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Carmax and Darden Reporting; Oracle Tumbles on Earnings

Dan Berman
Hot Stock Minute
Carmax and Darden Reporting; Oracle Tumbles on Earnings

First up is Darden (DRI) restaurants, which just has just reported earnings. The company made $1.01 a share missing estimates by 3-cents, though its revenues actually beat the forecast. Sales were up 11% for the quarter, helped by aggressive promotions and new menu items at Olive Garden and Red Lobster. Shares of Darden are up 13-% this year, now outperforming the larger markets.

Next up is Carmax (KMX), which will be reporting in just a little while. The stock dropped more than 6% in yesterday's massive selloff. Carmax is expected to post earnings of 58-cents a share up from 52-cents a year ago on a sharp rise in revenue. The company has been in high gear, having posted back-to-back quarters of double-digit growth in both sales and profit. Even with yesterday's losses shares of Carmax are up 60% over the last year.

Now we look at Oracle (ORCL), which has been down more than 8% in early trading. Oracle released its quarterly report after yesterday's closing bell. Excluding items it matched on earnings at 87-cents a share. That was up from 69-cents a year ago, but revenue fell short at $10.9 billion. The company is blaming weak sales in Asia and Latin America. But also of concern is the shift to cloud computing. Even before this morning's drop, shares were down 4% this year, largely because of a plunge after the company's last earnings report. By the way Oracle also announced yesterday that it will be moving over the NYSE in July.

Finally there's Discover (DFS), which was originally supposed to report earnings on Monday but is now set to release the numbers today. Analysts expect the company to post profits of $1.14 a share up from a buck a year ago on sales just topping $2 billion. Last week Oppenheimer labeled Discover an outperform saying the company has managed to diversify its lending during a period of slow credit growth.