Horton, MeadWestvaco Climb; Seagate, Grainger Decline

Mukesh Buch
26 Jan, 2015
New York City

D.R. Horton net climbed 16%. MeadWestvaco net tumbled 92% and agreed to merge with the rival Rock-Tenn. Norfolk revenues and net fell. Post Holdings climbed on positive outlook. Roper net soared 12%. Rock-Tenn net climbed 14%. Seagate profit surged 118%.

[R]11:50 AM New York – D.R. Horton net climbed 16%. MeadWestvaco net tumbled 92% and agreed to merge with the rival Rock-Tenn. Norfolk revenues and net fell. Post Holdings climbed on positive outlook. Roper net soared 12%. Rock-Tenn net climbed 14%. Seagate profit surged 118%.[/R]

Tollbooth Index edged down 0.08% or 8.12 to 10,145.94.

Earnings Review

D.R. Horton, Inc ((DHI)) surged 6.4% or $1.48 to $24.58 after the homebuilder reported revenues in the first-quarter ending in December surged 38% to $2.3 billion from a year ago period.

Net income in the quarter climbed 16% to $142.5 million or 39 cents a diluted share compared to $123.2 million or 36 cents from the same quarter last year.

MeadWestvaco Corp climbed 17.7% or $7.96 to $53.01 after the packaging company announced net sales in the fourth-quarter ending in December jumped 4.6% to $1.37 billion from a year ago period.

Net income in the quarter tumbled 92.2% to $53 million or 31 cents a diluted share compared to $677 million or $3.77 from the same quarter last year.

Norfolk Southern Corp ((NSC)) rose 64 cents to $105.42 after the rail transportation company said revenues in the fourth-quarter ending in December slid 0.3% to $2.87 billion from a year ago period.

Net income in the quarter fell 0.4% to $511 million compared to $513 million and diluted earnings per share were flat at $1.64 from the same quarter last year.

Post Holdings Inc soared 7.3% or $3.04 to $44.48 after the packaged food maker plans to acquire privately held rival MOM Brands Co for about $1.15 billion in cash and stock.

The cereal maker forecasted adjusted EBITDA for the year in the range of $540 million and $580 million.

Separately, the company said preliminary net sales in the first-quarter ending in December of about $1.07 million and adjusted operating earnings between $126 million and $128 million.

Roper Industries, Inc ((ROP)) climbed 3.5% or $5.24 to $154.94 after the medical and industrial equipment maker stated net sales in the fourth-quarter ending in December jumped 6.4% to $946.1 million from a year ago period.

Net income in the quarter soared 12.2% to $185.9 million or $1.84 a diluted share compared to $165.7 million or $1.65 from the same quarter last year.

Rock-Tenn Company jumped 2.4% or $1.51 to $64.50 after the packaging company and MeadWestvaco Corporation agreed to merger and form a combined company of $16 billion.

The packaging company reported said net sales in the first-quarter ending in December soared 6.4% to $2.51 billion from a year ago period.

Net income in the quarter climbed 14% to $125.1 million or 88 cents a diluted share compared to $109.7 million or 75 cents from the same quarter last year.

The company estimate net sales of about $15.7 billion and adjusted EBITDA of $2.9 billion.

Seagate Technology Plc plunged 10.7% or $6.88 to $57.09 after the Ireland-based storage device maker reported revenues in the second-quarter ending on January 2 jumped 4.8% to $3.70 billion from a year ago period.

Net income in the quarter surged 118% to $933 million or $2.78 a diluted share compared to $428 million or $1.24 from the same quarter last year.

W W Grainger Inc ((GWW)) declined 3% or $7.42 to $238.57 after the maintenance and repairing service provider said net sales in the fourth-quarter ending in December increased 5.5% to $2.51 billion from a year ago period.

Net income in the quarter slumped 5% to $148.8 million or $2.14 a diluted share compared to $156.7 million or $2.20 from the same quarter last year.