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2 Stocks Fall Thursday

- By Omar Venerio

Shares of Tile Shop Holdings Inc. (TTS) fell more than 4% on Thursday after announcing third-quarter results. The company posted earnings of 5 cents per share on $89.26 billion in revenue, a 5.7% year-over-year growth. It beat earnings estimates by 1 cent and revenue expectations by $2.14 million.

During the quarter, the g ross profit increased $6.3 million, or 11.2%, to $63 million from $56.7 million a year ago . The gross margin was 70.6%, up from 67.1% in the prior-year quarter. The improvement was due to a d ecline in promotional activity.


Adjusted earnings before interest, taxes, depreciation and amortization for the third quarter was $11.9 million, compared with $12.2 million in the year-ago quarter .

Further, th e board of directors declared a quarterly dividend of 5 cents per common share.

Looking ahead , the company updated its annual outlook. It expects 2018 capital investments of $35 million and i nventory between $106 million and $110 million.

Shares of Textron Inc. (TXT) plunged 11 % after posting th ird -quarter earnings of 61 cents per share on $ 3 . 2 b illion in revenue, an 8 % year-over-year decline.

By segment, r evenues at Textron Aviation were $1.1 billion , down 2% due to lower volume and mix, reflecting lower turboprop volume . Bell revenues were $770 million, down 5% primarily due to commercial mix despite higher military revenues. Sales at Textron Systems were $352 million, down from $458 million last year, reflecting lower TAPV deliveries at Textron Marine & Land Systems and lower volume in the Simulation, Training and Other product lines. Industrial revenues d eclined $112 million and the Finance segment's sales were down $3 million .

The company now expects full-year earnings per share between $4.81 and $4.91, or $3.20 to $3.30 on an adjusted basis. It also reaffirmed its full-year manufacturing cash flow before pension contributions in the range of $750 million to $850 million.

D isclosure: The author holds no positions in any stocks mentioned .

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This article first appeared on GuruFocus.