Darden Restaurants Inc. beat analyst estimates on earnings per share with a 16 percent jump, but fell short on revenue forecasts for its fiscal first quarter.
Orlando-based Darden (NYSE: DRI) reported net income of $94.3 million, or 67 cents per share, on revenue of $1.73 billion for the period ended Aug. 30. That compared with net income of $82.1 million, or 58 cents per share, on revenue of $1.77 billion for the same period last fiscal year.
Analysts surveyed by Thomas Reuters estimated the restaurant operating firm to earn 66 cents per share on revenue of nearly $1.8 billion.
Darden also posted same-restaurant sales drops across all five of its reporting restaurant brands. The Capital Grille led the way with an 18 percent decline, partially offset by the addition of five net new restaurants.
Red Lobster followed with a 7.9 percent drop, partially offset by revenue from 11 net new restaurants; Bahama Breeze and LongHorn Steakhouse followed with declines of 6.3 percent and 6.2 percent, respectively; and Olive Garden posted a 2.9 percent drop in same-restaurant sales.
Blended same-restaurant sales for Olive Garden, Red Lobster and LongHorn Steakhouse were down 5.3 percent this quarter, better than the estimated decline of 7.8 percent for the Knapp-Track benchmark of U.S. same-restaurant sales, excluding Darden.
Olive Garden was the lone brand to experience an increase in fiscal first-quarter sales, which were 1.2 percent higher than the prior year at $821 million. The other restaurant brands sales were as follows:
• Red Lobster’s $605 million in sales was 6.3 percent lower than the same period last fiscal year.
• LongHorn Steakhouse reported $211 million, 2 percent below a year ago.
• The Capital Grille had $50 million in revenue, 8.4 percent below last fiscal year.
• Bahama Breeze posted $35 million, 1.5 percent below the prior year.
“Despite the challenges, our brands once again posted meaningfully stronger sales results than our industry,” Chairman and Chief Executive Officer Clarence Otis said in a prepared statement.
Darden’s board of directors declared a quarterly cash dividend of 25 cents per share on the company’s outstanding common stock. The dividend is payable on Nov. 2 to shareholders of record at the close of business on Oct. 9.
Darden Restaurants, which operates 1,778 total restaurants worldwide as of Aug. 30, reported $7.2 billion in fiscal 2009 annual sales.
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NKE revs light, but beats by 7 cents on bottom line
BEAVERTON, Ore.–(BUSINESS WIRE)–NIKE, Inc. (NYSE:NKE – News):
Select First Quarter Results:
- Revenue $4.8 billion; down 12 percent versus prior year or down 7 percent excluding currency changes
- Diluted EPS up 1 percent from prior year to $1.04
- Worldwide futures orders down 6 percent, down 4 percent excluding currency changes
- Inventories down 7 percent versus prior year
NIKE, Inc. (NYSE:NKE – News) today reported financial results for its fiscal 2010 first quarter ended August 31, 2009. First quarter revenues decreased 12 percent to $4.8 billion, compared to $5.4 billion for the same period last year. Excluding changes in currency exchange rates, net revenue was down 7 percent compared to the same period last year. First quarter net income was flat compared to the prior year at $513 million and diluted earnings per share increased 1 percent to $1.04.
“We delivered a good start to the fiscal year,” said Mark Parker, NIKE, Inc. President and Chief Executive Officer. “These results illustrate that the emotion of sports, combined with innovative product, strong brands and premium retail experiences can make powerful connections to consumers even in challenging times.”
Parker concluded, “Leveraging these powerful consumer connections with a laser focus on operational excellence will enable Nike to deliver consistent long-term profitable growth. We’re on the right track, moving forward with confidence in hand and opportunity in mind.”*
Futures Orders
The Company reported worldwide futures orders for Nike brand athletic footwear and apparel, scheduled for delivery from September 2009 through January 2010, totaling $6.2 billion, 6 percent lower than orders reported for the same period last year. Excluding currency changes, reported orders would have declined 4 percent.*
By geography, futures orders were as follows:
| Geography |
Reported Futures Orders |
Excluding Currency Changes |
||
| North America | -4% | -4% | ||
| Western Europe | -8% | -6% | ||
| Central and Eastern Europe | -28% | -24% | ||
| Greater China | -6% | -7% | ||
| Japan | -3% | -5% | ||
| Emerging Markets | +10% | +18% | ||
Geography Highlights
North America
During the first quarter, revenues in North America decreased 5 percent to $1.8 billion. Footwear revenues declined 4 percent to $1.2 billion, apparel revenues decreased 9 percent to $444 million and equipment revenues were down 5 percent to $98 million. Excluding changes in currency, revenues for North America declined 5 percent with footwear down 3 percent, apparel decreasing 8 percent and equipment dropping 5 percent. North America earnings before interest and taxes (commonly referred to as “EBIT”) increased 10 percent to $411 million due to lower selling and administrative expenses and improved gross margins.
Western Europe
First quarter revenue for Western Europe was down 18 percent to $1.1 billion. Footwear revenue decreased 15 percent to $635 million, apparel revenue was down 21 percent to $393 million and equipment revenue declined 26 percent to $77 million. Revenue for Western Europe, excluding currency changes, was down 8 percent with footwear declining 5 percent, apparel dropping 11 percent and equipment decreasing 17 percent. First quarter EBIT decreased 11 percent to $289 million.
Central and Eastern Europe
In the first quarter, revenue for Central and Eastern Europe declined 33 percent to $286 million. Footwear revenue decreased 32 percent to $159 million, apparel revenue was down 37 percent to $97 million and equipment revenue declined 29 percent to $30 million. Excluding currency changes, revenue in Central and Eastern Europe was down 23 percent compared to the same period last year with footwear declining 21 percent, apparel dropping 28 percent and equipment down 16 percent. First quarter EBIT decreased 35 percent to $82 million.
Greater China
Revenue for Greater China during the first quarter was down 16 percent to $416 million compared to $496 million last year. Footwear revenue was down 17 percent to $218 million, apparel revenue declined 16 percent to $168 million, and equipment revenue decreased 16 percent to $29 million. Excluding currency changes, revenue for Greater China was down 17 percent from last year with footwear down 17 percent and both apparel and equipment declining 16 percent. First quarter EBIT increased 7 percent to $149 million mainly driven by lower demand creation spending. Last year’s first quarter demand creation spending was higher in support of the Olympic Games in Beijing.
Japan
Japan first quarter revenues were essentially flat compared to the prior year at $186 million. Footwear revenue was up 4 percent to $98 million, apparel revenue dropped 8 percent to $67 million and equipment revenue increased 5 percent to $22 million. Excluding currency changes, Japan first quarter revenues were 10 percent lower than last year with footwear down 6 percent, apparel down 17 percent and equipment dropping 5 percent. First quarter EBIT decreased 7 percent to $35 million.
Emerging Markets
In the Emerging Markets revenue decreased 8 percent to $422 million for the first quarter compared to $458 million last year. Footwear revenue was down 6 percent to $279 million, apparel revenue dropped 9 percent to $107 million and equipment revenue decreased 19 percent to $36 million. Excluding currency changes, revenue in the Emerging Markets increased 9 percent compared to last year with 11 percent growth in footwear, a 9 percent increase of in apparel and a 4 percent drop in equipment. Despite declining reported revenue, first quarter EBIT rose 39 percent to $101 million due to lower selling and administrative expenses.
Other Businesses
For the first quarter, Other business revenue, which includes Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd. decreased 5 percent to $604 million. Excluding currency changes revenue was down 3 percent. EBIT was flat to last year at $87 million….
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BOISE, Idaho–(BUSINESS WIRE)–Micron Technology, Inc., (NYSE:MU – News) today announced results of operations for its fourth quarter and 2009 fiscal year, which ended September 3, 2009. For the fourth quarter of fiscal 2009, the company posted a net loss of $88 million, or $0.10 per diluted share, on net sales of $1.3 billion. For the 2009 fiscal year, the company posted a net loss of $1.8 billion, or $2.29 per diluted share, on net sales of $4.8 billion. In the fourth quarter and for the 2009 fiscal year, the company generated $357 million and $1.2 billion, respectively, in cash flows from operations. The company ended the year with $1.5 billion in cash and investments.
“The market, while still challenging, is beginning to improve. Micron has been one of the only companies in the industry able to generate positive operating cash flow every quarter during this downturn. Our operating performance and ongoing cost improvements put Micron in a great competitive position going forward,” said Steve Appleton, Micron Chairman and CEO.
Revenue from sales of DRAM products increased 28 percent in the fourth quarter compared to the third quarter due to a 19 percent increase in sales volumes and an 8 percent increase in average selling prices. Revenue from sales of NAND Flash products increased 10 percent in the fourth quarter compared to the third quarter due to a 23 percent increase in sales volumes. This was partially offset by an 11 percent decrease in average selling prices resulting primarily from reduced manufacturing costs associated with products sold to Intel Corporation, the company’s NAND Flash manufacturing partner. Prices for NAND Flash products sold to Intel approximate cost, which decreased significantly in the fourth quarter compared to the third quarter as the transition to the company’s 34 nanometer (nm) NAND process technology was substantially completed. Average selling prices for NAND Flash sales excluding those to Intel were relatively stable in the fourth quarter compared to the previous quarter.
The company’s gross margin on sales of memory products continued to improve from 11 percent in the third quarter of fiscal 2009 to 12 percent in the fourth quarter. Cost of goods sold in the fourth quarter includes approximately $37 million of charges for unused production capacity at the company’s Inotera and IM Flash joint ventures. There was no lower of cost or market write-down of memory inventories during the third or fourth quarters. When adjusted to exclude the effects of selling products subject to previous lower of cost or market write-downs and the idle capacity costs from Inotera and IM Flash, gross margins on sales of memory products improved to positive 8 percent in the fourth quarter compared to negative 12 percent in the third quarter as a result of significant decreases in per gigabit manufacturing costs.
Unit sales from the company’s imaging segment were approximately 30 percent higher in the fourth quarter as compared to the preceding quarter, the effect of which was essentially offset by a decline in the average selling price resulting from the transition during the quarter to wafer foundry sales of products. Gross margin on sales of imaging products however improved to 20 percent in the fourth quarter as compared to 2 percent in the third quarter primarily as a result of increased utilization of dedicated 200 millimeter (mm) manufacturing capacity.
The company will host a conference call today at 2:30 p.m. MDT to discuss its financial results. The call, audio and slides will be available online at www.micron.com. A webcast replay will be available on the company’s Web site until Sept. 29, 2010. A taped audio replay of the conference call will also be available at 706-645-9291 (conference number: 30898947) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT on Oct. 6, 2009.
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ST. PETERSBURG, Fla.–(BUSINESS WIRE)–Jabil Circuit, Inc. (NYSE:JBL – News), reported its preliminary, unaudited financial results for the fourth quarter and fiscal year 2009, ended August 31, 2009. “Marked improvement in our sequential performance was aided by cost cutting, increased productivity, market share gains and a more benign end-market environment. Income gains were matched with cash flow generation and balance sheet improvements during the quarter,” said President and CEO Timothy L. Main.
Net revenue for the fourth fiscal quarter of fiscal 2009 was $2.8 billion compared to $3.3 billion for the same period of fiscal 2008. GAAP operating income for the fourth quarter of fiscal 2009 was $43.1 million compared to income of $87.8 million for the same period of fiscal 2008. GAAP net income for the fourth quarter of fiscal 2009 was $5.5 million compared to net income of $57.5 million for the same period of fiscal 2008. GAAP diluted earnings per share for the fourth quarter of fiscal 2009 were $0.03 compared to $0.28 for the same period of fiscal 2008.
Core operating income for the fourth quarter of fiscal 2009 was $65.4 million or 2.3 percent of net revenue compared to $104.7 million or 3.2 percent of net revenue for the fourth quarter of fiscal 2008. Core earnings for the fourth quarter of fiscal 2009 were $33.4 million compared to $61.7 million for the same period of fiscal 2008. Core earnings per diluted share for the fourth quarter of fiscal 2009 were $0.16 compared to $0.30 for the same period of fiscal 2008.
Fiscal Year 2009
Net revenue for the fiscal year was $11.7 billion compared to $12.8 billion for fiscal 2008.
GAAP operating income for fiscal 2009 was a loss of $910.2 million compared to income of $251.4 million for fiscal 2008. GAAP net loss for fiscal 2009 was $1.2 billion compared to net income of $133.9 million for fiscal 2008. GAAP diluted loss per share for fiscal 2009 was $5.63 compared to earnings per share of $0.65 for fiscal 2008.
Jabil’s fiscal 2009 core operating income was $246.8 million or 2.1 percent of net revenue compared to $379.9 million or 3.0 percent of net revenue for fiscal 2008. Core earnings for fiscal 2009 were $132.0 million compared to $231.0 million for fiscal 2008. Core earnings per diluted share for fiscal 2009 were $0.63 compared to $1.12 for fiscal 2008.
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Though its fourth-quarter profit slipped 2% from a year ago, the company reported results that still topped Wall Street expectations, sending its shares soaring 9.5% to $37.42 in pre-market trading Tuesday.
In the just-ended quarter, Walgreen said it earned $436 million, or 44 cents a share, compared with $443 million, or 45 cents a share, a year ago. Analysts expected the company to earn 39 cents a share.
Sales jumped 8% to $15.7 billion from $14.6 billion, while same-store sales increased 2.4%. The drugstore received a boost from higher prescription-drug sales, which rose 4.5% at stores opened at least a year. Front-end same-store sales, however, fell 1.4%.
Last week, rival Rite Aid(RAD Quote) reported yet another loss in its second quarter and lowered its full-year outlook.
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