Hewlett Packard Revises Outlook; Intuit and Ralph Lauren Advance

Mukesh Buch
23 May, 2018
New York City

Hewlett Packard reported strong second-quarter results. Intuit earnings beat estimates. Tiffany reported better-than-expected first-quarter results. Target declined after first-quarter earnings missed expectations. Urban Outfitters net surged 245%.

[R]12:25 PM New York City, New York – Hewlett Packard reported strong second-quarter results. Intuit earnings beat estimates. Tiffany reported better-than-expected first-quarter results. Target declined after first-quarter earnings missed expectations. Urban Outfitters net surged 245%.[/R]

Tollbooth Index edged up 10.57 to 15,305.12 but for the year-to-date jumped 11.1%.

Earnings Review

Hewlett Packard Enterprise Company ((HPE)) plunged 9.7% or $1.69 to $15.73 after the technology services provider reported revenues in the second-quarter ending in April soared 10% from a year ago to $7.5 billion.

Net in the quarter swung to profit $0.9 billion or 54 cents per diluted share from a loss of $0.5 billion or 29 cents in the same quarter last year.

Hewlett Packard Enterprise forecasted fiscal 2018 diluted earnings per share in the range of $1.70 to $1.80, primarily related to transformation costs and the amortization of intangible assets, offset by the impact of U.S. tax reform.

Intuit Inc ((INTU)) gained 1.3% or $2.48 to $193.02 after the business software developer said total revenues in the third-quarter ending in April surged 15% from a year ago to $2.9 billion.

Net income in the quarter soared 24.5% to $1.2 billion or $4.59 per diluted share from $964 million or $3.70 in the same quarter last year.

The software developer forecasted fiscal 2018 revenue growth to jump between 14% to 15% or $5.92 billion to $5.94 billion and diluted earnings per share to soar between 21% and 22% or in the range of $4.50 to $4.52.

Ralph Lauren Corporation ((RL)) surged 14.4% or $16.84 to $133.45 after the department stores operator said net revenues in the fourth-quarter ending in March dropped 2.5% from a year ago to $1.5 billion.

Net in the quarter swung to profit $41 million or 50 cents per diluted share from a loss of $204 million or $2.48 in the same quarter last year.

The specialty retailer forecasted fiscal 2019 revenues growth to decrease low single-digits and operating margin to slightly increase.

Tiffany & Co ((TIF)) soared 18% or $18.43 to $120.67 after the diamond jewelry retailer reported revenues in the first-quarter ending in April soared 15% from a year ago to $1 billion.

Comparable store sales in the quarter surged 10%.

Net income in the quarter jumped 53% to $142.3 million or $1.14 per diluted share from $92.9 million or 74 cents in the same quarter last year.

Tiffany’s board of directors approved a new $1 billion share repurchase program.

The jewelry maker forecasted fiscal 2018 diluted earnings per share in the range of $4.50 to $4.70.

Target Corporation ((TGT)) declined 5.5% or $4.13 to $71.34 after the discount retailer said sales in the first-quarter ending on May 5 advanced 3.5% from a year ago to $16.6 billion.

Comparable store sales in the quarter advanced 3%.

Net income in the quarter jumped 5.9% to $718 million or $1.33 per diluted share from $678 million or $1.22 in the same quarter last year.

Target reaffirmed fiscal 2018 comparable sales estimate to low-single digit increase and diluted earnings per share in the range of $5.15 to $5.45.

Urban Outfitters Inc ((URBN)) dropped 1.1% or 44 cents to $40.77 after the lifestyle specialty retailer stated net sales in the first-quarter ending in April soared 12.4% from a year ago to $856 million.

Comparable store sales in the quarter jumped 10%.

Net income in the quarter soared to $41.3 million or 38 cents per diluted share from $11 million or 1 cent in the same quarter last year.