IBM in $2.6 B Deal with Truven Health; Hyatt, Wal-Mart Net Tumble

Mukesh Buch
18 Feb, 2016
New York City

Cott Corp net swung to a loss. Choice Hotels net and revenues surged. Duke Energy net fell. DISH Network and Perrigo net swung to a loss. Hyatt Hotels net tumbled. IBM agreed to acquire Truven Health for $2.6 billion. Wal-Mart net declined.

[R]11:25 AM New York – Cott Corp net swung to a loss. Choice Hotels net and revenues surged. Duke Energy net fell. DISH Network and Perrigo net swung to a loss. Hyatt Hotels net tumbled. IBM agreed to acquire Truven Health for $2.6 billion. Wal-Mart net slid.[/R]

Tollbooth Index slipped 70.04 or 0.7% to 10,087.48.

Earnings Review

Cott Corporation ((COT)) gained 2.6% or 26 cents to $10.21 after the non- alcoholic beverages maker said revenue in the fourth-quarter ending on January 2 soared 28.6% from a year ago to $698.8 million.

Net in the quarter swung to a loss of $4.4 million or 4 cents per diluted share compared to profit of $18.7 million or 19 cents per share from the same quarter last year.

Choice Hotels International Inc ((CHH)) dropped 3.6% or $1.71 to $46.03 after the hotel franchisor stated total revenue in the fourth-quarter ending in December jumped 14% from a year ago to $210.9 million.

Net income in the quarter surged 15% to $29.2 million or 51 cents per diluted share compared to $25.3 million or 43 cents per share from the same quarter last year.

Duke Energy Corporation ((DUK)) rose 17 cents to $75.67 after the energy company reported total revenue in the first-quarter ending in January declined 4.4% from a year ago to $4.97 billion.

Net income in the quarter declined 8% to $477 million or 69 cents per diluted share compared to $97 million or 14 cents per share from the same quarter last year.

DISH Network Corporation ((DISH)) slipped 1.7% or 80 cents to $45.27 after the satellite TV operator said total revenue in the fourth-quarter ending in December jumped 2.7% from a year ago to $3.78 billion.

Net in the quarter swung to a loss of $125.3 million or 27 cents per diluted share compared to profit of $409.9 million or 88 cents per share from the same quarter last year.

Discovery Communications Inc ((DISCA)) declined 6% or $1.60 to $25.10 after the media and broadcasting company stated revenue in the fourth-quarter ending in December fell 2% from a year ago to $1.65 billion.

Net income in the quarter plunged 12.4% to $219 million or 34 cents per diluted share compared to $250 million or 38 cents per share from the same quarter last year.

Entergy Corporation ((ETR)) increased 1.9% or $1.39 to $72.40 after the electric distributor said total revenue in the first-quarter ending in December plunged 11.3% from a year ago to $2.51 billion.

Net income in the quarter declined 17% to $99.6 million or 56 cents per diluted share compared to $120.1 million or 66 cents per share from the same quarter last year.

Entergy forecasted operational earnings per share for the year in the range of $4.95 to $5.75.

Hyatt Hotels Corporation ((H)) slumped 3.4% or $1.42 to $40.81 after the hotels and resorts operator stated total revenue in the fourth-quarter ending in December rose 2.8% from a year ago to $1.11 billion.

Net income in the quarter tumbled 79.7% to $37 million or 26 cents per diluted share compared to $182 million or $1.21 per share from the same quarter last year.

International Business Machines Corp ((IBM)) soared 5.5% or $6.92 to $133.02 after the technology company agreed to acquire cloud-based healthcare analytics firm Truven Health Analytics for $2.6 billion, fourth acquisition in the year.

Laboratory Corp. of America Holdings ((LH)) jumped 3% or $3.17 to $108.97 after the said revenue in the fourth-quarter ending in December surged 48.4% from a year ago to $2.24 billion.

Net income in the quarter slumped 4.5% to $114.2 million or $1.11 per diluted share compared to $119.6 million or $1.39 per share from the same quarter last year.

The company lifted revenues estimate in the fiscal 2016 to increase between 7.5% and 9.5% or net revenue of about $8.51 billion and free cash flow to increase in the range of $900 million to $950 million, an increase of approx 24% to 31% from a year ago.

Perrigo Company Plc ((PRGO)) plummeted 9.1% or $13.27 to $131.91 after the Ireland-based healthcare company stated total revenue in the fourth-quarter ending in December jumped 33% from a year ago to $1.42 billion.

Net in the quarter swung to a loss of $107 million or 74 cents per diluted share compared to profit of $70.2 million or 51 cents per share from the same quarter last year.

The healthcare company forecasted reported diluted earnings per share in the year between $5.55 and $5.85 as compared to a loss of 23 cents in this fiscal 2015.

Wal-Mart Stores, Inc ((WMT)) slumped 4.3% or $2.83 to $63.28 after the specialty retailer reported total revenue in the fourth-quarter ending in January fell 1.4% from a year ago to $129.67 billion.

Net income in the quarter declined 7.9% to $4.57 billion or $1.43 per diluted share compared to $4.97 billion or $1.53 per share from the same quarter last year.

Wal-Mart online sales in the quarter jumped 8% and comparable sales for neighbour-hood markets increased about 7%.

The retailer lowered sales forecast in fiscal 2017, ""to be relatively flat"" compared to earlier estimated growth of 3% to 4%.