U.S. Movers: AutoNation, Salesforce.com, Vanguard Natural, WellPoint

Mukesh Buch
04 Jun, 2012
New York City

AutoNation May sales surged 45% and the retailer Conn''s lifted its annual outlook. Salesforce.com agreed to acquire Buddy Media for $689 million and Vanguard Natural agreed to acquire energy assets for $445 million. WellPoint offered $900 million in cash for 1-800 Contacts.

[R]11:30 AM New York – AutoNation May sales surged 45% and the retailer Conn''s lifted its annual outlook. Salesforce.com agreed to acquire Buddy Media for $689 million and Vanguard Natural agreed to acquire energy assets for $445 million. WellPoint offered $900 million in cash for 1-800 Contacts.[/R]

AutoNation ((AN)) rose 32 cents to $35.32 after the automotive retailer said its new vehicle retail sales in May surged 45% to 23,763 units compared to a year ago month. Premium luxury vehicle sales increased 23% last month, and import sales surged 78% and domestic maker sales rose 21%.

Conn’s, Inc. ((CONN)) slipped 3.2% or 57 cents to $17.14 after the consumer products retailer reported net revenues in the first quarter ending in April increased 4.6% to $200.9 million compared to $192.0 million in the same period last year. Same store sales increase 17.8%.

Net income in the quarter surged 163.6% to $11.6 million or 35 cents per diluted share compared to $4.4 million or 14 cents per share a year ago earlier.

The retailer increased earnings guidance for the fiscal year ending January to $1.30 to $1.40 per share and same stores sales up mid- to high-single digits.

Calavo Growers, Inc. ((CVGW)) declined 7.4% or $2.03 to $25.15 after the food processing company reported net revenues in the second quarter ending in April increased 17% to $139.0 million compared to $118.7 million in the same period last year. Net income in the quarter increased 6% to $2.55 million or 17 cents per diluted share compared to $2.40 million or 16 cents per share a year ago earlier.

Salesforce.com, Inc. ((CRM)) decreased 1.1% or $1.48 to $129.51 after the cloud computing solution provider agreed to acquire Buddy Media for $689 million. These comprised $467 million in cash, $184 million in common stock and $38 million in the company’s vested options and restricted stock The transaction is expected to complete during company’s fiscal third quarter ending October 31.

Vanguard Natural Resources, LLC ((VNR)) fell 19 cents to $23.10 after the acquisition and developer of oil and natural gas agreed to acquire natural gas and liquids assets in the Woodford Shale and Fayetteville Shale of the Arkoma Basin for $445 million. The Company anticipates closing this acquisition on or before end of this June.

WellPoint, Inc. ((WLP)) slides 1% or 72 cents to $65.64 after the health insurer agreed to buy 1-800 Contacts Inc. a direct-to-consumer retailer of contact lenses. The WellPoint did not disclose the financial terms of transaction but according to the media reports the all cash deal is valued at $900 million and the acquisition is expected to close in the third quarter.