Accenture Drops on Margin Worries, Carnival Lifted Outlook

Mukesh Buch
22 Mar, 2018
New York City

Accenture declined after operating margin declined. Carnival lifted fiscal outlook. ConAgra net jumped despite higher costs. Darden soared and reaffirmed fiscal outlook. G-III tumbled despite net loss narrowed. Guess surged on strong profit.

[R]1:05 PM New York City, New York – Accenture declined after operating margin declined. Carnival lifted fiscal outlook. ConAgra net jumped despite higher costs. Darden soared and reaffirmed fiscal outlook. G-III tumbled despite net loss narrowed. Guess surged on strong profit.[/R]

Accenture Plc ((ACN)) declined 5.9% or $9.59 to $152.44 after the Ireland-based technology and outsourcing services provider reported revenues in the second-quarter ending in February soared 15% from a year ago to $9.6 billion.

Net income in the quarter jumped 3% to $863.7 million or $1.37 per diluted share from $838.8 million or $1.37 in the same quarter last year.

Accenture forecasted fiscal 2018 revenues growth between 7% and 9% and diluted earnings per share in the range of $6.61 to $6.70 but lowered operating margin to 14.8% and lifted free cash flow forecast to between $4.6 billion and $4.9 billion from the earlier estimate of $4.4 billion to $4.7 billion.

The outsourcing services provider said consulting new bookings surged 55% to $5.7 billion and outsourcing new bookings jumped 45% to $4.6 billion.

Carnival Corporation ((CCL)) rose 10 cents to $67.16 after the cruise operator said revenues in the first-quarter ending in February jumped 11.6% from a year ago to $4.2 billion.

Net income in the quarter soared 11.1% to $391 million or 54 cents per diluted share from $352 million or 48 cents in the same quarter last year.

The cruise operator lifted fiscal 2018 earnings per share forecast in the range of $4.20 to $4.40 from the December estimate of $4 to $4.30.

ConAgra Brands Inc ((CAG)) advanced 2.1% or 75 cents to $36.09 after the branded consumer foods reported revenues in the third-quarter ending on February 25 rose 0.7% from a year ago to $1.99 billion.

Net income in the quarter more than doubled to $363.7 million or 90 cents per diluted share from $180.2 million or 41 cents in the same quarter last year.

Darden Restaurants Inc ((DRI)) declined 7.5% or $7.03 to $86.28 after the specialty restaurant operator said total sales in the third-quarter ending on February 25 surged 13.3% from a year ago to $2.1 billion.

Blended same-restaurant sales from Darden''s legacy brands in the quarter increased 2% and same-restaurant sales at Olive Garden advanced 2.2% but same-restaurant sales at Cheddar''s Scratch Kitchen dropped 2.2%.

Net income in the quarter surged 31.5% to $217.8 million or $1.73 per diluted share from $165.6 million or $1.32 in the same quarter last year.

The restaurant operator reaffirmed fiscal 2018 total sales growth forecast of 13% and same-restaurant sales growth of 2% but lifted diluted earnings per share between $4.75 and $4.80 from the earlier estimate of $4.70 to $4.78.

G-III Apparel Group LTD ((GIII)) tumbled 13.8% or $5.19 to $32.32 after the outerwear, sportswear and swimwear makers stated net sales in the fourth-quarter ending in December jumped 18.5% from a year ago to $714.9 million.

Net loss in the quarter narrowed to $0.5 million or 1 cent per diluted share from $20.1 million or 42 cents in the same quarter last year.

In fiscal 2019, G-III forecasted net sales of $2.94 billion and net income between $97 million and $102 million and diluted earnings per share in the range of $1.90 and $2 and operating profit to jump between $218 million and $227 million from $201.3 million in fiscal 2018.

Guess? Inc ((GES)) surged 29.4% or $4.56 to $20.08 after the apparel and accessories retailer said revenues in the fourth-quarter ending on February 3 soared 17.5% from a year ago to $792 million.

Net income in the quarter surged 44.4% to $22.1 million or 69 cents per diluted share from $15.3 million or 48 cents in the same quarter last year.

The retailer said revenues in domestic retail business dropped 6.1%, in domestic wholesale business increased 3.8%, in Europe surged 39.7%, in Asia soared 40.2% and licensing revenues jumped 11.4%.

Guess forecasted fiscal 2019 net revenue to increase between 7% and 8% but operating margin to jump between 4% and 4.5% diluted earnings per share in the range of 86 cents to 98 cents.