AbbVie in $21 B Deal with Pharmacyclics, Citi Sells Akbank Stake at a Loss

Mukesh Buch
05 Mar, 2015
New York City

AbbVie agreed to acquire Pharmacyclics for $21 billion. Citigroup divested its 10% stake in Turkey-based Akbank TAS for $1.2 billion at a loss. Costco net surged 29%. Ciena and H & R Block net loss narrowed. Kroger profit rose 2%.

[R]12:30 PM New York – AbbVie agreed to acquire Pharmacyclics for $21 billion. Citigroup divested its 10% stake in Turkey-based Akbank TAS for $1.2 billion at a loss. Costco net surged 29%. Ciena and H & R Block net loss narrowed. Kroger profit rose 2%.[/R]

Tollbooth Index gained 0.4% or 37.16 to 10,741.64.

Earnings Review

AbbVie Inc ((ABBV)) declined 3% or $1.82 to $58.46 after the pharmaceutical research company agreed to acquire cancer biotech Pharmacyclics Inc known for its Imbruvica, treatment for hematologic malignancies, for about $21 billion.

The tender offer is expected to close in mid-2015.

Shares of Pharmacyclics Inc surged 10.5% to $254.78.

Citigroup Inc ((C)) slid 20 cents to $53.47 after the financial service provider divested its stake of 10% in Turkey-based Akbank TAS for $1.2 billion.

Separately Citigroup and MasterCard signed a new and expanded 10-year agreement.

Costco Wholesale Corporation ((COST)) jumped 2.8% or $4.10 to $151.27 after the wholesale club operator reported net sales in the fourth-quarter ending on February 15 jumped 4% to $26.87 billion form a year ago period. Comparable store sales in the quarter increased 2% and in February rose 1%.

Net income in the quarter surged 29.2% to $598 million or $1.35 per diluted share compared to $463 million or $1.05 from the same quarter last year.

The retailer said net sales in February climbed 4% to $8.18 billion from $7.90 billion a year ago period.

Ciena Corporation ((CIEN)) fell 15 cents to $20.44 after the communications networking equipment provider said total revenues in the first-quarter ending in January edged up 0.8% to $533.7 million from a year ago period.

Net loss in the quarter narrowed to $15.9 million or 15 cents per diluted share compared to $18.8 million or 17 cents from the same quarter last year.

H & R Block Inc ((HRB)) dropped 4.6% or $1.52 to $31.90 after the tax and accounting service provider reported total revenues in the third-quarter ending in January soared 154.8% to $509.1 million form a year ago period.

Net loss in the quarter narrowed to $36.95 million or 13 cents per diluted share compared to $214.7 million or 78 cents from the same quarter last year.

Joy Global Inc ((JOY)) plunged 5.9% or $2.47 to $39.66 after the mining equipment maker stated net sales in the first-quarter ending in January declined 16.1% to $703.9 million form a year ago period.

Net income in the quarter tumbled 51.7% to $23.6 million or 24 cents per diluted share compared to $48.9 million or 48 cents from the same quarter last year.

Kroger Co ((KR)) soared 4.9% or $3.41 to $73.06 after the largest independent grocery store operator reported total sales in the fourth-quarter ending in January climbed 8.5% to $25.2 billion form a year ago period. Comparable store sales in the quarter increased 2% and in February rose 1%.

Net income in the quarter rose 2.1% to $518 million or $1.04 per diluted share compared to $422 million or 81 cents from the same quarter last year.