Red Hat Plunges on Weak Outlook, CarMax on Surprise Sales Increase

Mukesh Buch
22 Jun, 2018
New York City

BlackBerry plunged after net swung to a loss on 9% decline in revenues. CarMax surged after net and revenues soared. Park Electrochemical jumped after net more than doubled. Red Hat tumbled on weak forecast.

[R]12:35 PM New York City, New York – BlackBerry plunged after net swung to a loss on 9% decline in revenues. CarMax surged after net and revenues soared. Park Electrochemical jumped after net more than doubled. Red Hat tumbled on weak forecast.[/R]

Tollbooth Index slumped 55.49 or 0.4% to 15,315.22 but for the year-to-date soared 11.3%.

Earnings Review

BlackBerry Limited ((BB)) plunged 8.5% or 99 cents to $10.71 after Canada-based wireless handsets, software, and services provider reported revenues in the first-quarter ending in May declined 9.4% from a year ago to $213 million.

Net in the quarter swung to a loss of $60 million or 11 cents per diluted share from profit of $671 million or $1.23 in the same quarter last year.

BlackBerry forecasted fiscal 2019 total software and services growth in double-digits and total software and services revenue growth between 8% and 10% and earnings per share will be positive.

CarMax Inc ((KMX)) surged 12.8% or $9.11 to $80.16 after the used and new cars retailer said net sales in the first-quarter ending in May jumped 5.5% from a year ago to $4.8 billion.

Used unit sales at comparable stores in the quarter declined 2.3% and total wholesale unit sales soared 9.6% and total used unit sales increased 1.6%.

Net income in the quarter jumped 12.8% to $238.7 million or $1.33 per diluted share from $211.7 million or $1.13 in the same quarter last year.

Park Electrochemical Corp ((PKE)) soared 14.7% or $2.93 to $22.86 after the printed circuit materials maker stated net sales in the first-quarter ending on May 27 advanced 11.9% from a year ago to $31.1 million.

Net income in the quarter surged 128.6% to $3.2 million or 16 cents per diluted share from $1.4 million or 7 cents in the same quarter last year.

Red Hat Inc ((RHT)) tumbled 12.3% or $20.37 to $145.36 after the open-source software provider reported revenues in the first-quarter ending in May jumped 20% from a year ago to $814 million.

Net income in the quarter surged 50.7% to $113 million or 59 cents per diluted share from $75 million or 41 cents in the same quarter last year.

Red Hat said revenues in the application development and other emerging technology subscription advanced 37% to $189 million.

The software provider forecasted fiscal 2019 revenues growth between $3.38 billion to $3.41 billion and operating margin of about 16.4% and diluted earnings per share in the range of $2.36 to $2.40.

Separately, the open source solutions provider said that its Board of Directors had authorized share buyback of up to $1 billion.