Dynegy Acquires Power Plants for $6.3 B; Gap, Ross, Salesforce Jump

Mukesh Buch
22 Aug, 2014
New York City

Dynegy agreed to acquire coal and gas assets from Duke Energy and Energy Capital Partners for $6.3 billion. Foot Locker net soared 39%. Gap profit jumped 10%. Hibbett Sports net plunged 20%. Nordson fell 2%. Ross Stores net soared 12%. Salesforce.com net swung to a loss.

[R]12:05 PM New York – Dynegy agreed to acquire coal and gas assets from Duke Energy and Energy Capital Partners for $6.3 billion. Foot Locker net soared 39%. Gap profit jumped 10%. Hibbett Sports net plunged 20%. Nordson fell 2%. Ross Stores net soared 12%. Salesforce.com net swung to a loss.[/R]

Tollbooth Index slid 0.1% or 13.55 to 9,501.14.

Earnings Review

Dynegy Inc ((DYN)) surged 9.2% or $2.73 to $32.45 after the power company signed two separate agreements to acquire 12,500 megawatts of coal and gas generation assets from Duke Energy Corp and Energy Capital Partners in deals valued at $6.25 billion.

The company intends to issue new unsecured bonds worth about $5 billion and equity and equity-linked securities for $1.25 billion.

The transactions are expected to close by the end of the first quarter 2015.

Foot Locker, Inc. ((FL)) jumped 2.9% or $1.55 to $54.12 after the shoes and apparel retailer stated total sales in the second-quarter ending on August 2 climbed 12.9% to $1.64 billion from a year ago period. Comparable store sales in the quarter climbed 7%.

Net income in the quarter climbed 39% to $92 million or 63 cents a diluted share compared to $66 million or 44 cents from a same quarter last year.

GameStop Corp. ((GME)) soared 5.7% or $2.29 to $42.78 after the video game retailer stated total sales in the second-quarter ending on August 2 soared 25% to $1.73 billion from a year ago period. Comparable store sales in the quarter surged 21.9%.

Net income in the quarter surged 134% to $24.6 million or 22 cents a diluted share compared to $10.5 million or 9 cents from a same quarter last year.

The Gap, Inc ((GPS)) climbed 4.7% or $2.04 to $45.22 after the specialty apparel retailer reported net sales in the second-quarter ending on August 2 increased 3% to $3.98 billion from a year ago period. Comparable store sales in the quarter were flat.

Net income in the quarter jumped 10% to $332 million or 75 cents a diluted share compared to $303 million or 64 cents from a same quarter last year.

Hibbett Sports, Inc. ((HIBB)) fell 32 cents to $46.51 after the sport goods retailer stated net sales in the second-quarter ending on August 2 increased 4.1% to $193.9 million from a year ago period. Comparable store sales in the quarter increased 0.1%.

Net income in the quarter plunged 20% to $8.4 million or 51 cents a diluted share compared to $10.5 million or 52 cents from a same quarter last year.

Nordson Corporation ((NDSN)) slid 8 cents to $79.50 after the testing and inspection equipment maker said net sales in the third-quarter ending in July climbed 14% to $459 million from a year ago period. Comparable store sales in the quarter decreased 0.5%.

Net income in the quarter fell 2.4% to $77.9 million or $1.21 a diluted share compared to $65.4 million or $1.01 from a same quarter last year.

Ross Stores, Inc. ((ROST)) soared 5.4% or $3.70 to $72.98 after the off-price apparel and home goods retailer stated net sales in the second-quarter ending on August 2 climbed 7% to $2.73 billion from a year ago period. Comparable store sales in the quarter grew 2%.

Net income in the quarter jumped 12% to $239.6 million or $1.14 a diluted share compared to $213.1 million or 98 cents from a same quarter last year.

Salesforce.com, Inc. ((CRM)) advanced 8.1% or $4.50 to $60.21 after the cloud computing service provider reported revenue in the second-quarter ending in July surged 38% to $1.32 billion from a year ago period.

Net in the quarter swung to a loss $61.1 million or 10 cents a diluted share compared to profit $76.6 million or 12 cents from a same quarter last year.