U.S. Movers: Chesapeake Energy, Mediware, Texas Instruments, Xyratex

Mukesh Buch
12 Sep, 2012
New York City

Chesapeake Energy sells its assets to Shell and Chevron for $6.9 billion. Globecomm lowered fiscal outlook. Mediware agreed to go private. PMFG net swung to loss. Texas Instruments lowered third quarter guidance.

[R]10:40 AM New York – Chesapeake Energy sell its assets to Shell and Chevron for $6.9 billion. Globecomm lowered fiscal outlook. Mediware agreed to go private. PMFG net swung to loss. Texas Instruments lowered third quarter guidance.[/R]

Chesapeake Energy Corporation ((CHK)) gained 10 cents to $20.20 after the oil and gas explorer made multiple agreements for most of its Permian Basin properties to SWEPI LP, a subsidiary of Royal Dutch Shell Plc and Chevron Corp. and a majority of its pipeline assets for total net cash proceeds of $6.9 billion in cash.

The company will use the proceeds to repay $4 billion of term loans during the fourth quarter and the transactions are expected to close during the third and fourth quarters.

Globecomm Systems Inc. ((GCOM)) plunged 18.6% or $2.45 to $10.85 after the communication solution provider reported total revenues in the fourth quarter ending in June soared 19% to $104.8 million from $88.3 million in the same period of last year. Net income in the quarter surged more than three-fold to $7.1 million or 31 cents per diluted share compared to $2.2 million or 10 cents per share a year ago earlier.

The company expects consolidated revenues for the fiscal 2013 between $340 and $360 million and earnings per diluted share in the range of 66 cents to 76 cents.

Mediware Information Systems, Inc. ((MEDW)) surged 38.7% or $6.10 to $21.85 after the software company agreed to go private in a leveraged buyout from Thoma Bravo, LLC valued for $195 million or $22 a share, 40% premium from closing price on yesterday.

PMFG, Inc. ((PMFG)) tumbled 18.7% or $1.51 to $6.56 after the technical products provider reported total revenues in the fourth quarter ending in June slid 4% to $33 million from $34.6 million in the same period of last year. Net loss in the quarter swung to $0.92 million or 4 cents per diluted share compared to net income of $0.28 million or 3 cents per share a year ago period.

The Company expects consolidated revenue in fiscal 2013 to grow between 13% and 18%.

Texas Instruments Inc. ((TXN)) slid 6 cents to $28.52 after the chip maker lowered its guidance for the third quarter revenue to between $3.27 billion and 3.41 billion from prior range of $3.21 billion to 3.47 billion and earnings per share in the range of 38 cents to 42 cents from prior range of 34 cents to 42 cents.

TRC Companies, Inc ((TRR)) declined 8.5% or 66 cents to $7.04 after the consulting company reported total revenues in the fourth quarter ending in June advanced 17% to $109.7 million from $94 million in the same period of last year. Net income in the quarter swung to $5.8 million or 20 cents per diluted share compared to net loss of $15.5 million or 57 cents per share a year ago earlier.

Xyratex Ltd ((XRTX)) dropped 10.5% or $1.13 to $9.61 after the hard disk drive provider lowered its third quarter revenue expectations between $271 million and $276 million from previous guidance of $313 million to $373 million and gross margin to be between 18% and 18.5%.

The company lowered outlook for the third quarter on reduced demand from a number of large OEM customers.