CarMax, Cintas, KB Home Ease; Nike Trims Expectations on Stronger Dollar

Mukesh Buch
26 Sep, 2018
New York City

Actuant industrial conglomerate reaffirmed fiscal outlook. AAR government and defense segment sales surged. CarMax beats expectations.Cintas earnings were ahead of expectations. KB Home net soared. Nike said stronger dollar will affect earnings growth.

[R]11:55 AM New York City, New York – Actuant industrial conglomerate reaffirmed fiscal outlook. AAR government and defense segment sales surged. CarMax beats expectations.Cintas earnings were ahead of expectations. KB Home net soared. Nike said stronger dollar will affect earnings growth.[/R]

Tollbooth Index jumped 110.81 or 0.7% to 16,580.29 but for the year-to-date soared 20.5%.

Earnings Review

Actuant Corporation ((ATU)) declined 6.2% or $1.85 to $27.90 after the diversified industrial conglomerate said revenues in the fourth-quarter ending in August soared 9% from a year ago to $301 million.

Net loss in the quarter narrowed to $37.7 million or 62 cents per diluted share from $98.8 million or $1.65 in the same quarter last year.

In the first-quarter, the industrial conglomerate reaffirmed revenue growth estimate in the range of 3% to 5% or between $295 and $305 million and diluted earnings per share in the range of 20 cents to 25 cents.

Actuant reaffirmed fiscal 2019 revenues forecast between $1.21 billion and $1.24 billion and diluted earnings per share in the range of $1.09 to $1.20.

AAR Corporation ((AIR)) jumped 4.2% or $1.94 to $47.97 after the aviation and defense products provider said sales in the first-quarter ending in August soared 17% from a year ago to $466.3 million.

Net income in the quarter surged 42.5% to $15.1 million or 43 cents per diluted share from $10.6 million or 31 cents in the same quarter last year.

AAR said sales in the quarter in government and defense business jumped 32.4% and sales in the commercial segment surged 67.6%.

CarMax Inc ((KMX)) dropped 3.9% or $2.98 to $72.90 after the used and new cars retailer reported revenues in the second-quarter ending in August advanced 8.6% from a year ago to $4.8 billion.

In the quarter, used unit sales in comparable stores rose 2.1% and total used unit sales increased 5.8% and total wholesale unit sales surged 14.6%.

Net income in the quarter jumped 21.7% to $220.9 million or $1.24 per diluted share from $181.4 million or 98 cents in the same quarter last year.

Cintas Corporation ((CTAS)) plunged 4.3% or $9.25 to $203.71 after the uniform and facility services provider said revenues in the first-quarter ending in August jumped 5.4% from a year ago to $1.7 billion.

Net income in the quarter surged 42.5% to $212.5 million or $1.89 per diluted share from $217.2 million or $1.96 in the same quarter last year.

Cintas forecasted fiscal 2019 revenues in the range of $6.80 billion to $6.86 billion and diluted earnings per share in the range of $7.15 to $7.25.

KB Home ((KBH)) plummeted 4.5% or $1.14 to $24.16 after the single-family homes maker stated revenues in the third-quarter ending in August surged 7% from a year ago to $1.2 billion.

Net income in the quarter soared 74% to $87.5 million or 87 cents per diluted share from $50.2 million or 51 cents in the same quarter last year.

The homebuilder said total deliveries soared 8% to 2,988 homes with an average selling price slightly decreased to $408,200 and net orders in the quarter increased 3% to 2,685 units and net order value declined 5% to $1.02 billion.

Nike Inc ((NKE)) slumped 2% or $1.69 to $83.10 after the athletic footwear and apparel wholesaler reported revenues in the first-quarter ending in August soared 10% from a year ago to $9.9 billion.

Net income in the quarter jumped 15% to $1.1 billion or 67 cents per diluted share from $950 million or 57 cents in the same quarter last year.

The sportswear maker forecasted fiscal 2018 revenue to increase in the lower end of high single-digit range on the rising dollar.