CVS Health in $13 B Deal with Omnicare; Best Buy Climbs, NetApp Plunges

Mukesh Buch
21 May, 2015
New York City

CVS Health agreed to acquire Omnicare for $12.7 billion. Cato net jumped 4%. Best Buy net plunged 72%. Buckle profit declined 10%. Dollar Tree net plunged 50%. L Brands profit surged 60%. NetApp net plummeted 32%. Salesforce net swung to profit.

[R]12:15 PM New York – CVS Health agreed to acquire Omnicare for $12.7 billion. Cato net jumped 4%. Best Buy net plunged 72%. Buckle profit declined 10%. Dollar Tree net plunged 50%. L Brands profit surged 60%. NetApp net plummeted 32%. Salesforce net swung to profit.[/R]

Tollbooth Index gained 0.4% or 42.63 to 10,833.36.

Earnings Review

Best Buy Co Inc ((BBY)) climbed 5.3% or $1.81 to $35.59 after the multi-channel retailer said total revenues in the first-quarter ending on May 2 fell 0.9% to $8.6 billion from a year ago period.

Comparable store sales in the quarter slid 0.6% while comparable online sales jumped 5.3%.

Net income in the quarter tumbled 72% to $129 million or 36 cents per diluted share compared to $461 million or $1.31 from the same quarter last year.

The electronic appliances retailer said domestic revenue in the quarter increased 1.4% to $7.9 billion and international revenue plunged 22.1% to $668 million.

The Buckle, Inc ((BKE)) declined 3.9% or $1.75 to $42.35 after the apparel, footwear, and accessories retailer reported net sales in the first-quarter ending on May 2 slid 0.1% to $271.3 million from a year ago period.

Comparable store sales in the quarter decreased 2.2% and online sales soared 12.9% to $24.2 million.

Net income in the quarter declined 9.9% to $33.6 million or 70 cents per diluted share compared to $37.3 million or 78 cents from the same quarter last year.

CVS Health Corp ((CVS)) climbed 3.1% or $3.11 to $104.38 after the prescription drugs retailer agreed to acquire pharmacy services provider Omnicare, Inc for $98 per share in cash or $12.7 billion, including about $2.3 billion in debt.

The transaction is expected to close by September.

The Cato Corporation ((CATO)) gained 1.7% or 64 cents to $39.30 after the women’s fashion specialty retailer said total revenues in the first-quarter ending on May 2 was nearly flat at $183.9 million from a year ago period.

Same store sales in the quarter dropped 3%.

Net income in the quarter jumped 3.7% to $31.1 million or $1.11 per diluted share compared to $30 million or $1.04 from the same quarter last year.

For the second-quarter, the retailer forecasted earnings per share in a range of 54 cents to 57 cents on same store sales in the range of decrease 2% to flat.

The Cato earnings per share between $2.10 and $2.23 compared to prior estimated range of $2.19 to $2.03.

Dollar Tree, Inc ((DLTR)) soared 4.5% or $3.50 to $79.79 after the deep discount stores operator reported net sales in the first-quarter ending on May 2 climbed 8.8% to $2.2 billion from a year ago period.

Same store sales in the quarter jumped 3.4%.

Net income in the quarter plunged 49.7% to $69.5 million or 34 cents per diluted share compared to $138.3 million or 67 cents from the same quarter last year.

The retailer forecasted net sales to range from $2.17 billion to $2.23 billion earnings per share between 63 cents and 68 cents.

For the year, the company forecasted net sales between $9.24 billion and $9.42 billion from earlier estimated range of $9.21 billion to $9.45 billion and earnings per share in the range of $3.32 to $3.47.

Donaldson Company, Inc ((DCI)) jumped 2.5% or 89 cents to $36.53 after the filtration systems provider stated revenues in the third-quarter ending in April slumped 9% to $568 million from a year ago period.

Net income in the quarter dropped 31% to $46.4 million or 33 cents per diluted share compared to $67.3 million or 46 cents from the same quarter last year.

L Brands Inc ((LB)) rose 73 cents to $89.43 after the women''s apparel retailer reported net sales in the first-quarter ending on May 2 jumped5% to $2.5 billion from a year ago period.

Same store sales in the quarter climbed 5%.

Net income in the quarter surged 59.5% to $250.5 million or 84 cents per diluted share compared to $157 million or 53 cents from the same quarter last year.

The company lifted its adjusted earnings per share guidance for the year in the range of $3.50 to $3.70 from previously announced between $3.45 and $3.65 and for second quarter earnings per share in the range of 60 cents and 65 cents.

NetApp Inc ((NTAP)) tumbled 12.3% or $4.34 to $31 after the storage and data management software provider said net revenues in the fourth-quarter ending on April 24 dropped 6.7% to $1.54 billion from a year ago period.

Net income in the quarter plummeted 31.5% to $134.9 million or 43 cents per diluted share compared to $197 million or 59 cents from the same quarter last year.

salesforce.com, Inc ((CRM)) soared 5% or $3.51 to $73.67 after the enterprise cloud computing solutions provider reported total revenues in the first-quarter ending in April climbed 22.8% to $1.51 billion from a year ago period.

Net in the quarter swung to profit $4.1 million or 1 cent per diluted share compared to a loss of $96.9 million or 16 cents from the same quarter last year.

The company forecasted adjusted earnings per share for the second quarter between 17 cents and 18 cents and for the year in the range of 69 cents to 71 cents.

Synopsys, Inc ((SNPS)) increased 1.2% or 59 cents to $49.83 after the engineering software developer said revenues in the second-quarter ending in April jumped 7.6% to $557.2 million from a year ago period.

Net income in the quarter slipped 12.2% to $55.6 million or 35 cents per diluted share compared to $63.3 million or 40 cents from the same quarter last year.

For the third-quarter, the company forecasted revenues between $550 million and $560 million and adjusted earnings per share in the range of 58 cents to 60 cents.

For the year, Synopsys forecasted revenues in the range of $2.21 billion to $2.24 billion and adjusted earnings per share between $2.76 and $2.81.

Williams-Sonoma, Inc ((WSM)) gained 1.3% or 99 cents to $78.88 after the home furnishings retailer reported total revenues in the first-quarter ending on May 3 climbed 5.7% to $1 billion from a year ago period.

Net income in the quarter increased 4.3% to $44.8 million compared to $46.2 million and diluted earnings per share were flat at 48 cents from the same quarter last year.