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Earnings Analysis: 
Polo Ralph Lauren Net Up
Author: George Shopov
123jump.com



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Polo Ralph Lauren posted higher fourth-quarter earnings that beat Wall Street's expectations, after the fashion designer re-launched a product line, which helped boost revenue.

 
Polo Ralph Lauren Corporation (RL: chart) announced before market open Wednesday a 4.5% increase in its quarterly earnings, as revenues advanced driven by the relaunch of Lauren by Ralph Lauren product line. The New York-based fashion designer reported a net profit of $76.5 million, or 75 cents a share, for the fiscal fourth quarter of 2004, compared with a net profit of $73.2 million, or 74 cents a share, last year. Excluding items, the company posted income of $80.4 million, or 79 cents a share, for the quarter ended April 3, topping the consensus analysts’ estimate by a penny a share. For the same quarter in 2003, Polo had income before items of $76.1 million, or 77 cents a share. Quarterly net revenues soared 18.3% to $818.8 million, from $692.3 million, in 2003. Same-store sales climbed 10% from a year ago. For all of 2004, Polo turned in adjusted net income of $184.6 million, or $1.83 per share, against $183.7 million, or $1.85 per share, in fiscal year 2003.

Polo shares closed Wednesday down 60 cents, or 1.79%, at $33.00.

Toll Brothers, Inc. (TOL: chart) said Wednesday that its quarterly profits jumped 37%, citing strong demand and higher home prices. The Huntingdon Valley, Pennsylvania-based homebuilder turned in net income of $72.4 million, or 89 cents a share, for its fiscal second quarter ended April 30, up from net income of $52.9 million, or 72 cents a share, in the 2003 equivalent. Earnings were 2 cents a share above the mean estimate of analysts. Total revenue in the second quarter soared 35% to $819.5 million, from $607.9 million a year ago.

The stock dipped 2.17% on Wednesday to $40.50.

AutoZone, Inc. (AZO: chart) posted before the bell Wednesday a net profit of $143.4 million, or $1.68 a share, for the second quarter of fiscal 2004, a nearly 14% increase from a year-earlier net profit of $126 million, or $1.30 a share. The Memphis, Tennessee-based U.S. top auto parts retailer attributed the results to higher sales, which climbed 5.6% to $1.36 billion, from $1.29 billion, last year. Excluding items, earnings came to $1.61 a share, beating analysts’ projections by 6 cents a share.

AutoZone shares edged up 41 cents to close Wednesday at $83.79.

Opsware Inc. (OPSW: chart) of Sunnyvale, California, reported after the bell Wednesday that it swung to a profit in its first quarter from a prior-year loss, aided by a settlement gain and solid revenue growth. The software company said that it earned $2.0 million, or 2 cents a share, in its fiscal first quarter, rebounding from a year-ago net loss of $3.9 million, or 5 cents a share. Net revenue in the first quarter surged to $7.3 million from $2.5 million, in the year-earlier period, driven by strong demand.

The stock inched up 5 cents to $8.02 at market close Wednesday. Opsware shares soared 5.36% to $8.45 in after-hours trading.

Daktronics, Inc. (DAKT: chart) announced Wednesday fourth-quarter net income of $4.1 million, or 21 cents per share, in contrast to net income of $3.4 million, or 17 cents per share, in the corresponding period of 2003. The Brookings, South Dakota-based company said profit rise was due to higher sales of its scoreboards and other computer-programmable display systems. Total revenue advanced to $57.9 million in the quarter, from $47.4 million a year earlier. The mean estimate of analysts was for a profit of 21 cents a share, on revenue of $54.9 million.

Company shares plunged 5.44% on Wednesday to $22.60. The stock recovered 5 cents to $22.65 in after-market trade.

Bank of Montreal (BMO: chart), Canada’s fifth-largest bank, said Wednesday that its quarterly earnings rose sharply from a year ago, helped by strong results at its Investment Banking and Private Client units. The Toronto-based bank rolled out a second-quarter profit of C$602 million, or C$1.12 per share, a 47% rise from a profit of C$409 million, or 77 Canadian cents a share, in the same quarter a year ago. Quarterly revenue edged up 13% to C$2.44 billion.

The stock gained 14 cents to close Wednesday at $38.11 on the New York Stock Exchange.

Dollar Tree Stores, Inc. (DLTR: chart) of Chesapeake, Virginia, posted Wednesday first-quarter net income of $35.2 million, or 31 cents per share, against net income of $32.8 million, or 29 cents per share, in the prior-year comparable period. Results of the discount retailer outpaced analysts’ expectations for a profit of 29 cents a share. The company said improved distribution system and lower costs helped boost its earnings.

Company shares closed Wednesday at $25.52, up 2 cents, or 0.08%. The stock surged 5.05% to $26.81 in the extended session.

Michaels Stores, Inc. (MIK: chart) reported Wednesday a 41% increase in its quarterly profits, citing an improved retail market and a new inventory system. The Irving, Texas-based company, which is the world's No.1 arts and crafts retailer, said that it had first-quarter net earnings of $29.3 million, or 42 cents a share, compared with net earnings of $20.8 million, or 30 cents a share, generated last year. Results were well above Wall Street’s average earnings forecast of 37 cents per share. Sales in the quarter climbed 11% to $726 million.

The stock slipped 1.99% to $46.70 at market close Wednesday.

Genesco Inc. (GCO: chart) of Nashville, Tennessee, announced Wednesday a profit of $5.8 million, or 26 cents per share, for its fiscal first quarter, in contrast to a profit of $3.3 million, or 15 cents per share, in the first quarter of the previous year. The shoe retailer said total sales in the quarter were up 17% to $225.5 million. Genesco credited the strong performance its Journeys and Hat World chains for the results.

Genesco shares rose 2.21% on Wednesday to $25.00.

NCI Building Systems, Inc. (NCS: chart) said Wednesday that its quarterly profits rose more than threefold, due to improving markets for repairs and retrofit products. The Houston, Texas-based maker of engineered metal building systems and components reported net earnings of $7.7 million, or 39 cents per share, for its second quarter, compared with net earnings of $2.0 million, or 11 cents per share, a year earlier. NCI delivered revenue of $254.7 million in the quarter, up 27.9% from last year.

The stock gained a penny to close Wednesday at $29.21.
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