GameStop Soars on Outlook, Ulta Salon Net Jumps 34%

Mukesh Buch
29 May, 2015
New York City

Equinix agreed to acquire the U.K.-based rival Telecity for $3.6 billion. Intel may acquire Altera for $15 billion. Big Lots net surged more than eight-fold. Genesco net plunged 29%. GameStop soared 9%. Splunk net loss widened. Ulta Salon profit surged 34%.

[R]1:00 PM New York – Equinix agreed to acquire the U.K.-based rival Telecity for $3.6 billion. Intel may acquire Altera for $15 billion. Big Lots net surged more than eight-fold. Genesco net plunged 29%. GameStop soared 9%. Splunk net loss widened. Ulta Salon profit surged 34%.[/R]

Tollbooth Index slipped 0.5% or 58.62 to 10,721.51.

Earnings Review

Big Lots, Inc slipped 1.5% or 77 cents to $44.42 after the specialty discount stores operator said net sales in the first-quarter ending on May 2 decreased 0.1% to $1.28 billion from a year ago period.

Comparable store sales in the quarter increased 1.6%.

Net income in the quarter surged more than eight-fold to $32.2 million or 60 cents per diluted share compared to $3.3 million or 6 cents from the same quarter last year.

Equinix Inc ((EQIX)) slipped $1.77 to $267.42 after the networking services provider agreed to acquire the U.K.-based smaller rival Telecity Group in a deal worth $3.6 billion or £2.35 billion, represents a premium of approximately 27.3% to the price on May 6.

Under the terms, shareholder of Telecity will receive 572.5 pence in cash and 0.0327 new Equinix shares.

The transaction is expected to close in first-half of 2016.

Genesco Inc. ((GCO)) declined 4.6% or $3.10 to $64.69 after the footwear, apparel and accessories retailer stated net sales in the first-quarter ending on May 2 climbed 5% to $660.6 million from a year ago period.

Comparable store sales in the quarter jumped 4%.

Net income in the quarter plunged 28.8% to $9.9 million or 42 cents per diluted share compared to $13.9 million or 59 cents from the same quarter last year.

GameStop Corporation ((GME)) surged 7.8% or $3.21 to $44.13 after the video game provider reported net sales in the first-quarter ending on May 2 increased 3% to $2.06 billion from a year ago period.

Net income in the quarter soared 8.5% to $73.8 million or 68 cents per diluted share compared to $68 million or 59 cents from the same quarter last year.

For the second-quarter the company forecasted earnings per share in the range of 21 cents and 25 cents.

GameStop lifted its earnings per share forecast for the year between $3.63 and $3.83 from earlier estimate of $3.60 to $3.80.

Intel Corporation ((INTC)) gained 1.3% or 47 cents to $34.47 after the the New York Post reported semiconductor processors and chips maker is likely to acquire smaller chip maker Altera Corporation for about $15 billion, a 15% premium over Altera''s yesterday’s closing price of $46.97.

In April, Altera rejected an unsolicited offer for $54 per share from Intel and it signed standstill agreement earlier this year with Altera that expires on June 1.

The newspaper said ""deal is likely by the end of next week"".

Splunk Inc. ((SPLK)) declined 6.7% or $4.82 to $66.33 after the software products provider reported net revenues in the first-quarter ending in April soared 40.2% to $71.9 million from a year ago period.

Net loss in the quarter widened to $71.2 million or 57 cents per diluted share compared to $50.8 million or 43 cents from the same quarter last year.

Ulta Salon, Cosmetics & Fragrance, Inc. ((ULTA)) fell 0.7% or $1.33 to $155.02 after the beauty retailer said net sales in the first-quarter ending on May 2 climbed 21.6% to $868.1 million from a year ago period.

Comparable same store sales in the quarter surged 11.4%.

Net income in the quarter soared 33.8% to $66.9 million or $1.04 per diluted share compared to $50 million or 77 cents from the same quarter last year.