Gap Sales Disappoint; HP Profit Surge, Autodesk Soars

Mukesh Buch
24 Aug, 2018
New York City

Autodesk earnings were ahead of estimates. Foot Locker tumbled. Gap plunged on weak sales at its name brand stores. HP net soared 26%.Ross Stores profit surged. VMware revenues soared 13%.

[R]12:40 PM New York City, New York – Autodesk earnings were ahead of estimates. Foot Locker tumbled. Gap plunged on weak sales at its name brand stores. HP net soared 26%.Ross Stores profit surged. VMware revenues soared 13%.[/R]

Tollbooth Index increased 99.15 or 0.6% to 16,240.44 but for the year-to-date soared 18%.

Earnings Review

Autodesk Inc ((ADSK)) surged 14.8% or $20.16 to $156.47 after the architecture, engineering, construction software developer reported total revenues in the second-quarter ending in July soared 21.9% from a year ago to $611.7 million.

Net loss in the quarter narrowed to $39.4 million or 18 cents per diluted share from $144 million or 66 cents in the same quarter last year

The software developer forecasted fiscal 2018 revenues growth between 21% and 22% or $2.49 billion to $2.51 billion and diluted loss per share in the range of 59 cents to 51 cents.

The Buckle Inc ((BKE)) declined 5.4% or $1.50 to $26.30 after the fashion retailer stated net sales in the second-quarter ending on August 4 rose 2.8% from a year ago to $201.1 million.

Comparable store sales in the quarter increased 1.4% and online sales soared 8.6% to $21.2 million.

Net income in the quarter jumped 36.5% to $15.7 million or 32 cents per diluted share from $11.5 million or 24 cents in the same quarter last year.

Foot Locker Inc ((FL)) tumbled 13.2% or $7.03 to $46.17 after the sportswear and footwear retailer said net sales in the second-quarter ending on August 4 jumped 4.8% from a year ago to $1.8 billion.

Comparable store sales in the quarter advanced 2%.

Net income in the quarter soared 72.5% to $88 million or 75 cents per diluted share from $51 million or 39 cents in the same quarter last year.

The Gap Inc ((GPS)) plunged 11% or $3.58 to $28.86 after the apparel and accessories retailer reported net sales in the second-quarter ending on August 4 soared 8% from a year ago to $4.1 billion.

Comparable store sales in the quarter increased 0.5% and sales at Gap branded stores declined 5%. Comparable sales at Old Navy Global advanced 5% and comparable sales at Banana Republic Global increased 2%.

Net income in the quarter jumped 10% to $297 million or 76 cents per diluted share from $271 million or 68 cents in the same quarter last year.

“We believe the worst is behind us,” said chief executive officer Art Peck while commenting on inventory backlog problems.

The apparel retailer reaffirmed fiscal 2018 diluted earnings per share forecast in the range of $2.55 to $2.70 and comparable sales may flat to slightly increased.

HP Inc ((HPQ)) dropped 2.9% or 71 cents to $23.93 after the computer, notebook and printers maker said net revenues in the third-quarter ending in July surged 11.5% from a year ago to $14.6 billion.

Net income in the quarter jumped 26.4% to $880 million or 54 cents per diluted share from $696 million or 41 cents in the same quarter last year.

HP forecasted fiscal 2018 diluted earnings per share forecast in the range of $2.82 to $2.85.

Intuit Inc ((INTU)) increased $1.58 to $214.03 after the accounting software developer reported revenues in the fourth-quarter ending in June surged 17% from a year ago to $988 million.

Net income in the quarter more than doubled to $49 million or 18 cents per diluted share from $24 million or 9 cents in the same quarter last year.

Intuit forecasted fiscal 2018 revenues growth in the range of 8% to 10% or $6.53 billion to $6.63 billion and operating income growth between 11% to 14% or $1.73 billion to $1.78 billion.

The payment processor estimated diluted earnings per share in the range of $5.25 to $5.35.

Ross Stores Inc ((ROST)) rose 9 cents to $95.91 after the off-price apparel and home fashion retailer said sales in the second-quarter ending on August 4 soared 9% from a year ago to $3.7 billion.

Same store sales in the quarter jumped 5%.

Net income in the quarter soared 22.7% to $389.4 million or $1.04 per diluted share from $316.5 million or 82 cents in the same quarter last year.

“We continue to forecast same store sales to grow 1% to 2% for both third and fourth quarters and earnings per share in the third quarter in the range of $0.84 to $0.88 and in the fourth-quarter between $1.02 and $1.07,” said chief executive officer Barbara Rentler.

VMware Inc ((VMW)) dropped 2.1% or $3.26 to $151.52 after the server and desktop virtualization software provider reported revenues in the second-quarter ending on August 3 surged 13% from a year ago to $2.2 billion.

Net income in the quarter jumped 58.6% to $644 million or $1.56 per diluted share from $406 million or 98 cents in the same quarter last year.