Campbell Pressured to Restructure, Dollar Tree Plunges 11%

Mukesh Buch
30 Aug, 2018
New York City

Ciena net plunged but revenues surged. Campbell Soup beat earnings estimates. Dollar General reaffirmed earnings outlook. Dollar Tree plunged after weak earnings estimates. PVH reported strong results. Salesforce net surged.

[R]12:55 PM New York City, New York – Ciena net plunged but revenues surged. Campbell Soup beat earnings estimates. Dollar General reaffirmed earnings outlook. Dollar Tree plunged after weak earnings estimates. PVH reported strong results. Salesforce net surged.[/R]

Tollbooth Index slipped 46.02 or 0.3% to 16,491.25 but for the year-to-date soared 19.8%.

Earnings Review

Abercrombie & Fitch Co ((ANF)) tumbled 14.1% or $3.85 to $23.37 after the specialty retailer said net sales in the second-quarter ending on August 4 jumped 8% from a year ago to $842.4 million.

Comparable sales in the quarter advanced 3%.

Net loss in the quarter narrowed to $3.9 million or 6 cents per diluted share from $15.5 million or 23 cents in the same quarter last year.

The retailer forecasted fiscal 2018 net sales growth in the range of 2% to 4% and comparable sales in the range of 2% to 4%.

Ciena Corporation ((CIEN)) surged 14.2% or $3.89 to $31.20 after the telecom equipment provider reported total revenues in the third-quarter ending in July surged 12.4% from a year ago to $818.8 million.

Net income in the quarter plunged 15.3% to $50.8 million or 34 cents per diluted share from $60 million or 39 cents in the same quarter last year.

Campbell Soup Co ((CPB)) fell 1.5% or 59 cents to $39.41 after the convenience food products and soup maker said net sales in the fourth-quarter ending on July 29 soared 33% from a year ago to $2.2 billion.

Net income in the quarter tumbled 70.4% to $94 million or 31 cents per diluted share from $318 million or $1.04 in the same quarter last year.

Campbell forecasted fiscal 2019 earnings per share may below average estimate as costs continue to increases and overall cost savings estimated of about $945 million by fiscal 2022.

Separately today, the soup maker said its plan to divest its international and fresh refrigerated-foods units after pressure from hedge fund investors and activist investor Dan Loeb.

The hedge fund manager has been pressuring the management to restructure the company after sales declined for the last three-years.

""Full slate of strategic options, including optimize the portfolio, divesting businesses, splitting the company and pursuing sale,"" said interim chief executive officer Keith McLoughlin.

Dollar General Corp ((DG)) fell 55 cents to $106.15 after the discount retailer reported net sales in the second-quarter ending on August 4 jumped 10.6% from a year ago to $6.4 billion.

Same store sales in the quarter jumped 3.7%.

Net income in the quarter soared 37.9% to $407.2 million or $1.52 per diluted share from $294.8 million or $1.08 in the same quarter last year.

The discount retailer forecasted fiscal 2018 net sales growth between 9% and 9.3% and same store sales growth to increase in mid-to-high two percent range and the company reaffirmed diluted earnings per share between $5.95 and $6.15.

Dollar Tree Inc ((DLTR)) plunged 12% or $11.36 to $83.10 after the discount stores operator said net sales in the second-quarter ending on August 4 soared 4.6% from a year ago to $5.5 billion.

Same store sales in the Dollar Tree banner advanced 3.7% and same store sales in the Family Dollar banner were flat at 0.0%.

Net income in the quarter jumped 17.2% to $273.9 million or $1.15 per diluted share from $233.8 million or 98 cents in the same quarter last year.

The discount stores operator lifted fiscal 2018 net sales forecast in the range of $22.97 billion to $22.75 billion from the earlier estimate of $22.73 billion to $23.05 billion and same store sales to increase in low single-digit increase.

The company reaffirmed diluted earnings per share in the range of $4.85 to $5.05 from the earlier estimate of $4.80 to $5.10.

Guess Inc ((GES)) soared 10.1% or $2.31 to $25.25 after the apparel and accessories retailer said revenues in the second-quarter ending on August 4 advanced 14% from a year ago to $645.9 million.

Net income in the quarter surged 67.8% to $25.5 million or 31 cents per diluted share from $15.2 million or 18 cents in the same quarter last year.

Guess forecasted fiscal 2018 net revenue between 9% and 9.5% and operating margin between 4% to 4.3% and diluted earnings per share between 85 cents and 94 cents.

PVH Corporation ((PVH)) declined 7.9% or $12.49 to $144.18 after the lifestyle brands designer said revenues in the second-quarter ending on August 5 surged 13% from a year ago to $2.3 billion.

Net income in the quarter jumped 38% to $165.2 million or $2.12 per diluted share from $119.7 million or $1.52 in the same quarter last year.

Salesforce.com Inc ((CRM)) dropped 2.4% or $3.64 to $151.16 after the cloud computing services provider reported revenues in the second-quarter ending in July soared 27% from a year ago to $3.3 billion.

Net income in the quarter jumped to $299 million or 39 cents per diluted share from $46 million or 6 cents in the same quarter last year.

Salesforce forecasted fiscal 2018 revenues between $13.13 billion to $13.18 billion, growth of 25% from a year ago and diluted earnings per share in the range of 97 cents to 99 cents.