Will Earnings from these Heavy Hitting Companies Move Markets?
These top companies reported earnings Wednesday:
1) Polo Ralph Lauren (NASDAQ:RL) The big-time clothes maker, lifestyle products producer, and fashion trend setter released its second quarter earnings yesterday, and missed the targets set in mean analyst estimates. Shares slumped some 12% in early trading yesterday following Polo’s release. Net income fell to $73.2 million, a 35% decline over the past year, although total revenue rose 6.7% to 1.43 billion in that same span of time. Last quarter drop in income broke a streak of four consecutive quarters of profits expanding at Polo. According to Chairman and CEO Ralph Lauren, ” We reported record sales and earnings in Fiscal 2011 while strengthening our foundation for powerful long-term growth.During the year, we opened important flagship stores in some of the world’s premier cities. We also completed the last stage of acquiring our Asian operations, and we are redefining how our brand is presented in this important region of the world.” Keep an eye on competitors Liz Claiborne, Inc. (NYSE:LIZ), and Nordstrom (NYSE:JWN).
2) Toll Brothers Inc. (NYSE:TOL): The real estate home builder, marketer and financier, wowed Wall Street yesterday as shares rose some 15 cents on lukewarm earnings. This came despite Toll Bros. failure to reach mean analyst estimates by just .o1-.02 cents a share earnings. Net income rose to 20.8 million last quarter but was a substantial improvement from the 40.4 million dollar loss the company posted in its previous earnings. Revenues totaled 317.9 million, a 2.7% increase for the year-to-date. “We continue to see stability, and, in some cases, improvement, across our various luxury product lines. Our target customers generally have remained employed during this downturn, and, with their solid credit profiles, been able to secure mortgages at good rates. We believe that some of our clients… are starting to move off the fence and into the market” said President and CEO Douglas C. Yearley, Jr. of the company’s recovering prospects. Keep an eye on competitors PulteGroup, Inc. (NYSE:PHM) and M.D.C. Holdings, Inc. (NYSE:MDC).
3) Costco (NASDAQ:COST) : Last but not least, the much beloved merchandiser and retail wholesaler was able to churn out profit growth this quarter for the third consecutive period and beat mean analyst estimates in terms of earnings per share and revenue. Costco swung to a profit of $324 million ($.73/share) in the quarter, a gain of $18 million or 6% from its per share earnings in its last report. Revenue has risen the past four quarters. Revenue increased 11.4% to $20.88 billion in second quarter. The figure rose 11.2% in first quarter from the year earlier and climbed 7.8% in fourth quarter of the last fiscal year from the year-ago quarter. Costco shares traded down some 2% yesterday following release of the report. Keep an eye on competitors Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), Dollar General Corp. (NYSE:DG), BJ’s Wholesale Club, Inc. (NYSE:BJ).