Japan Based Renesas to Buy Intersil, United Natural Foods Net Declines

Manish Shah
13 Sep, 2016
New York City

Farmer Brothers net swung to profit. GMS net soared after revenues surged 22%. Intersil agreed to be acquired by the Japan-based rival Renesas for $3.2 billion. United Natural Foods net declined 4%.

[R]2:00 PM New York – Farmer Brothers net swung to profit. GMS net soared after revenues surged 22%. Intersil agreed to be acquired by the Japan-based rival Renesas for $3.2 billion. United Natural Foods net declined 4%.[/R]

Tollbooth Index slumped 102.48 or 0.9% to 10,852.06.

Earnings Review

Farmer Brothers Co ((FARM)) slipped 1.4% or 46 cents to $33 after the coffee, tea and culinary products producer said net sales in the fourth-quarter ending in June rose 1.2% from a year ago to $134.2 million.

Net in the quarter swung to profit $84.2 million or $5.05 per diluted share compared to the net loss of $2.2 million or 13 cents per share from the same quarter last year.

Separately today, the tea, coffee distributor agreed to acquire Arizona-based China Mist Brands, Inc. for $10.8 million,

GMS Inc ((GMS)) declined 4.5% or $1.01 to $21.44 after the wallboard and ceilings systems distributor reported net sales in the first-quarter ending in July surged 21.5% from a year ago to $549.8 million.

Net income in the quarter soared to $9.2 million or 24 cents per diluted share compared to the $3 million or 9 cents per share from the same quarter last year.

Intersil Corporation ((ISIL)) jumped 10.2% or $2.01 to $21.77 after the chipmaker agreed to be acquired by the Japan-based rival Renesas Electronics Corporation for $22.50 per share, a premium of 43.9% to the company’s closing price of August 19 or about $3.2 billion in cash.

USA Technologies, Inc ((USAT)) edged up 3 cents to $4.72 after the electronic payment services provider said total revenues in the fourth-quarter ending in June soared 24% from a year ago to $21.9 million.

Net loss in the quarter widened to $0.9 million or 2 cents per diluted share compared to the $0.2 million or 1 cent per share from the same quarter last year.

United Natural Foods, Inc ((UNFI)) gained 1% or 42 cents to $42.24 after the specialty foods and non-food products distributor reported net sales in the fourth-quarter ending in July jumped 7.4% from a year ago to $2.21 billion.

Net income in the quarter dropped 3.9% to $34.7 million or 69 cents per diluted share compared to the $36.1 million or 72 cents per share from the same quarter last year.