U.S. Movers: Cisco, Lowe

Mukesh Buch
19 Nov, 2012
New York City

Cisco agreed to buy Meraki Inc. for $1.2 billion in cash. Medtronic purchased China based Kanghui Holdings for $755 million. Lowe

[R]10:25 AM New York – Cisco agreed to buy Meraki Inc. for $1.2 billion in cash. Medtronic purchased China based Kanghui Holdings for $755 million. Lowe’s third quarter net surged 76%. Tyson Foods quarterly net climbed 91%. Wright Medical agreed to acquire BioMimetic for $380 million.[/R]

Cisco Systems, Inc. ((CSCO)) gained 1.1% or 20 cents to $18.20 after the network equipments maker said it intent to acquire a cloud networking solution provider and privately held Meraki Inc. for $1.2 billion in cash. The acquisition is expected to close in second quarter of Cisco’s fiscal year 2013.

Medtronic Inc ((MDT)) increased 1.1% or 48 cents to $41.58 after the medical equipments maker agreed to acquire China based orthopedic devices maker Kanghui Holdings valued $755 million.

Lowe’s Companies, Inc ((LOW)) climbed 7.4% or $2.37 to $34.34 after the home improvement retailer said sales in the third quarter ending on November 2 grew 2% to $12.1 billion from $11.9 billion in the same period of last year. Comparable store sales for the quarter increased 1.8%.

Net earnings in the quarter surged 76% to $396 million or 35 cents a diluted share compared to $225 million or 18 cents a share a year ago earlier.

Lowe’s expects total sales to increase 2% and comparable store sales to increase about 1% and diluted earnings per share of approximately $1.64.

Tyson Foods, Inc. ((TSN)) jumped 7.2% or $1.22 to $18.10 after the food processing company reported sales in the fourth quarter ending on September 29 slid 0.4% to $8.37 billion from $8.40 billion in the same period of last year. Net earnings in the quarter climbed 91% to $185 million or 51 cents a diluted share compared to $97 million or 26 cents a share a year ago.

The company expects fiscal 2013 sales to increase to approximately $35 billion.

The Laclede Group, Inc ((LG)) slipped 14 cents to $38.61 after the natural gas distributor stated sales in the fourth quarter ending on September 30 declined 37% to $169.5 million from $271 million in the same period of last year. Net loss in the quarter narrowed to $0.7 million or 3 cents a diluted share compared to $2.9 million or 13 cents a share a year ago.

Total S.A., the France based integrated international oil and gas explorer has signed a deal with China Petrochemical Corporation for approximately $2.5 billion in cash. The agreement is subject to approval of Nigerian authorities.

Wright Medical Group, Inc. ((WMGI)) slumped 19 cents to $19.82 after the orthopedic medical device maker agreed to purchase BioMimetic Therapeutics Inc for up to $380 million in cash or $12.97 per share, Wright''s closing stock price o Friday. The transaction is expected to close in first quarter of 2013.