Walgreens to Buy Rite Aid; Ford, Merck Net Soar, Comcast, Pfizer Net Drop

Mukesh Buch
27 Oct, 2015
New York City

Walgreens is in talk to acquire Rite Aid. Cisco agreed to acquire privately held Lancope. Alibaba net jumped. Bristol-Myers net fell 2%. Comcast profit plunged. Du Pont net plummeted 46%. Ford net more than doubled. Pfizer net plunged 20%.

[R]12:00 PM New York – Walgreens is in talk to acquire Rite Aid. Cisco agreed to acquire privately held Lancope. Alibaba net jumped. Bristol-Myers net fell 2%. Comcast profit plunged. Du Pont net plummeted 46%. Ford net more than doubled. Pfizer net plunged 20%.[/R]

Tollbooth Index slipped 115.33 or 1.1% to 10,832.46.

Earnings Review

Alibaba Group Holding Ltd ((BABA)) soared 4.1% or $3.08 to $79.39 after the China-focused online and mobile market place said revenue in the second-quarter ending in September soared 32% from a year ago to $3.49 billion.

Net income in the quarter jumped 649% to $3.58 billion and diluted earnings per share increased to $1.40 compared to the same period a year ago.

The company said mobile revenues in the quarter surged 183% to $1.66 billion.

Bristol-Myers Squibb Co ((BMY)) jumped 2.5% or $1.59 to $66.14 after the biopharmaceutical products maker reported total revenues in the third-quarter ending in September increased 4% from a year ago to $4.07 billion.

Net income in the quarter fell 2.1% to $706 million or 42 cents per diluted share compared to $721 million or 43 cents from the same quarter last year.

Comcast Corporation ((CMCSA)) dropped 1.1% or 69 cents to $61.49 after the cable network operator reported revenues in the third-quarter ending in September jumped 11.2% from a year ago to $18.67 billion.

Net income in the quarter plunged 23.2% to $1.99 billion or 80 cents per diluted share compared to $2.59 billion or 99 cents from the same quarter last year.

The company said broadband revenue in the quarter soared 10.2% to $3.1 billion while voice revenue fell 1.4% to $900 million. Business-services revenue surged 19.5% to $1.2 billion and video revenue increased 3.3% to $5.3 billion.

In the quarter, the company said media segment revenue jumped 21% to $7.2 billion.

Cisco Systems, Inc ((CISCO)) slid 7 cents to $28.89 after the network services provider agreed to acquire privately held network security provider Lancope, Inc for about $452.5 million in cash and stock.

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

Cummins Inc ((CMI)) plunged 7.9% or $8.81 to $103.27 after the diesel and gas engines maker said revenues in the third-quarter ending in September dropped 6% from a year ago to $4.6 billion.

Net income in the quarter declined 10.2% to $380 million or $2.14 per diluted share compared to $423 million or $2.32 from the same quarter last year.

E I Du Pont De Nemours And Co ((DD)) increased 2.8% or $1.67 to $62.04 after the industrial conglomerates reported revenues in the third-quarter ending in September plunged 20.7% from a year ago to $4.97 billion.

Net income in the quarter plummeted 45.7% to $235 million or 26 cents per diluted share compared to $433 million or 47 cents from the same quarter last year.

Ford Motor Company ((F)) slumped 4.7% or 73 cents to $14.95 after the auto maker reported revenues in the third-quarter ending in September jumped 9.1% from a year ago to $35.8 billion.

Net income in the quarter more than double to $1.91 billion or 48 cents per diluted share compared to $835 million or 45 cents from the same quarter last year.

The North America region revenues surged 89% to $2.7 billion from a year ago and in Europe soared 17% but fell in South America, the Middle East and Asia.

Ford reaffirmed forecast to report full-year pre-tax profit between $8.5 billion and $9.5 billion.

Merck & Co., Inc ((MRK)) rose 37 cents to $53.20 after the health care company said revenues in the third-quarter ending in September declined 5% from a year ago to $10.07 billion.

Net income in the quarter doubled to $1.83 billion or 64 cents per diluted share compared to $895 million or 31 cents from the same quarter last year.

Merck lifted earnings per share forecast for the year between $3.55 and $3.60 from the earlier estimated range of $3.45 to $3.55 per share.

Pfizer Inc ((PFE)) increased 2.1% or 71 cents to $34.87 after the reported revenues in the third-quarter ending in September slipped 2% from a year ago to $12.09 billion.

Net income in the quarter plunged 20% to $2.13 billion or 34 cents per diluted share compared to $2.67 million or 42 cents from the same quarter last year.

Walgreens Boots Alliance Inc ((WBA)) soared 5.9% or $5.30 to $94.78 after the drug store chain is in advanced talks to buy Rite Aid Corporation that may lead to a deal announcement as early as Wednesday.

The news was first reported by the Wall Street Journal and the drug retailer is schedule to release its fourth-quarter result by tomorrow.

Rite Aid Corporation stock surged 39.2% to $8.46.