FedEx Lifts Outlook; Oracle Misses Sales Estimates, AutoZone Net Falls

Mukesh Buch
18 Sep, 2018
New York City

AutoZone net declined on weak revenues. Cracker Barrel net and sales jumped. FedEx missed earnings estimates but the delivery company lifted outlook. Oracle net jumped 6% on weak revenues.

[R]12:40 PM New York City, New York – AutoZone net declined on weak revenues. Cracker Barrel net and sales jumped. FedEx missed earnings estimates but the delivery company lifted outlook. Oracle net jumped 6% on weak revenues.[/R]

Tollbooth Index advanced 49.44 or 0.3% to 16,428.89 but for the year-to-date soared 19.4%.

Earnings Review

AutoZone Inc ((AZO)) dropped 2.6% or $19.54 to $727.98 after the automobile parts and accessories retailer reported net sales in the fourth-quarter ending on August 25 increased 1.3% from a year ago to $3.6 billion.

Domestic same store sales in the quarter increased 2.2%.

Net income in the quarter declined 7.7% to $400.3 million or $15.02 per diluted share from $433.9 million or $15.27 in the same quarter last year.

In a conference call, the retailer announced a new next day home delivery program for up to 100,000 different parts and accessories.

Apogee Enterprises, Inc ((APOG)) plunged 11.2% or $5.41 to $42.81 after the glass and metal products developer said net sales in the second-quarter ending on September 1 jumped 5% from a year ago to $362.1 million.

Net income in the quarter soared 18% to $20.5 million or 72 cents per diluted share from $17.4 million or 60 cents in the same quarter last year.

Apogee lowered fiscal 2019 revenues growth forecast to between 8% and 10% from the earlier estimate of 10% and diluted earnings per share between $3 and $3.20 from the earlier estimate of $3.35 to $3.55.

BorgWarner Inc ((BWA)) slumped 4.3% or $1.91 to $42.24 after the auto-parts supplier forecasted fiscal 2018 net sales between $10.49 billion and $10.58 billion and diluted earnings per share in the range of $4.35 to $4.40.

The auto parts maker issued softer outlook on the weak industry volumes primarily in China, with additional short-term challenges in Europe.

The auto-parts supplier reaffirmed fiscal 2023 revenue of about $14 billion and said operating margin is estimated to to improve to less than 13%.

Cracker Barrel Old Country Store, Inc ((CBRL)) declined 4.7% or $7.06 to $143.69 after the restaurants operator said total revenues in the fourth-quarter ending on August 3 soared 9.1% from a year ago to $810.9 million.

Comparable restaurant sales in the quarter fell 0.4% and comparable store retail sales increased 1.3%.

Net income in the quarter jumped 14% to $61.4 million or $2.55 per diluted share from $53.9 million or $2.23 in the same quarter last year.

The restaurants operator forecasted fiscal 2019 total revenues of about $3.04 billion, comparable restaurant sales growth in the range of flat to 1%.

The restaurant chain said comparable store retail sales growth is estimated in the range of flat to 1% and diluted earnings per share in the range of $8.95 and $9.10.

FedEx Corporation ((FDX)) declined 4.6% or $11.73 to $244.01 after the package delivery services provider reported revenues in the first-quarter ending in August surged 11.8% from a year ago to $17.1 billion.

Net income in the quarter soared 40% to $835 million or $3.10 per diluted share from $933 million or $3.46 in the same quarter last year.

FedEx forecasted fiscal 2019 revenues growth of 9% and operating margin of 7.9% and lifted diluted earnings per share forecast to between $15.85 and $16.45 from the earlier estimate of $15.65 to $16.25.

General Mills Inc ((GIS)) plummeted 7.6% or $3.65 to $44.12 after the branded consumer foods, ready-to-eat cereals and convenient meals maker said revenues in the first-quarter ending on August 26 advanced 9% from a year ago to $4.1 billion.

Net income in the quarter dropped 3.1% to $392.3 million or 65 cents per diluted share from $404.7 million or 69 cents in the same quarter last year.

General Mills reaffirmed fiscal 2019 net sales forecast in the range of flat and 1% growth and diluted earnings per share between flat and 3% decline from $3.11 in the same period a year ago.

Oracle Corporation ((ORCL)) slipped 1.1% or 53 cents to $48.66 after the enterprise software provider reported revenues in the first-quarter ending in August rose 1% from a year ago to $9.2 billion.

Net income in the quarter jumped 6% to $2.3 billion or 57 cents per diluted share from $2.1 billion or 50 cents in the same quarter last year.

Oracle said revenues in the cloud services and license support plus cloud license and on-premise license revenues grew 2% to $7.5 billion.