Humana Divests Concentra for $1 B, Kansas City Declines

Mukesh Buch
23 Mar, 2015
New York City

Airgas lowered its earnings per share forecast. FMSA net and revenues surged. Humana divested its subsidiary Concentra to MJ Acquisition for $1.05 billion and reiterated earnings outlook. Kansas City Southern plunged on lower revenues guidance. Veritiv net loss widened.

[R]12:20 PM New York – Airgas lowered its earnings per share forecast. FMSA net and revenues surged. Humana divested its subsidiary Concentra to MJ Acquisition for $1.05 billion and reiterated earnings outlook. Kansas City Southern plunged on lower revenues guidance. Veritiv net loss widened.[/R]

Tollbooth Index gained 0.3% or 33.63 to 10,612.97.

Earnings Review

Airgas, Inc ((ARG)) slipped 1.1% or $1.16 to $106.12 after the industrial, medical and specialty gases supplier lowered its earnings per share forecast for the fourth-quarter in the range of $1.13 to $1.16 from earlier guidance of $1.25 to $1.30.

FMSA Holdings Inc ((FMSA)) jumped 2.9% or 16 cents to $5.58 after the oilfield service provider said revenues in the fourth-quarter ending in December soared 28.9% to $353.4 million from a year ago period.

Net income in the quarter surged 127.4% to $40.7 million or 23 cents per diluted share compared to $17.9 million or 6 cents from the same quarter last year.

Humana Inc ((HUM)) fell 28 cents to $182.51 after the health insurance company agreed to divest its wholly-owned subsidiary Concentra, the occupational health services provider to MJ Acquisition Corporation for $1.05 billion in cash.

The transaction is expected to close in the second-quarter.

Humana reiterated earnings-per-share for the year between $8.50 and $9.

Kansas City Southern plunged 8.1% or $9.33 to $106.36 after the transportation company reduced revenue guidance for the year to lower single-digit percentage range from fiscal 2014 from previous estimate of mid single-digit growth.

For the first-quarter, the company said lower natural gas prices and negative impact of coal business may leads revenues in energy to drop 10% and 20% decline in coal business.

Veritiv Corp ((VRTV)) fell 18 cents to $47.68 after the print, packaging services provider reported net sales in the fourth-quarter ending in December climbed 106.9% to $2.38 million from a year ago period.

Net loss in the quarter widened to $14 million or 88 cents per diluted share compared to $1.8 million or 23 cents from the same quarter last year.