U.S. Movers: Citigroup, Gannett, Glaxo, Thermo Fisher, Visa, MasterCard

Mukesh Buch
16 Jul, 2012
New York City

Citigroup second quarter net declined 12% to $2.9 billion and Gannett net plunged 21%. Glaxo offered $3.6 billion for Human Genome. Thermo Fisher agreed to buy One Lambda for $925 million in cash. Visa and MasterCard settle class action lawsuits.

[R]11:30 AM New York – Citigroup second quarter net declined 12% to $2.9 billion and Gannett net plunged 21%. Glaxo offered $3.6 billion for Human Genome. Thermo Fisher agreed to buy One Lambda for $925 million in cash. Visa and MasterCard settle class action lawsuits.[/R]

Citigroup Inc. ((C)) increased 1.9% or 51 cents to $27.16 after the holding company reported total revenue in the second quarter ending in June slumped 10% to $18.6 billion compared to $20.6 billion in the same period last year. Net income in the quarter declined 12% to $2.9 billion or 95 cents per diluted share compared to $3.3 billion or $1.09 per share a year ago.

The bank said second quarter results included net loss of $424 million from the previously announced sale of a 10.1% stake in Akbank T.A.S.

Gannett Co., Inc. ((GCI)) gained 3.9% or 56 cents to $14.89 after the media and marketing company reported total revenue in the second quarter ending on June 24 fell 2.1% to $1.31 billion compared to $1.33 billion in the same period last year. Net income in the quarter plunged 20.9% to $120.0 million or 51 cents per diluted share compared to $151.5 million or 62 cents per share a year ago earlier.

GlaxoSmithKline plc ((GSK)) rose 20 cents to $45.20 after the UK based healthcare group revised offer for Human Genome Sciences and will pay $14.25 per share from its previous offer of $13 per share and will gains full ownership for some dugs that use for atherosclerosis.

Total transaction valued at about $3.6 billion in cash which represents premium of 99% of HGS’s closing price of $7.17 per share on April 18.

J2 Global Inc. ((JCOM)) advanced 8.3% or $2.20 to $28.43 after the cloud services provider estimated second quarter earnings per share between 66 cents and 68 cents on revenues between $88.8 million and $89.5 million.

Par Pharmaceutical Companies, Inc. ((PRX)) surged 37.2% or $13.62 to $50.20 after the holding company agreed to be acquired by an affiliate of TPG in a transaction with an equity value of $1.9 billion.

Under the deal shareholders of Par will receive $50 in cash for each share of Par common stock, representing a premium of approximately 37% over the closing share price on July 13.

Thermo Fisher Scientific Inc ((TMO)) fell 16 cents to $51.88 after the medical equipments maker agreed to buy transplant diagnostics company One Lambda for $925 million in cash. The transaction is expected to be completed in fourth quarter of this year. Thermo Fisher also announced today to repurchase of additional $500 million of shares of its own common stock.

United Parcel Service, Inc ((UPS)) slid 41 cents to $79.03 after the courier company proposed acquisition of TNT Express N.V. is expected to move to a Phase II to review certain areas that require more time to analyze and the deal is expected to be completed in the fourth quarter of 2012.

Visa Inc. ((V)) gained 3.4% or $4.28 to $128.36 after the payment processor and the U.S. have enter into a settlement agreement to resolve the class plaintiffs'' claims in the multi-district interchange litigation and also reached an agreement in principle to resolve the claims brought against Visa by a group of individual retailers.

For the quarter ending June 30, Visa intends to record litigation charge of about $4.1 billion that will increase total FAS 5 reserve for litigation covered by retrospective responsibility plan from $285 million to approx $4.4 billion.

MasterCard Inc ((MA)) increased 3% or $12.85 to $442.45.

Woodward Inc. ((WWD)) plunged 8.5% or $3.08 to $32.98 after the control solutions manufacturer in its preliminary results for the third quarter stated net sales are expected to be approximately $460 million and fully diluted earnings per share approximately 40 cents per share.