Nike Surges on International Market Growth; Greenbrier, KB Home Soar

Mukesh Buch
29 Jun, 2018
New York City

Constellation Brands lowered fiscal 2019 outlook. Greenbrier reaffirmed fiscal outlook. KB Home reported strong second-quarter results. NIKE reported strong double-digit revenue growth in international markets. SYNNEX net surged.

[R]12:55 PM New York City, New York – Constellation Brands lowered fiscal 2019 outlook. Greenbrier reaffirmed fiscal outlook. KB Home reported strong second-quarter results. NIKE reported strong double-digit revenue growth in international markets. SYNNEX net surged.[/R]

Tollbooth Index jumped 165.91 or 1.1% to 15,079.74 but for the year-to-date soared 9.6%.

Earnings Review

Constellation Brands Inc ((STZ)) plunged 5.8% or $13.45 to $218.88 after the beer, wine, and spirits producer reported revenues in the first-quarter ending in May jumped 6.2% from a year ago to $2 billion.

Net income in the quarter surged 86.6% to $743.8 million or $3.77 per diluted share from $398.5 million or $1.98 in the same quarter last year.

The alcoholic beverage maker lowered fiscal 2019 diluted earnings forecast to between $10.93 and $11.23 from the earlier estimate of $9.40 to $9.70 and operating cash flow to between $2.35 billion and $2.55 billion and capital expenditures in the range of $1.15 billion to $1.25 billion.

The Greenbrier Companies, Inc ((GBX)) soared 10.7% or $5 to $51.90 after the railroad freight car equipment maker said revenues in the third-quarter ending in May soared 46% from a year ago to $641.4 million.

Net income in the quarter rose 0.4% to $33 million or $1.01 per diluted share from $32.8 million or $1.03 in the same quarter last year.

Greenbrier forecasted fiscal 2018 revenues of about $2.5 billion and diluted earnings per share of about $5 and deliveries between 20,000 units and 21,000 units, including its Brazil operation.

KB Home ((KBH)) jumped 7.2% or $1.84 to $27.22 after the home builder stated total revenues in the second-quarter ending in May surged 10% from a year ago to $1.1 billion.

Net income in the quarter soared 80% to $57.3 million or 57 cents per diluted share from $31.8 million or 33 cents in the same quarter last year.

The home builder said total deliveries in the quarter jumped 5% to 2,717 homes and average selling price advanced 4% to $401,800 and net orders increased 3% to 3,532 units but net order value decreased 2% to $1.36 billion.

Nike Inc ((NKE)) surged 11.8% or $8.48 to $80.18 after the athletic footwear and apparel designer and wholesaler reported revenues in the fourth-quarter ending in May advanced 13% from a year ago to $9.8 billion.

Net income in the quarter jumped 13% to $1.14 billion or 69 cents per diluted share from $1.01 billion or 60 cents in the same quarter last year.

Nike announced new four-year $15 billion share buyback program and anticipated that the current $12 billion share repurchase program will be completed within fiscal 2019 and new program will commence upon the completion of the current program.

SYNNEX Corporation ((SNX)) declined 8.7% or $9.32 to $97.42 after the outsourcing services provider reported revenues in the second-quarter ending in May soared 26.3% from a year ago to $4.9 billion.

Net income in the quarter surged 28.1% to $93.7 million or $2.34 per diluted share from $73.1 million or $1.83 in the same quarter last year.

SYNNEX forecasted fiscal 2018 revenues between $4.8 billion to $5 billion and net income in the range of $77.9 million to $81.6 million and diluted earnings per share in the range of$1.95 to $2.04.