U.S. Movers: BlackRock, Campbell Soup, Eaton, Lowe

Mukesh Buch
21 May, 2012
New York City

Campbell Soup third quarter net slipped 5.3% to $177 million. Chinese conglomerate to acquire AMC for $2.6 billion. Eaton acquired Cooper Industries for $11.8 billion. Lowe

[R]11:25 AM New York – Campbell Soup third quarter net slipped 5.3% to $177 million. Chinese conglomerate to acquire AMC for $2.6 billion. Eaton agreed to acquire Cooper Industries for $11.8 billion. Lowe’s third quarter net soared 14.3% to $527 million. Yahoo agreed to sell its 20% stake of Alibaba for $7.1 billion.[/R]

Alibaba buys back 20% stake of Yahoo for $7.1 billion.

AMC Entertainment Inc., the movie theater chain said China’s conglomerate, Dalian Wanda Group Co. Ltd. reached an agreement to acquire company’s 5,034 screens in 346 multiplexes in the U.S. and Canada for $2.6 billion.

BlackRock, Inc. ((BLK)) fell 73 cents to $171.18 after the investment company said Barclays PLC intends to sell its stake of full investment of $6.1 billion Barclays will sell its stake in an underwritten public secondary offering. BlackRock intends to repurchase $1 billion of common stock directly from Barclays.

Campbell Soup Company ((CPB)) decreased 2.3% or 78 cents to $32.62 after the food products maker reported third quarter revenue nearly flat to $1.82 billion compared to $1.81 billion in the same period last year. Net earnings in the quarter slipped 5.3% to $177 million or 55 cents per diluted share compared to $187 million or 57 cents per share a year ago.

Campbell expects fiscal 2012 net sales growth to be between 0% and 2% and adjusted earnings will be in the range of $2.35 to $2.42.

DaVita Inc. ((DVA)) rose 35 cents to $81.16 after the dialysis service provider and medical services provider HealthCare Partners agreed to merge for $4.42 billion, consisting of $3.66 billion in cash and approx 9.38 million in common stocks. The agreement expected close in early fourth quarter of this year.

Eaton Corporation ((ETN)) increased 1.7% or 72 cents to $73.12 after the diversified industrial manufacturer will acquire Ireland registered Cooper Industries plc ((CBE)) electrical equipment supplier for $11.8 billion. Cooper Shareholders will receive $39.15 in cash and 0.77479 shares total valued at $72.00 per share in the merged company and Eaton Shareholders will receive one share of the new company for each share of Eaton.

The transaction is expected to close in the second half of 2012 and the newly formed company is expected to be called Eaton Global Corporation Plc and expected to be headquartered in Ireland.

Krispy Kreme Doughnuts, Inc. ((KKD)) advanced 8.1% or 49 cents to $6.50 after the doughnuts retailer reported first quarter revenue rose 3.7% to $108.5 million compared to $104.6 million in the same period last year. Same store sales grew 2.1%. Net income in the quarter declined 34% to $6 million or 8 cents per diluted share compared to $9.2 million or 13 cents per share a year ago earlier.

Lowe’s Companies, Inc ((LOW)) dropped 9.5% or $2.71 to $25.77 after the home improvement retailer reported third quarter sales increased 7.9% to $13.2 billion compared to $12.2 billion in the same period last year. Net earnings in the quarter soared 14.3% to $527 million or 43 cents per diluted share compared to $461 million or 34 cents per share a year ago.

For the year total sales are expected to increase 1% to 2% and comparable store sales to increase 1% to 3%. Diluted earnings for the fiscal year 2013 expected per share of $1.73 to $1.83.

Mobile TeleSystems OJSC ((MTB)) increased 1.9% or 31 cents to $16.0 after the Russia based telecommunication service provider reported first quarter revenues grew 2.7% to $3.01 billion compared to $2.93 billion in the same period last year. Net income in the quarter surged 59.1% to $511.7 million or 26 cents per diluted share compared to $321.6 million or 17 cents per share a year ago.

Tech Data Corporation ((TECD)) gained 2.9% or $1.42 to $48.88 after the computer hardware and software wholesaler reported first quarter net sales decreased 7% to $5.90 billion compared to $6.33 billion in the same period last year. Net income in the quarter rose 6.1% to $51.7 million or $1.24 per diluted share compared to $48.7 million or $1.03 per share a year ago period.

For the second quarter of fiscal year 2013 the company expects sales relatively consistent on a sequential basis and anticipated decline in sales from a year ago.

Tidewater Inc. ((TDW)) gained 3.9% or $1.77 to $47.16 after the offshore energy services provider reported fourth quarter revenue increased 14% to $289.4 million compared to $254.0 million in the same period last year. Net earnings in the quarter surged 180% to $33.6 million or 66 cents per diluted share compared to $12.0 million or 23 cents per share a year ago quarter.

Sales for the full year rose 2% to $1.07 billion from $1.05 billion a year ago. Net income for the year plunged 17.2% to $87.4 million or $1.70 per diluted share from $105.6 million or $2.05 per share in the prior year.

Yahoo Inc. ((YHOO)) increased 1.1% or 17 cents to $15.59 after the online contents provider agreed to sell off about half of its stake in Alibaba Group Holding Ltd. in a deal worth $7.1 billion, consisting of $6.3 billion in cash and $800 million in newly issued Alibaba preferred stock.