KLA and Lam and Western Digital and SanDisk in $30 B Deals

Mukesh Buch
21 Oct, 2015
New York City

KLA-Tencor agreed to be acquired by Lam Research for $10.6 billion. Western Digital agreed to acquire SanDisk for $19 billion. Abbott net jumped 8%. Boeing profit surged 25%. GM reported flat profit. Kimberly Clark revenues and profit plunged. Coca-Cola net declined 31%.

[R]12:30 PM New York – KLA-Tencor agreed to be acquired by Lam Research for $10.6 billion. Western Digital agreed to acquire SanDisk for $19 billion. Abbott net jumped 8%. Boeing profit surged 25%. GM reported flat profit. Kimberly Clark revenues and profit plunged. Coca-Cola net declined 31%.[/R]

Tollbooth Index slipped 66.45 or 0.4% to 10,597.30.

Earnings Review

Abbott Laboratories ((ABT)) increased 1.2% or 51 cents to $42.26 after the health care products maker said revenues in the third-quarter ending in September rose 1.4% from a year ago to $5.15 billion.

Net income in the quarter jumped 7.6% to $580 million or 38 cents per diluted share compared to $538 million or 36 cents from the same quarter last year.

ABB Ltd ((ABB)) added 5 cents to $18.19 after the Switzerland-based power and automation technology provider stated revenues in the third-quarter ending in September plunged 13% from a year ago to $8.52 billion.

Net income in the quarter tumbled 21% to $577 million or 26 cents per diluted share compared to $734 million or 35 cents from the same quarter last year.

Boeing Co ((BA)) jumped 2% or $2.80 to $141.68 after the aerospace company reported revenues in the third-quarter ending in September advanced 7% from a year ago to $25.85 billion.

Net income in the quarter surged 25% to $1.70 billion or $2.47 per diluted share compared to $1.36 billion or $1.86 from the same quarter last year.

Biogen Inc ((BIIB)) gained 1.9% or $5.04 to $270.85 after the biopharmaceutical company said total revenues in the third-quarter ending in September jumped 10.8% from a year ago to $2.78 billion.

Net income in the quarter soared 12.7% to $965.6 million or $4.15 per diluted share compared to $856.9 million or $3.62 from the same quarter last year.

General Motors Company ((GM)) surged 6.3% or $2.11 to $35.59 after the vehicle maker reported total revenues in the third-quarter ending in September fell 1.3% from a year ago to $38.8 billion.

Net income in the quarter was flat at $1.4 billion from a year ago period and diluted earnings per share rose to 84 cents from 81 cents from the same quarter last year.

Kimberly Clark Corp ((KMB)) increased 2% or $2.40 to $119.62 after the sanitary products maker said net sales in the third-quarter ending in September declined 7% from a year ago to $4.7 billion.

Net income in the quarter plunged 8% to $517 million or $1.41 per diluted share compared to $562 million or $1.50 from the same quarter last year.

The Coca-Cola Co ((KO)) rose 13 cents to $42.45 after the non-alcoholic beverages maker reported total revenues in the third-quarter ending in September dropped 5% from a year ago to $11.43 billion.

Net income in the quarter declined 31% to $1.45 billion or 33 cents per diluted share compared to $2.11 billion or 48 cents from the same quarter last year.

KLA-Tencor Corp ((KLAC)) surged 22.5% or $12.11 to $65.97 after the integrated circuit equipment maker agreed to be acquired by Lam Research Corporation at $67.02 per share or $10.6 billion.

Lam Research Corporation stock jumped 6.1% to $74.29.

Separately, the company said revenues in the first-quarter ending in September were nearly flat from a year ago at $642.64 million.

Net income in the quarter soared 45.2% to $104.9 million or 66 cents per diluted share compared to $72.2 million or 43 cents from the same quarter last year.

SanDisk Corporation ((SNDK)) jumped 2.8% or $2.13 to $77.32 after the flash storage solutions provider said revenues in the third-quarter ending on September 27 plunged 17% from a year ago to $1.45 billion.

Net income in the quarter tumbled 49.4% to $133 million or 65 cents per diluted share compared to $263 million or $1.09 from the same quarter last year.

Western Digital Corp ((WDC)) slumped 3.7% or $2.74 to $72.12 after the hard disk drives maker stated preliminary revenues in the first-quarter ending on October 2 were about $3.4 billion from a year ago and net income of $283 million, or $1.21 per share.

The company is scheduled to release financial result on October 28 after the market close.

Separately, the company today agreed to acquire flash storage solutions provider SanDisk Corporation for about $19 billion in a cash-and-stock deal.

Under the terms, shareholders of SanDisk receive $86.50 per share in cash and stock, a 15% premium to the closing price on Tuesday.

The transaction is expected to close in the third quarter of 2016.

Yahoo! Inc ((YHOO)) declined 4.6% or $1.51 to $31.32 after the internet search engine services provider said revenues in the third-quarter ending in September soared 6.9% from a year ago to $1.15 billion.

Net income in the quarter plummeted to $76.3 million or 8 cents per diluted share compared to $6.77 billion or $6.70 from the same quarter last year.

Yahoo said last year profit reflected the sale of stake in Alibaba Group Holding Ltd.