Lowe's Declines on Weak Results, Vale Net Soars on Iron Ore Prices

Mukesh Buch
28 Feb, 2018
New York City

Analog Devices reported strong profit and revenues. Express Scripts profit soared on higher customer retention rate. Lowe''s plunged after revenues and profit declined. TJX soared on strong profit and comparable sales. Vale profit soared on higher iron ore price.

[R]12:30 PM New York City, New York – Analog Devices reported strong profit and revenues. Express Scripts profit soared on higher customer retention rate. Lowe''s plunged after revenues and profit declined. TJX soared on strong profit and comparable sales. Vale profit soared on higher iron ore price.[/R]

Tollbooth Index increased 24.26 or 0.2% to 14,563.44.

Earnings Review

Analog Devices, Inc ((ADI)) fell 85 cents to $91.41 after the semiconductors maker reported revenues in the first-quarter ending in December soared 52.4% from a year ago to $1.5 billion.

Net income in the quarter jumped 23.5% to $268.2 million or 71 cents per diluted share from $217.1 million or 69 cents in the same quarter last year.

The chip maker forecasted fiscal second-quarter revenue in the range of $1.43 billion to $1.51 billion and gross margin between 68% and 68.5% and diluted earnings per share in the range of 87 cents to $1.01.

Express Scripts Holding Company ((ESRX)) slumped 2.4% or $1.90 to $76.74 after the healthcare services provider reported revenues in the fourth-quarter ending in December increased 2% from a year ago to $25.4 billion.

Net income in the quarter surged 64.3% to $2.3 billion or $4.10 per diluted share from $1.4 billion or $2.34 in the same quarter last year.

The healthcare services provider forecasted first-quarter diluted earnings per share in the range of $1.73 to $1.78 and customer retention rate to grow between 96% and 98%.

Lowe''s Companies, Inc ((LOW)) plunged 6.3% or $6.03 to $89.89 after the home improvement retailer said net sales in the fourth-quarter ending in December decreased 1.9% from a year ago to $15.5 billion.

Comparable store sales in the quarter advanced 4.1% and comparable store sales in the U.S. home improvement business increased 3.7%.

Net income in the quarter tumbled 16.4% to $554 million or 67 cent per diluted share from $663 million or 74 cent in the same quarter last year.

In fiscal 2018, Lowe''s estimated total sales to increase 4% and comparable sales to jump 3.5% and diluted earnings per share in the range of $5.40 to $5.50.

The TJX Companies, Inc ((TJX)) soared 7.8% or $6.03 to $83.34 after the apparel retailer reported net sales in the fourth-quarter ending in December soared 16% from a year ago to $10.9 billion.

Comparable store sales in the quarter jumped 4%.

Net income in the quarter surged 29.4% to $877.3 million or $1.37 per diluted share from $677.9 million or $1.03 in the same quarter last year.

The retailer forecasted fiscal 2019 diluted earnings per share in the range of $4.73 to $4.83.

Vale SA ((VALE)) dropped 2.1% or 31 cents to $14.19 after Brazil-based iron ore and iron ore pellets producer reported revenues in the year ending in December jumped 23.6% from a year ago to $33.9 billion.

Net income in the quarter soared 38.4% to $5.5 million or $1.05 per diluted share from $3.9 billion or 77 cents in the same quarter last year.

Vale said as of December 30, net debt declined to $18.14 billion from $25.04 billion in a year ago period and assets sales set to reduce it further in this year.

“The increase in sales revenues was mainly due to higher realized prices of ferrous minerals,” in a statement said.