Shares of Zale Corp. (ZLC) catapulted more than 20% by afternoon trade after the jewelry retailer reported on Wednesday that it swung into fiscal third quarter profit. The Company also announced that the appointment of its new Chairman, Terry Burman, who previously served at the Chief Executive at rival firm, Signet Jewelers Ltd. For the fiscal third quarter ended April 30, Zale reported a net income of $5.05 million or 13 cents a share compared to year-earlier loss of $4.53 million or 14 cents a share. Revenue edged down 0.6% to $442.7 million, in the fiscal third quarter. Analysts’ consensus estimate was for earnings of loss of penny a share on revenue of $443 million. Gross margin widened to 52.6% from 51.3%, in the same quarter of last fiscal. Comparable-store-sales rose 1.4% while analysts’ consensus estimate was for 2% fall.
NetApp Inc. (NASDAQ: NTAP) jumped about 3.30% by midday trade. Even though the data storage company reported that fiscal fourth quarter declined 3.8% as increase in operating costs and weakness in product sales hurt the bottom line, Company’s shares repurchase program and its restructuring plans sparked off rally after the market closed on Tuesday. The Company announced that it will expand its shares repurchase program by $1.6 billion. The Company also announced its first ever quarterly cash dividend. The Company said that the board approved a quarterly dividend of 15 cents a share. On non-GAAP basis, earnings stood at 69 cents a share compared to 66 cents, in the year-earlier quarter. Revenue edged up 0.8% to $1.72 billion. Back in February, the Company said that it expects earnings to come in the range of 65 cents to 70 cents a share on revenue of $1.7 billion to $1.8 billion.
Shares of Target Corporation (NYSE: TGT) plunged 3.75% by afternoon trade after the discount retailer downwardly revised its full-year earnings guidance, citing weakness in sales in April due to unusually cool weather as shoppers postponed their shopping plans for summer and spring. For the full-year fiscal, Target Corp is now expecting earnings of $4.70 to $4.90 a share down from its earlier forecast for $4.85 to $5.05 a share. Excluding onetime items, earnings came at $1.05 a share down from $1.11 a share, in the same quarter of last year. Earlier in February, the Company projected earnings to be in the range of $1.10 to $1.20 a share; however, it slashed its guidance as sales were badly impacted due to harsh weather conditions. Revenue fell 1% to $16.71 billion while analysts’ consensus estimate was for $16.78 billion. Same-store-sales in the U.S. retail segment edged down 0.6%.
Shares of Toll Brothers Inc. (NYSE: TOL) climbed about 6% by afternoon trade after the luxury home builder reported 46% increase in fiscal second quarter profit, driven by higher average home prices. Both earnings and revenue topped Wall Street estimates. New orders jumped at record high levels, in previous 7 years, the Company said.
Shares of Saks Inc. (NYSE: SKS) skyrocketed about 16% by midday trade after news reports said that the retailer has hired Goldman Sachs to look at the possible sale of the Company.
Recent Comments