Cintas, Nike Reported Strong Results; Zynga Acquires Small Giant Games

Mukesh Buch
21 Dec, 2018
New York City

CarMax beats earnings estimates. Cintas reported strong results and lifted revenues growth forecast. Ennis jumped after revenues and profit soared. Nike soared after better-than-expected results. Zynga agreed to acquire Small Giant Games for $560 million.

[R]12:05 PM New York City, New York – CarMax beats earnings estimates. Cintas reported strong results and lifted revenues growth forecast. Ennis jumped after revenues and profit soared. Nike soared after better-than-expected results. Zynga agreed to acquire Small Giant Games for $560 million.[/R]

Tollbooth Index slipped 75.89 or 0.6% to 13,807.43 but for the year-to-date rose 0.3%.

Earnings Review

CarMax Inc ((KMX)) soared 5.3% or $3.03 to $59.75 after the used-car retailer reported net sales in the third-quarter ending in November jumped 4.6% from a year ago to $4.3 billion.

Net income in the quarter surged 27.9% to $190.3 million or $1.09 per diluted share from $148.8 million or 81 cents in the same quarter last year.

The retailer said used unit sales in comparable stores fell 1.2% and total used unit sales advanced 2.3% and total wholesale unit sales increased 10%.

Cintas Corporation ((CTAS)) gained 1.3% or $2.06 to $161.10 after the uniforms and related business services reported revenues in the second-quarter ending in November advanced 7% from a year ago to $1.7 billion.

Net income in the quarter soared 77.2% to $243 million or $2.18 per diluted share from $137.1 million or $1.23 in the same quarter last year.

Cintas forecasted fiscal 2019 revenues growth of 6.1% or between $6.8 billion and $6.9 billion and diluted earnings per share in the range of $7.68 to $7.76.

Ennis Inc ((EBF)) jumped 5.6% or 97 cents to $18.53 after the forms, labels, tags, envelopes, folders maker said revenues in the third-quarter ending in November soared 15.5% from a year ago to $108.1 million.

Net income in the quarter jumped 25.3% to $10.4 million or 40 cents per diluted share from $8.3 million or 33 cents in the same quarter last year.

Nike Inc ((NKE)) soared 8.7% or $5.85 to $73.38 after the sports footwear, apparel, equipment, accessories maker reported revenues in the second-quarter ending in November surged 10% from a year ago to $9.4 billion.

Net income in the quarter jumped 10% to $847 million or 52 cents per diluted share from $767 million or 46 cents in the same quarter last year.

Nike said higher income was driven by strong revenue growth and gross margin.

Zynga Inc ((ZNGA)) jumped 6.5% or 24 cents to $3.83 after the social video game developer agreed to acquire Helsinki-based rival Small Giant Games, in a stock and cash for about $560 million in cash and stock.

Under the terms, Zynga offered $330 million in cash and $230 million of unregistered Zynga common stock.

The video game developer maker lifted fiscal 2018 booking forecast of about $260 million from the earlier estimate of $250 million and net loss of $1.5 million from the earlier estimate of $2 million.