Mid-Day BUZZERS: Deere and Staples SINK, Target Hits the Mark
Shares of Deere (NYSE:DE) fell more than 6 percent as of mid-day. The company reported a rise in net income and revenue for its third quarter, but still missed expectations. Net income gained 10.6 percent to $788 million, compared to $712.3 million a year earlier. Revenue increased 15.3 percent to $9.06 billion. “John Deere delivered record third quarter performance in both sales and income,” said Samuel R. Allen, chairman and chief executive officer. “Although a strong quarter, we are not satisfied that sales fell short of our expectations due to weakening in certain international markets and short-term manufacturing inefficiencies resulting from the introduction of a record number of new products.”
Target (NYSE:TGT) shares jumped 2.26 percent after reporting financial results for the second quarter. Net income remained steady at $704 million, while revenue edged 3.3 percent higher to $16.78 billion. It was a beat on the top and bottom line for the retailer. “We’re pleased with Target’s strong second quarter financial performance, which reflects a continued focus on delivering an outstanding experience for our guests and disciplined execution of our strategy,” said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation. Competitor Walmart (NYSE:WMT) edged slightly up on the news.
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Staples (NASDAQ:SPLS) shares crashed more than 17 percent this morning. The company reported that second quarter net income dropped 31.7 percent to $120.4 million (18 cents per share), compared to $176.4 million (25 cents per share) a year earlier. Revenue also declined 5.5 percent to $5.5 billion in the same period. “Our second quarter results fell short of our expectations due to softer than expected sales trends in North America and ongoing weakness in Europe and Australia,” said Ron Sargent, chairman and chief executive officer.
Despite reporting dismal results for the second quarter, shares of Abercrombie & Fitch (NYSE:ANF) surged 8.01 percent. Net income declined 51.6 percent to $15.5 million (19 cents per share), compared to $32 million (35 cents per share) a year earlier. Revenue increased 3.8 percent to $951.4 million. Analysts had expected earnings of about 17 cents per share.
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