Conagra Net Beats Estimates; Paychex Shines, CarMax Growth Slows

Mukesh Buch
21 Dec, 2017
New York City

Apogee tumbled after lowering profit estimate. CarMax revenues jumped but the growth slowed mirroring industry trend. Conagra sales and net beat estimates driven by hurricane fueled demand. Lindsay net surged. Paychex beat profit and revenue estimate.

[R]11:45 AM New York City, New York – Apogee tumbled after lowering profit estimate. CarMax revenues jumped but the growth slowed mirroring industry trend. Conagra sales and net beat estimates driven by hurricane fueled demand. Lindsay net surged. Paychex beat profit and revenue estimate.[/R]

Tollbooth Index rose 17.12 to 13,868.44.

Earnings Review

Apogee Enterprises Inc ((APOG)) tumbled 17.7% or $8.98 to $42.03 after the glass and acrylic products developer reported revenues in the third-quarter ending on December 2 surged 30% from a year ago to $356.5 million.

Net income in the quarter jumped 5% to $23.6 million or 82 cents per diluted share from $22.6 million or 78 cents in the same quarter last year.

Apogee lowered fiscal revenues growth forecast to about 20% from the earlier estimate of 24% to 26% and lowered diluted earnings per share in the range of $2.58 to $2.68 from earlier estimate of $3.05 to $3.25.

CarMax, Inc ((KMX)) slumped 3.6% or $2.46 to $66.05 after the car dealer said net sales in the third-quarter ending in November jumped 11% from a year ago to $4.1 billion.

Used vehicle sales at comparable stores in the quarter advanced 2.7% and total used unit sales rose 8.2% and total wholesale unit sales increased 9.1%.

Net income in the quarter soared 8.9% to $148.8 million or 81 cents per diluted share from $136.6 million or 72 cents in the same quarter last year.

Conagra Brands, Inc., formerly ConAgra Foods, Inc ((CAG)) fell 33 cents to $37.77 after the packaged food maker reported net sales in the second-quarter ending on November 26 advanced 4.1% from a year ago to $2.2 billion.

Net income in the quarter surged 83.1% to $223.5 million or 55 cents per diluted share from $122.1 million or 28 cents in the same quarter last year.

Separately, today Conagra agreed to acquire the Sandwich Bros. of Wisconsin business without disclose of financial terms.

The transaction is expected to close in early 2018.

The Finish Line, Inc ((FINL)) soared 9% or $1.05 to $12.74 after the specialty retailer said net sales in the second-quarter ending on November 25 rose 1.8% from a year ago to $378.5 million.

Comparable store sales in the quarter increased 0.8%.

Net loss in the quarter narrowed to $12.9 million or 32 cents per diluted share from $40.4 million or $1 per share in the same quarter last year.

In fiscal 2018, the retailer forecasted comparable sales to decrease between 2% and 3% but lifted diluted earnings per share to increase to the range of 59 cents to 67 cents from the earlier estimate of 50 cents to 60 cents.

Lindsay Corporation ((LNN)) dropped 3% or $2.79 to $89.13 after the agricultural machinery provider stated revenues in the first-quarter ending in November jumped 13% from a year ago to $124.5 million.

Net income in the quarter soared to $3.2 million or 30 cents per diluted share from $0.9 million or 8 cents in the same quarter last year.

Paychex, Inc ((PAYX)) slipped 2.7% or $1.85 to $67.35 after the outsourcing services provider reported total revenues in the first-quarter ending in November soared 7% from a year ago to $826.5 million.

Net income in the quarter jumped 7% to $217 million or 60 cents per diluted share from $202.1 million or 56 cents in the same quarter last year.