HP, HP Enterprise Results Disappointed, Rockwell Rejects Emerson Offer

Mukesh Buch
22 Nov, 2017
New York City

Copart net declined but revenues jumped. Deere rebound on strong results. Guess declines after net swung to a loss. HP results disappointed. HP Enterprise fell after results failed to impress investors. Rockwell rejected unsolicited proposal. Salesforce net swung to profit.

[R]11:45 AM New York – Copart net declined but revenues jumped. Deere rebound on strong results. Guess declines after net swung to a loss. HP results disappointed. HP Enterprise fell after results failed to impress investors. Rockwell rejected unsolicited proposal. Salesforce net swung to profit.[/R]

Tollbooth Index increased 15.49 to 13,461.94.

Earnings Review

Copart, Inc ((CPRT)) surged 12.2% or $4.11 to $40.81 after the online car dealer said revenues in the first-quarter ending in October jumped 21.2% from a year ago to $419.2 million.

Net income in the quarter declined 53.7% to $77.5 million or 32 cents per diluted share from $167.3 million or 70 cents in the same quarter last year.

The car dealer said operating results were adversely affected by abnormal costs of $35.8 million incurred by Hurricane Harvey.

Deere & Company ((DE)) jumped 2.4% or $3.31 to $142.69 after the agriculture, turf, construction equipment maker reported net sales in the fourth-quarter ending on October 29 soared 23% from a year ago to $8.5 billion.

Net income in the quarter surged 78.9% to $510.3 million or $1.57 per diluted share from $285.3 million or 90 cents in the same quarter last year.

The agriculture equipment maker forecasted fiscal 2018 equipment sales to jump 22% and revenues to increase about 19% and net income of about $2.6 billion.

Guess?, Inc ((GES)) tumbled 13.2% or $2.37 to $15.58 after the lifestyle apparel and accessories retailer stated revenues in the third-quarter ending on October 28 rose 3.3% from a year ago to $554.1 million.

Net in the quarter swung to a loss of $2.9 million or 4 cents per diluted share from profit of $9.1 million or 11 cents in the same quarter last year.

HP Inc ((HPQ)) plunged 6.2% or $1.40 to $21.20 after the technologies and software services provider said revenues in the fourth-quarter ending on October 29 jumped 11.2% from a year ago to $13.9 billion.

Net income in the quarter soared 34.1% to $660 million or 39 cents per diluted share from $492 million or 28 cents in the same quarter last year.

HP forecasted fiscal 2018 diluted earnings per share in the range of $1.70 to $1.80.

Hewlett Packard Enterprise Co ((HPE)) declined 7.8% or $1.11 to $13.01 after the technology solutions provider reported revenues in the fourth-quarter ending on October 29 advanced 4.6% from a year ago to $7.7 billion.

Net income in the quarter jumped 73.5% to $524 million or 32 cents per diluted share from $302 million or 18 cents in the same quarter last year.

Hewlett Packard estimated first-quarter 2018 diluted earnings per share in the range of 1 cent to 5 cents.

Rockwell Automation ((ROK)) decreased $1.74 to $191.29 after the industrial automation power provider today announced that its Board of Directors had unanimously rejected Emerson’s unsolicited $29 billion acquisition proposal.

The management said proposal undervalues Rockwell Automation and its prospects and is not in the best interests of its shareowners.

“The Rockwell Automation Board and management team are confident in the Company, our strategic direction, and our ability to continue delivering exceptional shareowner returns,” said president and chief executive officer Blake D. Moret.

Salesforce.Com Inc ((CRM)) slumped 2.2% or $2.39 to $106.41 after the cloud enterprise software provider reported total revenues in the third-quarter ending in October jumped 25% from a year ago to $2.7 billion.

Net in the quarter swung to profit $51.4 million or 7 cents per diluted share from a loss of $37.3 million or 5 cents in the same quarter last year.

Fiscal 2018 revenues are estimated to jump 24% or in the range of $10.43 billion to $10.44 billion and diluted earnings per share in the range of 12 cents to 13 cents.

Fiscal 2019 are revenues estimated to soar between 19% and 20% or in the range of $12.45 billion to $12.50.