Shares of Express Inc. (NYSE: EXPR) gained sharply on Wednesday after the specialty retailer handed better-than-expected revenue for the fiscal second quarter. Earnings also matched Street’s consensus estimates. Encouraged by higher sales and growing customer traffic, the retailer also lifted its full-year earnings outlook. Same-store-sales rose 6% in the recently concluded quarter. E-commerce sales jumped 27%. Overall sales rose 7% to $486.2 million. For the current quarter, the company now expects earnings to be in the range of 21 cents to 26 cents a share while analysts’ forecast was for 25 cents.
Category: Large Cap Growth Stocks
DSW Tops Q2 Expectation
Shares of DSW Inc. (NYSE: DSW) rallied on Tuesday after the footwear retailer reported 15% increase in fiscal second quarter net income, aided by higher sales. For the quarter which ended August 3, the Columbus OH based company posted a profit of $33.7 million or 73 cents a share compared to a net income of $29.3 million or 65 cents a share, in the same quarter of last year. Stripping out onetime items such as expenses linked to luxury test and legacy charges related to an acquisition of RVI, the adjusted earnings stood at 97 cents a share up from 66 cents a share, in the year-earlier quarter. Sales climbed 9.7% to $562.1 million. Analysts’ consensus estimate was for earnings of 80 cents a share on revenue of $560 million.
Akorn Agrees To Acquire Hi-Tech Pharmacal
Generic drugmaker, Akorn Inc. (NASDAQ: AKRX) has agreed to acquire its smaller rival Hi-Tech Pharmacal Co. (NASDAQ: HITK) in deal valued at $640 million. The acquisition will allow Akorn to gain traction in the eye-care drug market by expanding its portfolio, which includes ointments and oral liquids. According to the terms of the deal, Akorn will pay $43.50 for each share held in Hi-Tech, which implies a premium of 23.5% to Hi-Tech’s closing stock price on Monday. The deal, which is all-cash, makes Akorn as the third largest U.S. generic ophthalmic player. The acquisition will considerably increase over-the-counter and prescribed drug sales, the company said in a statement.
Sanderson Farms Beats Q3 Estimates
Sanderson Farms Inc. (NASDAQ: SAFM) reported sharp jump in fiscal third quarter earnings. The poultry producer’s bottom line was bolstered by higher prices of chicken products. In the latest period, overall poultry prices increased 12% while prices of boneless chicken breasts soared 32% from the year-earlier quarter. The earnings stood at $67.9 million or $2.95 a share compared to a profit of $28.7 million or $1.25 a share, in the same quarter of last year. Sales jumped 18% to $739 million. Both earnings and revenue best Street’s expectations. Analysts expected earnings of $2.62 a share on revenue of $722 million.
Tiffany Q2 Earnings Up 16%
Luxury jewelry retailer, Tiffany & Co. (NYSE: TIF) reported on Tuesday that fiscal second quarter earnings rose 16%, aided by strong sales growth in Asia Pacific and improved margin. The Company also raised its full-year earnings guidance. Tiffany now expects earnings to be in the range of $3.50 to $3.60 a share up from its previous guidance of $3.43 to $3.53 a share. For the period ended July 31, the Company posted a profit of $106.8 million or 83 cents a share compared to a net income of $91.8 million or 72 cents a share, in the year earlier quarter. Same-store-sales grew 5% (excluding the impact of currency fluctuation). Sales rose 4.4% to $925.9 million.
Dick’s Sporting Goods Downgraded
Equity research firm, Oppenheimer downgraded Dick’s Sporting Goods (NYSE: DKS) to a “market-perform” from a “outperform”, citing continuation of weak sales trend and certain “acute products issues” which the company will have to pay attention to. The price target on the stock was slashed to $44 from $56. Earlier on Wednesday, Deutsche Bank reiterated a “buy” rating on the stock but cut the price target to $52 from $57 while analysts at Citigroup Inc. cut price target to $54. The Company on Tuesday handed weaker-than-expected fiscal second quarter results.
Ann Inc. Cuts Full-Year Revenue Outlook
Specialty retailer for women’s apparels and accessories, Ann Inc. (NYSE: ANN) said on Friday that fiscal second quarter profit rose 16%, aided by higher sales at its Loft and Ann Taylor stores. However, the retailer, just like its peers, slashed the full-year outlook. For the latest period, the adjusted earnings stood at 76 cents a share, comfortably beating analysts’ estimate for 65 cents a share. Revenue rose 7% to $638.2 million but missed Street’s forecast of $639.7 million. For the full-fiscal year, the Company anticipates revenue of $2.52 billion down from earlier projection for $2.54 billion.
GameStop Corp. Lifts Full-Year Guidance
Although GameStop Corp.’s (NYSE: GME) fiscal second-quarter sales and profit fell amid growing trend of mobile based games over consoles, shares rallied on Thursday after the company raised its full-year outlook. Both earnings and revenue for the latest period were also better-than-expected. For the full-fiscal year, the Company now expects earnings to be in the range of $3 to $3.20 up from its earlier forecast of $2.90 to $3.15. Same-store-sales are expected in the range of 3.5% fall to 1.5% growth. Earlier the Company projected a decline of 5% to 1.5% gain.
Abercrombie & Fitch Q2 Results and Q3 Guidance Way Below Forecasts
The teen apparel retailer, Abercrombie & Fitch Co. (NYSE: ANF) reported 33% plunge in fiscal second-quarter profit. The retailer’s earnings and revenue also missed Wall Street’s expectation by a wide margin. Speaking to analysts in a conference call, Abercrombie & Fitch’s CEO Mike Jefferies said that weakness in female apparel business and lower customer traffic were the key factors behind poor showing. For the fiscal third quarter, the Company expects earnings to be in the range of 40 cents to 45 cents while analysts polled by Thomson Reuters were anticipating $1.06 a share.
American Eagle Q3 Earnings Forecast Sharply Below Expectation
Shares of American Eagle Outfitters (NYSE: AEO) were hammered on Wednesday after the teen apparel chain provided a very disappointing fiscal third quarter earnings outlook even as it said that it will continue selling its products at discounted prices to push sales during the back-to-school season. For the fiscal third quarter, American Eagle Outfitters anticipates earnings of 14 cents to 16 cents a share while analysts surveyed by Thomson Reuters expected 35 cents. In the latest period, the adjusted earnings stood at 10 cents a share, in line with its most recent projection, made two weeks ago. At that time, analysts had a consensus forecast for earnings of 21 cents a share.