GE Sells Hyundai Capital Stake, ConAgra Profit Surges

Mukesh Buch
22 Dec, 2015
New York City

ConAgra profit surged. Cintas forecasted revenues for the year to jump 8%. Ennis net swung to profit but revenues fell. GE agreed to sell stake in Hyundai Capital to Hyundai Motor and Kia Motors. NetApp agreed to buy privately held SolidFire for $870 million.

[R]10:40 AM New York – ConAgra profit surged. Cintas forecasted revenues for the year to jump 8%. Ennis net swung to profit but revenues fell. GE agreed to sell stake in Hyundai Capital to Hyundai Motor and Kia Motors. NetApp agreed to buy privately held SolidFire for $870 million.[/R]

Tollbooth Index increased 45.92 or 0.4% to 10,722.78.

Earnings Review

ConAgra Foods Inc ((CAG)) gained 38 cents to $41.35 after the packaged food maker reported net sales in the second-quarter ending on November 29 dropped 1.4% from a year ago to $3.09 billion.

Net income in the quarter surged to $154.9 million or 35 cents per diluted share compared to $10 million or 2 cents per share from the same quarter last year.

The company forecasted earnings per share in the third-quarter to be modestly higher than from a year ago period.

Cintas Corporation ((CTAS)) jumped 2.5% or $2.18 to $91.39 after the business services provider reported revenues in the second-quarter ending in November advanced 8.5% from a year ago to $1.22 billion.

Net income in the quarter soared 186.6% to $345.1 million or $3.06 per diluted share compared to $120.4 million or $1 per share from the same quarter last year.

The company paid annual dividend of $1.05 per share totalling to $115.5 million, a 23.5% higher than the year ago period and was 32nd consecutive yearly increased of the dividend.

Cintas forecasted revenues for the fiscal 2016 to jump 7.8% to $4.83 billion and earnings per share to increase 14.3% to $3.83.

Ennis, Inc ((EBF)) slipped 1.1% or 22 cents to $19.12 after the printing services provider said revenues in the third-quarter ending in November declined 5.1% from a year ago to $139.5 million.

Net in the quarter swung to profit $10.7 million or 41 cents per diluted share compared to a loss of $71.2 million or $2.76 per share from the same quarter last year.

General Electric Company ((GE)) fell 15 cents to $30.25 after the diversified industrial conglomerate agreement to sell 23.3% stake worth about for $600.8 million or 703 billion won in Hyundai Capital Services to Hyundai Motor Company and Kia Motors.

NetApp Inc ((NTAP)) plunged 7.1% or $1.96 to $25.65 after the data storage equipment maker agreed to buy privately held flash storage systems maker SolidFire Inc. for $870 million in cash.

The deal is expected to close in the fiscal fourth-quarter.

Steelcase Inc ((SCS)) tumbled 20.4% or $3.86 to $15.03 after the interior architectural products maker stated revenues in the third-quarter ending in November rose 1.6% from a year ago to $787.6 million.

Net income in the quarter jumped 4.5% to $35.6 million or 28 cents per diluted share compared to $11.8 million or 9 cents per share from the same quarter last year.

Steelcase estimated revenues for the fourth-quarter of about $749.9 million and diluted earnings per share of about 18 cents.

Western Refining Inc ((WNR)) slumped 3.2% or $1.17 to $36.35 after the crude oil refiner and marketer agreed to acquire the remaining stake in Northern Tier Energy LP that with a revised offer worth about $2.43 billion.

Under the terms, shareholder of Northern Tier will receive $15 in cash and 0.2986 per share, the offer represents a 7.9% premium to closing price of Monday.

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