Apollo Education Agrees to go Private, Loews Net Swings to Loss

Mukesh Buch
08 Feb, 2016
New York City

Apollo Education agreed to be acquired by Apollo Global Management. Cognizant net and revenues surged but lowered on weak forecast. CTS fell despite net swung to profit. Hasbro net jumped 4%. Loews net swung to a loss. Mercury General net swung to profit.

[R]12:00 PM New York – Apollo Education agreed to be acquired by Apollo Global Management. Cognizant net and revenues surged but lowered on weak forecast. CTS fell despite net swung to profit. Hasbro net jumped 4%. Loews net swung to a loss. Mercury General net swung to profit.[/R]

Tollbooth Index dropped 210.76 or 2.2% to 9,568.76.

Earnings Review

Apollo Education Group Inc ((APOL)) surged 27.2% or $1.89 to $8.84 after the private education provider agreed to be taken private and acquired by group of investors including Apollo Global Management affiliates and others for about $1.1 billion.

The transaction is expected to close in August.

Cognizant Technology Solutions Corp ((CTSH)) plummeted 6.7% or $3.88 to $54.66 after the information technology provider reported revenues in the fourth-quarter ending in December surged 17.9% from a year ago to $3.23 billion.

Net income in the quarter soared 16.7% to $423.4 million or 69 cents per diluted share compared to $362.9 million or 59 cents per share from the same quarter last year.

Cognizant forecasted revenues in the first-quarter in the range of $3.18 billion to $3.24 billion and non-GAAP diluted earnings per share between 78 cents and 80 cents.

For the year, the company estimated revenues in the range of $13.65 billion to $14.20 billion and non-GAAP diluted earnings per share between $3.32 and $3.44.

CTS Corporation ((CTS)) plunged 5.9% or 83 cents to $13.25 after the electronic components revenues in the fourth-quarter ending in December declined 7.1% from a year ago to $93.3 million.

Net in the quarter swung to profit $13.7 million or 42 cents per diluted share compared to profit of $7 million or 21 cents per share from the same quarter last year.

Hasbro, Inc ((HAS)) gained 1.4% or $1.05 to $75.15 after the toys and entertainment products maker reported revenues in the fourth-quarter ending in December soared 13% from a year ago at $1.47 billion.

Net income in the quarter jumped 3.5% to $175.8 million or $1.39 per diluted share compared to $169.9 million or $1.34 per share from the same quarter last year.

Loews Corporation ((L)) dropped 2.2% or 80 cents to $35.49 after the property and casualty insurance provider reported revenues in the fourth-quarter ending in December slumped 5.4% from a year ago to $3.33 billion.

Net in the quarter swung to a loss of $201 million or 58 cents per diluted share compared to profit of $208 million or 55 cents per share from the same quarter last year.

Lennox International Inc ((LII)) declined 6.6% or $7.50 to $106.83 after the climate control solutions provider stated revenues in the fourth-quarter ending in December rose 3% from a year ago to $834.1 million.

Net income in the quarter tumbled 74.9% to $11.2 million or 25 cents per diluted share compared to $44.6 million or 96 cents per share from the same quarter last year.

Mercury General Corporation ((MCY)) soared 7.4% or $3.37 to $48.96 after the automobile personal insurer company said net premium written in the fourth-quarter ending in December jumped 7% from a year ago to $746.4 million.

Net in the quarter swung to profit $23.4 million or 42 cents per diluted share compared to profit of $20.9 million or 38 cents per share from the same quarter last year.