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Major Movers on June 4; ABM, ET, DG, GIII, ULTA

Shares of ABM Industries Inc. (NYSE: ABM) jumped about 4% by afternoon trade after the integrated building security solutions provider reported late on Monday that fiscal second quarter income climbed 65%, thanks to recent acquisitions that boosted its top-line growth. For the fiscal second quarter, ABM reported adjusted/non-GAAP earnings of $20.2 million or 36 cents a share compared to $16.3 million or 30 cents a share, in the same quarter of last year. Analysts polled by Thomson Reuters were expecting earnings of 33 cents a share. Revenue jumped 11% to $1.17 billion from $1.06 billion but fell short of analysts’ consensus estimate for $1.18 billion.

Shares of ExactTarget Inc. (NYSE: ET) skyrocketed about 52% by afternoon trade. Salesforce.com Inc. (NYSE: CRM) announced on Tuesday that has agreed to buy the social marketing software maker in an all cash deal estimated at $2.5 billion. Salesforce.com Inc will be paying $33.75 a share, which implies 53% premium over the closing stock price on Monday. The deal is expected to close by the end of the next month. The Boards from both companies have unanimously approved the deal. ExactTarget made its public debut last year at $19 a share.

Dollar General Corp. (NYSE:DG) slumped about 7.50% by afternoon trade. Even though the discount retailer’s fiscal first quarter adjusted earnings and revenue matched Street’s estimates; investors were disappointed with Company’s full-year earnings guidance. The Company slashed its full-year outlook citing weaker sales growth.

For the fiscal first quarter, Dollar General reported net income of $220.08 million or 67 cents a share compared to a profit of $213.42 million or 63 cents a share. Stripping out onetime items, adjusted earnings stood at 71 cents. Net sales rose 8.5% to $4.233 billion from $3.901 billion, in the same quarter of last fiscal. Comparable-store-sales, a key gauge on retail chain’s performance as it excluded sales from those stores that were opened or shuttered in last 12 months thereby giving an accurate idea over the sales trend, rose 2.6%. The discount retailer attributed higher customer traffic and increase in average transaction amount.

Shares of G-III Apparel Group Ltd. (NASDAQ: GIII) soared about 18% by afternoon trade after the apparel retailer late last evening surprised the street by reporting that it swung back into fiscal quarter profit and handed better-than-expected fiscal first quarter results.

For the full-year fiscal, the Company is now expecting earnings to be in the range of $3.20 to $3.30 a share, assuming sales of $1.57 billion, up from its earlier projections for earnings of $3.10 to $3.20 a share on sales of $1.55 billion.

For the fiscal second quarter, the Company is anticipating earnings of 6 cents to 10 cents a share on revenue of $287 million. Analysts’ consensus estimate was for earnings of 13 cents a share on revenue of $283 million.

Shares of Ulta Salon, Cosmetics & Fragrance Inc. (NASDAQ:ULTA) fell about 3% by afternoon trade after Goldman Sachs slashed its rating on the beauty products retailer’s stock to “neutral” from “buy”, citing that the company will need to spend more money on information technology in order to derive benefits from fast growing e-sales business.

 


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