Lone Star Funds to Buy Home Properties for $7.6 B, BlackBerry Net Jumps

Mukesh Buch
23 Jun, 2015
New York City

Home Properties agreed to be acquired by Lone Star Funds for $7.6 billion. BlackBerry net soared 196% but revenues plunged 32%. Darden Restaurants profit surged 80% and plans to separate a portion of its real estate assets. IHS net dropped 8%. Sonic net jumped 15%.

[R]12:30 PM New York – Home Properties agreed to be acquired by Lone Star Funds for $7.6 billion. BlackBerry net soared 196% but revenues plunged 32%. Darden Restaurants profit surged 80% and plans to separate a portion of its real estate assets. IHS net dropped 8%.Sonic net jumped 15%.[/R]

Tollbooth Index edged up 2.30 to 10,861.96.

Earnings Review

BlackBerry Ltd ((BBRY)) slipped 1.7% or 16 cents to $9.04 after the Canada-based mobile devices maker said revenues in the first-quarter ending in May plunged 31.9% to $658 million from a year ago period.

Net income in the quarter soared 195.7% to $68 million compared to $23 million and diluted loss per share narrowed to 10 cents from 37 cents from the same quarter last year.

The company said software and technology licensing revenue surged 150% to $137 million while hardware revenue declined 30.6% to $263 million and service revenue tumbled 51.4% to $252 million from a year ago period.

BlackBerry added smart-phone revenue in the quarter dropped 30.6% to $263 million as an average selling price of $240.

Darden Restaurants, Inc ((DRI)) increased 4.6% or $3.16 to $72.53 after the full service restaurant operator reported total sales in the fourth-quarter ending in May soared 13.9% to $1.88 billion from a year ago period.

Same-restaurant sales in the quarter jumped 3.8%.

Net income in the quarter surged 79.5% to $129.7 million or $1.01 per diluted share compared to $72.3 million or 54 cents from the same quarter last year.

The company forecasted diluted earnings per share for the year between $3.05 and $3.20 and same-restaurant sales in the range of 2% to 2.5%.

Separately the company plans to separate a portion of its real estate assets to a new real estate investment trust and transfer about 430 owned restaurants.

The company expects to complete the REIT transaction by the end of this year.

Home Properties, Inc ((HME)) decreased 8 cents to $73.93 after the self-administered and self-managed real estate investment company agreed to be acquired by private equity firm Lone Star Funds for about $7.6 billion in cash including existing debt.

The Lone Star offered $75.23 per share, a premium of 3.4% to Home Properties'' closing price of Friday.

The transaction is expected to close in fourth-quarter.

IHS Inc ((IHS)) slipped 1.4% or $1.80 to $126.94 after the analytical information provider reported revenues in the first-quarter ending in May jumped 4.1% to $591.4 million from a year ago period.

Net income in the quarter dropped 8.3% to $50.9 million or 74 cents per diluted share compared to $55.5 million or 81 cents from the same quarter last year.

Park Electrochemical Corp ((PKE)) slumped 3.3% or 70 cents to $20.46 after the integrated circuits maker stated net sales in the first-quarter ending in May declined 22.5% to $37.8 million form a year ago period.

Net income in the quarter plummeted 41.5% to $4.8 million or 23 cents a diluted share compared to $8.2 million or 39 cents from the same quarter last year.

Sonic Corporation ((SONC)) plunged 11.4% or $3.89 to $30.33 after the drive-in fast food restaurant operator said net sales in the third-quarter ending in May jumped 8.2% to $164.7 million from a year ago period.

System-wide same-store sales in the quarter increased 6.1% and increased 5.5% at company owned drive-ins.

Net income in the quarter soared 15% to $20.4 million or 38 cents per diluted share compared to $16.8 million or 30 cents from the same quarter last year.