AOL Acquired Millennial Media, Medtronic Net Falls

Mukesh Buch
03 Sep, 2015
New York City

Lannett agreed to acquire a unit of UCB for $1.2 billion. AOL agreed to acquire Millennial Media for $250 million. Campbell Soup net tumbled 45%. Ciena profit jumped 46%. Greif net plunged 37.2% but lifted fiscal outlook. Joy Global net plunged.

[R]12:20 PM New York – Lannett agreed to acquire a unit of UCB for $1.2 billion. AOL agreed to acquire Millennial Media for $250 million.Campbell Soup net tumbled 45%. Ciena profit jumped 46%. Greif net plunged 37.2% but lifted fiscal outlook. Joy Global net plunged.[/R]

Tollbooth Index increased 80.08 or 0.7% to 10,334.32.

Earnings Review

AOL Inc ((AOL)) closed unchanged at $49.99 after the Verizon Communications Inc.’s subsidiary agreed to acquire ad technology company Millennial Media Inc. for about $250 million, a 31% premium to closing price yesterday.

Campbell Soup Company ((CPB)) rose 31 cents to $48.06 after the convenience food products maker reported net sales in the fourth-quarter ending on August 2 declined 9% from a year ago to $1.69 billion.

Net income in the quarter tumbled 45.3% to $128 million or 22 cents per diluted share compared to $234 million or 43 cents from the same quarter last year.

The company estimated sales for the year to increase by break even to 1% and diluted earnings per share between $2.53 and $2.58.

Ciena Corporation ((CIEN)) increased 18 cents to $22.67 after the networking equipment provider said revenues in the third-quarter ending in July slid 0.1% from a year ago to $602.9 million.

Net income in the quarter jumped 45.7% to $23.6 million or 19 cents per diluted share compared to $16.2 million or 15 cents from the same quarter last year.

Calavo Growers, Inc ((CVGW)) plunged 8.5% or $4.89 to $52.53 after the farming products provider said revenues in the third-quarter ending in July jumped 6.3% from a year ago to $232.5 million.

Net income in the quarter surged to $8.6 million or 50 cents per diluted share compared to $1.6 million or 9 cents from the same quarter last year.

Greif, Inc ((GEF)) surged 21.4% or $6.12 to $34.83 after the industrial packaging products maker stated net sales in the third-quarter ending in July soared 19.2% from a year ago to $669 million.

Net income in the quarter plunged 37.2% to $8.6 million or 15 cents per diluted share compared to $13.7 million or 23 cents from the same quarter last year.

The company lifted diluted earnings forecast for the year in the range of $1.85 to $1.95 compared to previous guidance between $1.65 and $1.75.

Genesco Inc ((GCO)) soared 7.8% or $4.59 to $63.29 after the footwear, apparel and accessories retailer said net sales in the second-quarter ending on August 1 jumped 7% from a year ago to $655.5 million.

Comparable store sales in the quarter increased 7%.

Net income in the quarter soared 59.6% to $7.5 million or 32 cents per diluted share compared to $4.7 million or 20 cents from the same quarter last year.

The retailer estimated diluted earnings per share for the year in the range of $4.70 to $4.80.

Joy Global Inc ((JOY)) tumbled 17.7% or $3.78 to $18.35 after the mining equipment maker said net sales in the third-quarter ending in July declined 10% from a year ago to $792 million.

Net income in the quarter plunged 37% to $44.9 million or 46 cents per diluted share compared to $71.3 million or 71 cents from the same quarter last year.

The company forecasted revenues and diluted earnings per share for the full-year of about $3.1 billion and $1.80 respectively.

Lannett Company, Inc ((LCI)) surged 14.4% or $7.14 to $56.57 after the pharmaceutical company agreed to acquire Kremers Urban Pharmaceuticals, Inc, the U.S. specialty generic pharmaceuticals and subsidiary of Belgium-based UCB S.A., for about $1.23 billion and expected to receive tax benefit for more than $100 million.

Medtronic Plc ((MDT)) gained 26 cents to $71.80 after the Ireland-based medical devices maker reported revenues in the first-quarter ending in July soared 12% from a year ago to $7.3 billion.

Net income in the quarter declined 5.9% to $820 million or 57 cents per diluted share compared to $871 million or 87 cents from the same quarter last year.