Dollar General Falls on Lower Outlook, HD Supply, Movado Net Tumble

Mukesh Buch
25 Jan, 2019
New York City

AutoZone first-quarter same store sales jumped. Dollar General declined on lowered fiscal outlook. HD Supply beat sales and profit estimates and lifted fiscal outlook. Movado tumbled despite net tumbled. Toll Brothers profit beats estimates but orders decline.

Tollbooth Index slipped 77.91 or 0.5% to 15,464.12 but for the year-to-date soared 12.4%.

Earnings Review

AutoZone Inc, jumped 4.2% or $3.25 to $125.34 after the automobile parts retailer reported revenues in the first-quarter ending on November 17 rose 2% from a year ago to $2.6 billion.

Same store sales in the quarter jumped 2.7%.

Net income in the quarter soared 25.1% to $351.4 million or $13.47 per diluted share from $281 million or $10 in the same quarter last year.

In the quarter, AutoZone repurchased 654,000 shares of its common stock for $497.1 million, at an average price of $760 per share and by the end of the quarter the company has $985 million under its current share repurchase authorization.

Conn's Inc, increased 1.2% or $5.23 to $24.28 after the furniture, mattress, electronics and appliance stores operator said revenues in the third-quarter ending in October fell 2.7% from a year ago to $283.9 million.

Same store sales in the quarter surged 8.5%.

Net income in the quarter jumped to $14.6 million or 45 cents per diluted share from $1.6 million or 5 cents in the same quarter last year.

Dollar General Corporation, soared 8.9% or $15.72 to $250.35 after the discount retailer reported revenues in the third-quarter ending on November 3 soared 8.7% from a year ago to $6.4 billion.

Same store sales in the quarter advanced 2.8%.

Net income in the quarter surged 32% to $334 million or $1.26 per diluted share from $253 million or 93 cents in the same quarter last year.

Dollar General lowered fiscal 2018 net sales growth forecast to about 9% from the earlier estimate of 9% to 9.3% and operating margin rate to be “modestly below” from the earlier estimate of “relatively unchanged” and diluted earnings per share in the range of $5.85 to $6.05 from the earlier estimate of $5.95 to $6.15.

Donaldson Co Inc, advanced 7.4% or $23.41 to $47.52 after the filtration systems provider said revenues in the first-quarter ending on November 17 jumped 8.8% from a year ago to $701.4 million.

Net income in the quarter jumped to $73.8 million or 56 cents per diluted share from $60.9 million or 46 cents in the same quarter last year.

GMS Inc, rose 1.1% or $8.42 to $30.41 after the construction products distributor stated net sales in the second-quarter ending in October surged 28.7% from a year ago to $833.8 million.

Net income in the quarter soared 38.2% to $24.9 million or 58 cents per diluted share from $18 million or 43 cents in the same quarter last year.

HD Supply Holdings Inc, surges 18.6% or $32.54 to $254.38 after the industrial products distributor reported net sales in the third-quarter ending on October 28 soared 17.7% from a year ago to $1.6 billion.

Net income in the quarter tumbled 81.9% to $82 million or 45 cents per diluted share from $452 million or $2.42 in the same quarter last year.

HD Supply reaffirmed fiscal 2018 net sales forecast in the range of $5.98 billion and $6.03 billion and operating profit in the range of $857 million and $867 million and diluted earnings per share in the range of $3.33 and $3.38.

Movado Group IncMOV, gained 3.4% or $4.26 to $16.42 after the premier watch maker said revenues in the third-quarter ending in October gained 9.6% from a year ago to $208.9 million.

Net income in the quarter plunged 54.6% to $26.9 million or $1.14 cents per diluted share from $17.4 million or 75 cents in the same quarter last year.

The premier watch maker forecasted fiscal 2018 revenues between $660 million and $675 million, net income in the range of $58 million to $59.7 million and diluted earnings per share in the range of $2.45 to $2.55.

Toll Brothers Inc, surged 23.4% or $34.85 to $124.38 after the home builder reported revenues in the fourth-quarter ending in October soared 21% from a year ago to $2.5 billion.

Net income in the quarter surged 62% to $311 million or $2.08 per diluted share from $191.9 million or $1.17 in the same quarter last year.

The home builder said net signed contract value in the quarter declined 15% to $1.5 billion and contract units plunged 13% to 1,715.

Toll Brothers forecasted fiscal 2019 first-quarter total deliveries between 1,350 units and 1,550 units with an average price of between $850,000 and $880,000 and gross margin of about 23.5%.