on Higher Home Prices, Target Disappoints

Mukesh Buch
15 Nov, 2017
New York City

Beazer Homes net swung to profit. Children''s Place beats profit estimate and lifted fiscal 2017 outlook. Meritor revenues surged on higher production and new business wins. Sally Beauty blamed profit decline on natural catastrophes. Target holiday estimate disappoints Wall Street.

[R]11:25 AM New York – Beazer Homes net swung to profit. Children''s Place beats profit estimate and lifted fiscal 2017 outlook. Meritor revenues surged on higher production and new business wins. Sally Beauty blamed profit decline on natural catastrophes. Target holiday estimate disappoints Wall Street.[/R]

Tollbooth Index slumped 46.01 or 0.4% to 13,197.46.

Earnings Review

Beazer Homes USA, Inc ((BZH)) advanced 3% or 65 cents to $22.20 after the diversified homebuilder said revenues in the fourth-quarter ending in September jumped 7.3% from a year ago to $665.5 million.

Net in the quarter swung to profit $33.7 million or $1.03 per diluted share from a loss of $0.9 million or 3 cents in the same quarter last year.

The homebuilder said new home deliveries in the quarter increased 2.6% to 1,904 units and average selling price of $349,500 while unit order in the quarter dropped 2.3% to 1,315 units.

The Children’s Place Inc ((PLCE)) jumped 5.3% or $6 to $119.90 after the specialty apparel retailer reported net sales in the third-quarter ending on October 28 increased 3.4% from a year ago to $490 million.

Comparable store sales in the quarter jumped 5.1%.

Net income in the quarter fell 0.2% to $44.1 million or $2.44 per diluted share from $44.2 million or $2.36 in the same quarter last year.

The retailer lifted fiscal 2017 diluted earnings per share growth estimate in the range of $7.46 to $7.51 from the earlier estimate of $7.23 to $7.33.

Meritor Inc ((MTOR)) advanced 3.4% or 87 cents to $26.65 after the automobile parts maker said sales in the fourth-quarter ending in September soared 27% from a year ago to $922 million.

Net income in the quarter declined 49.6% to $239 million or $2.63 per diluted share from $444 million or $5.34 in the same quarter last year.

Meritor forecasted revenues growth in fiscal 2018 in the range of $3.6 billion to $3.7 billion and net income between $160 million to $180 million and diluted earnings per share of $1.75 to $1.95.

Sally Beauty Holdings, Inc ((SBH)) plunged 7.2% or $1.12 to $14.55 after the specialty beauty retailer reported net sales in the fourth-quarter ending in September slid 0.2% from a year ago to $974.2 million.

Same store sales in the quarter decreased 1.4%.

Net income in the quarter tumbled 32.1% to $35.7 million or 27 cents per diluted share from $52.6 million or 36 cents in the same quarter last year.

Spire Inc ((SR)) gained 65 cents to $79.45 after the investor of gas utility stated revenues in the fourth-quarter ending in September slumped 7.3% from a year ago to $258.7 million.

Net loss in the quarter narrowed to $13.3 million or 28 cents per diluted share from $14.2 million or 31 cents in the same quarter last year.

Stein Mart, Inc ((SMRT)) soared 6.2% or 6 cents to $1.08 ahead of third-quarter results release after market close.

Target Corporation ((TGT)) tumbled 8.5% or $5.16 to $54.98 after the discount stores reported sales in the third-quarter ending on October 28 rose 1.4% from a year ago to $16.7 billion.

Comparable store sales in the quarter increased 0.9%.

Net income in the quarter tumbled 21% to $480 million or 88 cents per diluted share from $608 million or $1.06 in the same quarter last year.

The retailer forecasted fourth-quarter 2017 comparable sales growth between flat to 2% and diluted earnings per share in the range of $4.40 to $4.60 from the earlier estimate of $4.34 to $4.54.

""While we expect the fourth-quarter environment to be highly competitive, we are very confident in our holiday season plans,"" said chief executive officer Brian Cornell.