J.C. Penney Sales Plunge 26%, Priceline to Buy Kayak in $1.8 B Deal

Arthi Gupta
09 Nov, 2012
New York City

World markets shift attention to unresolved U.S. and European debt problems after the U.S. elections. Priceline.com agreed to buy Kayak Software in a $1.8 billion cash and stock deal. Moneygram swung to third quarter loss. J.C. Penney quarterly sales drop 26%.

[R]8:10 AM New York – World markets shift attention to unresolved U.S. and European debt problems after the U.S. elections. Priceline.com agreed to buy Kayak Software in a $1.8 billion cash and stock deal. Moneygram swung to third quarter loss. J.C. Penney quarterly sales drop 26%.[/R]

U.S. index futures and global indexes trend lower as law makers jostle for budget negotiations and seek to preserve their favorite projects and delay for one more time the debt reduction targets.

China''s annual consumer price inflation eased to 1.7% in October from 1.9% in September, the National Bureau of Statistics said today.

Food inflation slowed to 1.8% in October from 2.5% in September. Non-food price inflation remained unchanged at 1.7% in October.

China''s industrial production expanded 9.6% annually in October from the 9.2% gain in September, data released by the National Bureau of Statistics showed today.

Separately, China''s total fixed asset investment grew 20.7% annually during the January-October period.

Producer prices fell 2.8% from a year earlier in October after a 3.6% decline in September.

Retail sales rose 14.5% in October from a year earlier following a 14.2% increase in September.

Priceline to Acquire Kayak

Priceline.com Inc, the online travel agency agreed to buy Kayak Software Corp in a $1.8 billion cash and stock deal.

The deal values Kayak at $40 per share, a 29% premium to the company''s closing stock price yesterday and 54% higher than its IPO price.

Priceline will pay about $500 million of the consideration in cash and $1.3 billion in equity and assumed stock options.

Earnings Review

Groupon Inc. ((GRPN)), the daily deal Web site reported third quarter revenues increased 32% annually to $568.6 million. Net loss in the quarter narrowed to $3 million or breakeven per share from $54.2 million or 18 cents per share last year.

J. C. Penney Company, Inc. ((JCP)), the retailer reported third quarter total net sales declined 26.6% to $2.93 billion from last year on comparable store sales decline of 26.1%. Net loss in the quarter narrowed to $123 million or 56 cents per diluted share from net loss of $143 million or 67 cents per share last year.

Moneygram International Inc. ((MGI)), the payment services company reported third quarter total revenue rose 5% to $338.55 million from the same quarter a year earlier. Net loss in the quarter swung to $54.76 million or 77 cents per diluted share compared to net income of $15.83 million or 22 cents per share last year.

Nordstrom, Inc. ((JWN)), the fashion specialty retailer reported third quarter sales grew 13.8% to $2.71 billion from last year on same-store sales rise of 10.7%. Net profit in the quarter improved 15% to $146 million or 71 cents per diluted share from $127 million or 59 cents per share last year.