La Quinta Replaces Chief, Adobe Profit Surges

Mukesh Buch
18 Sep, 2015
New York City

Equifax offered to buy Australia-based Veda Group. McKesson agreed to acquire Ireland-based UDG Healthcare. Antero Midstream agreed to acquire fresh water business of Antero Resources. Adobe net surged. La Quinta replaced its chief executive officer and announced $100 million stocks repurchase plan.

[R]1:35 PM New York – Equifax offered to buy Australia-based Veda Group. McKesson agreed to acquire Ireland-based UDG Healthcare. Antero Midstream agreed to acquire fresh water business of Antero Resources. Adobe net surged. La Quinta replaced its chief executive officer and announced $100 million stocks repurchase plan.[/R]

Tollbooth Index slipped 58.36 or 0.6% to 10,433.60.

Earnings Review

Adobe Systems Inc ((ADBE)) jumped 3.3% or $2.64 to $82.95 after the software company reported total revenues in the third-quarter ending on August 28 surged 22% from a year ago to $1.22 billion.

Net income in the quarter soared to $174.5 million or 34 cents per diluted share compared to $44.7 million or 9 cents from the same quarter last year.

Adobe forecasted revenues for the fourth-quarter between $1.275 billion and $1.325 billion and earnings per share in the range of 32 cents to 38 cents.

Antero Midstream Partners LP fell 4 cents to $20.22 after the oil and gas pipelines services provider agreed to acquire the fresh water business of Antero Resources Corp for about $1.05 billion including debt.

The company agreed to pay $552 million in cash and 23.9 million in stock worth about $483.9 million based on the closing price of yesterday.

The company lifted operating profit forecast for the year between $170 million and $180 million compared to the earlier estimated range of $150 million to $160 million.

AK Steel Holding Corporation ((AKS)) gained 1.6% or 5 cents to $2.85 after the stainless and electrical steels producer forecasted net diluted loss per share for the third-quarter between 2 cents and 7 cents from the net diluted loss per share of 36 cents in the second-quarter.

For the third-quarter, the company estimated shipments to increase 3% to 1.86 million tons compared to the second-quarter.

Equifax Inc. ((EFX)) slipped 33 cents to $98.03 after the outsourcing services provider made non-binding proposal to acquire Australia-based data analysis provider Veda Group Limited for $2.70 per share in cash valued at about A$2.3 billion or $1.6 billion.

The transaction representing 35% premium of yesterday’s closing price of $1.995.

Veda Group provides credit information in Australia and New Zealand.

Freeport-McMoRan Inc ((FCX)) plunged 8% or 96 cents to $11.09 after the natural resource company raise $1 billion through share sales and plans to raise additional $1 billion.

La Quinta Holdings Inc ((LQ)) declined 15.6% or $2.96 to $16.01 after the hotels and motels operator’s chief executive officer Wayne Goldberg was replaced by chief financial officer Keith Cline as an interim-president and CEO.

The company also announced a plan to acquire $100 million of shares and lowered its outlook for the rest of the year.

Manchester United Plc rose 10 cents to $18.07 after the U.K.-focused professional football team said revenues in the fourth-quarter ending in June jumped 10% from a year ago to £105.8 million.

Net loss in the quarter widened to £7.2 million or 4.38 pence per diluted share compared to $5.8 million or 3.55 pence from the same quarter last year.

For the fiscal 2016, the professional football team forecasted revenues in the range of £500 million to £510 million.

McKesson Corporation ((MCK)) gained $1.14 to $205.84 after the healthcare information technology provider agreed to acquire two units of Ireland-based UDG Healthcare Plc for €407.5 million on a cash and debt free basis.

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

UDG Healthcare Plc stock soared 9.6% to 540.50 pence.

Rockwell Collins, Inc ((COL)) decreased 86 cents to $84.42 after the aerospace company reaffirmed its revenues for fiscal 2015 forecast of about $5.25 billion to $5.30 billion and earnings per share in the range of $5.15 to $5.25.

For fiscal 2016, the aerospace company estimated revenues between $5.3 billion and $5.4 billion and earnings per share in the range of $5.20 to $5.40 per share.

Zayo Group Holdings Inc ((ZAYO)) fell 5 cents to $29.13 after the cellular towers provider reported revenues in the fourth-quarter ending in June soared 25% from a year ago to $361.9 million.

Net in the quarter swung to profit $5.1 million compared to a loss of $53.7 million in the same quarter last year.