Celgene Completes Receptos Acquisition, Big Lots Soars on Outlook

Mukesh Buch
28 Aug, 2015
New York City

Celgene completed the acquisition of Receptos for $7.2 billion. Neogen agreed to acquire the U.K.-based rival Lab M. Autodesk net swung to a loss. Big Lots offered higher annual outlook. GameStop profit surged 35%. OmniVision net tumbled 60%. Ulta Salon net surged 22%.

[R]12:00 PM New York – Celgene completed the acquisition of Receptos for $7.2 billion. Neogen agreed to acquire the U.K.-based rival Lab M. Autodesk net swung to a loss. Big Lots offered higher annual outlook. GameStop profit surged 35%. OmniVision net tumbled 60%. Ulta Salon net surged 22%.[/R]

Tollbooth Index slid 14.91 to 10,456.76.

Earnings Review

Autodesk, Inc ((ADSK)) declined 4% or $2.01 to $47.99 after the application software services provider said revenues in the second-quarter ending in July dropped 4% from a year ago to $609.5 million.

Comparable sales in the quarter increased 2.8%.

Net in the quarter swung to a loss of $235.5 million or $1.04 per diluted share compared to profit of $31.3 million or 13 cents from the same quarter last year.

For the third-quarter the company forecasted revenues in the range of $580 million to $600 million and net loss per share between 18 cents to 23 cents.

The company estimated revenues for the year between $2.47 billion and $2.51 billion and net loss per share in the range of $1.39 to $1.27.

Separately, the company agreed to acquire a San Francisco-based SeeControl a developer of an enterprise Internet of Things cloud service platform but terms of the deal were not disclosed.

However, the transaction is expected to close during Autodesk’s current quarter ending in October.

Big Lots, Inc ((BIG)) surged 15.6% or $6.56 to $48.56 after the discount retailer said net sales in the second-quarter ending on August 1 gained 0.8% from a year ago to $1.21 billion.

Comparable store sales in the quarter increased 2.8%, at the high-end of the previous estimate offered by the company.

Net income in the quarter declined 11.6% to $17.6 million or 34 cents per diluted share compared to $19.9 million or 36 cents from the same quarter last year.

Gross margin for the discount retailer was flat but operating margin increased to 2.5% in the quarter, an increase from 2.3% in the quarter a year ago.

Stock soared after the discount retailer said adjusted net income is expected between $2.90 and $3 a share, higher than previously estimated.

Celgene Corporation ((CELG)) rose 46 cents to $123.50 after the biopharmaceutical company said it has completed its acquisition of Receptos Inc for about $7.2 billion or $232 a share in cash.

GameStop Corporation ((GME)) plunged 6.6% or $3.06 to $43.14 after the video games retailer reported net sales in the second-quarter ending on August 1 increased 1.8% from a year ago to $1.76 billion.

Comparable store sales in the quarter soared 8.1%.

Net income in the quarter surged 34.6% to $33.1 million or 31 cents per diluted share compared to $24.6 million or 22 cents from the same quarter last year.

Stock of video game retailer declined after the company offered weaker than expected outlook.

The video games retailer forecasted same-store sales for the third-quarter to grow in the range of 1% to 4% and earnings per share between 53 cents and 60 cent.

For the year, the company estimated same-store sales for the year to jump between 2% and 7% from previous estimated range of 1% to 6% and earnings per share in the range of $3.63 to $3.83.

Neogen Corporation ((NEOG)) slid 2 cents to $52.10 after the diagnostic test kits maker agreed to acquire U.K.-based rival Lab M Holdings for undisclosed terms.

OmniVision Technologies, Inc ((OVTI)) gained 3.1% or 72 cents to $24.27 after the image-sensor devices maker stated revenues in the first-quarter ending in July plunged 18.8% from a year ago to $329.9 million.

Net income in the quarter tumbled 59.8% to $18.2 million or 31 cents per diluted share compared to $45.3 million or 78 cents from the same quarter last year.

Regis Corporation ((RGS)) plummeted 5.9% or 77 cents to $12.40 after the beauty salons operator said net sales in the fourth-quarter ending in June slumped 4.3% from a year ago to $462.9 million.

Same store sales in the quarter decreased 0.8% and same store sales services segment fell 0.6% while same store sales business dropped 1.8%.

Net loss in the quarter narrowed to $2.6 million or 5 cents per diluted share compared to $17 million or 30 cents from the same quarter last year.

Ulta Salon, Cosmetics & Fragrance, Inc ((ULTA)) slipped 80 cents to $159.55 after the beauty retailer reported net sales in the second-quarter ending on August 1 soared 19.4% from a year ago to $877 million.

Comparable store sales in the quarter surged 10.1% and comparable retail sales jumped 8.9% and including salon comparable sales advanced 10.1%.

Net income in the quarter increased 22% to $74.2 million or $1.15 per diluted share compared to $60.8 million or 94 cents from the same quarter last year.