We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Markets had a hard time keeping in positive territory for the most part today, with the small-cap Russell 2000 dropping -1.5% in the morning hours and basically stayed there all session. The Dow dipped -0.13%, -45 points, while the S&P 500 and Nasdaq finished up +0.12% and +0.07%, respectively. We came into the trading session having already rolled off yesterday’s big gains on the Russell, and have largely been in lock-step all day.
We saw a healthy amount of economic data ahead of today’s open, including Jobless Claims, Import/Export Prices and a new Philly Fed survey. One we did not mention is Industrial Production for October, coming in 20 basis points (bps) below expectations to -0.6% — a far cry from the +0.3% reported in the previous quarter. Its adjoining metric, Capacity Utilization, increased to +79.5% from +78.9% in last month’s print, 20 bps higher than projections.
After today’s close, Gap Inc. (GPS - Free Report) posted a great big earnings outperformance — to 59 cents per share from 20 cents expected (though the year-ago 71 cents per share reported still had this figure beat). Revenues of $3.8 billion in the quarter surpassed the $3.61 billion expected, though this was still down -7% from a year ago. Same-store sales were -6% year over year, but Gross Margins came in at +41.3%. The Old Navy, Banana Republic and Athleta parent saw shares shoot up +11% on the news.
Zacks Rank #2 (Buy)-rated Ross Stores (ROST - Free Report) also beat estimates on both top and bottom lines today: earnings of $1.33 per share easily surpassed the $1.22 analysts were looking for, and +33% year over year, on quarterly sales of $4.9 billion, narrowly edging out the $4.84 billion anticipated. Next-quarter earnings guidance was not raised, but full-year earnings guidance was, to a new range of $5.30-5.36 per share; the Zacks consensus had been for $5.24. Shares are up more than +5% in late trading.
Another beat-and-raise from a specialty retailer this afternoon came from Bath & Body Works (BBWI - Free Report) , which reported 56 cents per share versus expectations of 36 cents, swinging to gains from the year-ago quarter. Revenues of $1.562 billion outdid the $1.55 billion estimate, but was still down -2.6% year over year. Current-quarter EPS guidance in in a range from $2.99-3.19 per share; the Zacks consensus had been $3.08 for this Zacks Rank #3 (Hold) company.
Tomorrow brings more homebuilding data — Housing Starts and Building Permits for October, both of which are expected to trickle down month over month. Monthly starts numbers have been all over the place during the past year, with a high in May of 1.583 million and a low of 1.269 million in August; they are expected to come down to 1.35 million from 1.36 million previously. Permits, which often predict future starts levels, are expected to reach 1.45 million from 1.47 million. Questions or comments about this article and/or author? Click here>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Specialty Retailers Report Q3 Earnings Afterhours: Gap, Ross, B&BW
Markets had a hard time keeping in positive territory for the most part today, with the small-cap Russell 2000 dropping -1.5% in the morning hours and basically stayed there all session. The Dow dipped -0.13%, -45 points, while the S&P 500 and Nasdaq finished up +0.12% and +0.07%, respectively. We came into the trading session having already rolled off yesterday’s big gains on the Russell, and have largely been in lock-step all day.
We saw a healthy amount of economic data ahead of today’s open, including Jobless Claims, Import/Export Prices and a new Philly Fed survey. One we did not mention is Industrial Production for October, coming in 20 basis points (bps) below expectations to -0.6% — a far cry from the +0.3% reported in the previous quarter. Its adjoining metric, Capacity Utilization, increased to +79.5% from +78.9% in last month’s print, 20 bps higher than projections.
After today’s close, Gap Inc. (GPS - Free Report) posted a great big earnings outperformance — to 59 cents per share from 20 cents expected (though the year-ago 71 cents per share reported still had this figure beat). Revenues of $3.8 billion in the quarter surpassed the $3.61 billion expected, though this was still down -7% from a year ago. Same-store sales were -6% year over year, but Gross Margins came in at +41.3%. The Old Navy, Banana Republic and Athleta parent saw shares shoot up +11% on the news.
Zacks Rank #2 (Buy)-rated Ross Stores (ROST - Free Report) also beat estimates on both top and bottom lines today: earnings of $1.33 per share easily surpassed the $1.22 analysts were looking for, and +33% year over year, on quarterly sales of $4.9 billion, narrowly edging out the $4.84 billion anticipated. Next-quarter earnings guidance was not raised, but full-year earnings guidance was, to a new range of $5.30-5.36 per share; the Zacks consensus had been for $5.24. Shares are up more than +5% in late trading.
Another beat-and-raise from a specialty retailer this afternoon came from Bath & Body Works (BBWI - Free Report) , which reported 56 cents per share versus expectations of 36 cents, swinging to gains from the year-ago quarter. Revenues of $1.562 billion outdid the $1.55 billion estimate, but was still down -2.6% year over year. Current-quarter EPS guidance in in a range from $2.99-3.19 per share; the Zacks consensus had been $3.08 for this Zacks Rank #3 (Hold) company.
Tomorrow brings more homebuilding data — Housing Starts and Building Permits for October, both of which are expected to trickle down month over month. Monthly starts numbers have been all over the place during the past year, with a high in May of 1.583 million and a low of 1.269 million in August; they are expected to come down to 1.35 million from 1.36 million previously. Permits, which often predict future starts levels, are expected to reach 1.45 million from 1.47 million.
Questions or comments about this article and/or author? Click here>>