National Security Group (NASDAQ:NSEC) estimates losses from Hurricane Florence will cut Q3 after-tax earnings by $790,000 to $1.19M, or 31 cents-47 cents per share.
Ultimate gross losses from the hurricane are expected to be $1M-$1.5M, based on analysis of historical reporting patterns, preliminary post-event model output, and assessment of early reports of claims to date.
Based on those estimates NSEC doesn't expect losses from the storm to exceed its per-event retention level under its catastrophe reinsurance program.
Steelcase (SCS +18.9%) reports Q2 sales increase 8% Y/Y on an organic basis led by all growth across Americas & EMEA due to strong project business from both large and small customers; orders increases 12%
Sales by segment: Americas: $654.1M (+9% organic); EMEA: $133.2M (+11%).
Operating margin expanded 110bps to 7.8%; Gross margin was down 20bps to 33% due to higher commodity and freight costs.
Outlook: Q3 sales of ~$885M-915M; diluted EPS between $0.28-$0.33 ($1.10-$1.15 for FY19).
Jefferies Group, a unit of Jefferies Financial Group (NYSE:JEF), reports fiscal Q3 net earnings fell 28% from a year ago as net revenue declined 2.9%.
Compared with Q2, net earnings sank about 39% on a 5.5% drop in net revenue during the same period, partly from the usual summer slowdown.
Q3 pretax operating margin narrowed to 11.2% from 14.8% in Q2 and 15.3% in Q3 2017.
Q3 investment banking revenue fell to $465.3M from $475.7M a year ago and $500.3M in Q2. Advisory activity levels were also more muted in Q3, the company said.
"Our fourth quarter investment banking backlog is higher than that of any recent periods, and reflects the investments we have made to broaden and deepen our team and capabilities," says Chairman and CEO Rich Handler.
Q3 net revenue was $777.6B vs. $822.6M in Q2 and $800.7M in Q3 2017.
Net earnings fell to $60.2M from $98.0M in Q2 and $83.8M in Q3 2017.
Micron says it believes its stock is undervalued and will use cash flow to support and accelerate its buyback program.
The company plans to start growing SSD share again in 2020 and calls next year a transition year.
In Q4, DRAM accounted for 70% (Q3: 71%) of revenue with relatively flat ASPs. Industry DRAM is tracking slightly above 20% with Micron growing in-line.
NAND was 26% of revenue (+15% Q/Q) with ASPs down in the mid-teens percent range, lower than expected decline. (This could prove negative for Samsung (OTC:SSNLF), (NYSE:WDC) and Seagate (NASDAQ:STX)).
Q1 guidance includes downside revenue from $7.9B to $8.3B (consensus: $8.4B) and downside EPS of $2.87 to $3.02 (consensus: $3.06). Gross margins expected to be lower than Q4 levels or from 57% to 60%.
Pier 1 Imports (NYSE:PIR) issues preliminary Q2 results. The company expects to report a comparable sales decrease of ~11.4% for the quarter and a loss of $0.62 to $0.64 per share vs. -$0.55 consensus.
CEO update: "Our marketing program did not drive the level of traffic we had anticipated, and we experienced delays in getting certain new products into our stores. Although we now expect sales to turn positive and accelerate later than planned, we are encouraged by early signs of improvement in some of our key customer metrics in recent weeks, including conversion and growth in new, retained and reactivated customers.
Pier 1 Imports says it's "discontinuing" FY19 guidance at this time.
United Natural Foods (NASDAQ:UNFI) reports 28% revenue growth for its supernatural customer channel to outpace by a wide margin the 5.7% increase for the independents customer channel and 1.1% rise for the supermarkets channel.
Gross margin fell 125 bps to 14.5% of sales during the quarter.
CEO update: "Our results reflected the impact of customer mix shift and higher than anticipated freight costs, while improvement in our working capital has resulted in record free cash flow for the quarter."
The Company expects that its existing cash and cash equivalents, along with existing funding arrangements, will be sufficient to fund operating expenses and capital expenditure requirements through 30 September 2019.
Darden Restaurants (NYSE:DRI) reports same-restaurant sales increased 3.3% in FQ1.
Same-restaurant sales by chain: +5.3% for Olive Garden, -4.0% for Cheddar's Scratch Kitchen, +3.1% for LongHorn Steakhouse, +0.6% for Yard House, +3.9% for The Capital Grille, -1.9% for Seasons 52, +3.0% for Eddie V's, +1.1% for Bahama Breeze.
Segment profit was up 10% for the Olive Garden and LongHorn Steakhouse businesses during the quarter.
Looking ahead, the company sees FY19 revenue growth of +5.0% to +5.5% vs. +4.0% to +5.0% prior. Darden also expects FY19 EPS of $5.52 to $5.65 vs. $5.40 to $5.56 prior forecast and $5.54 consensus estimate.
Shares of Darden are up 1.79% in premarket trading to $120.00.