Stanley Black in $2 B Deal with Newell, Polaris to Buy Transamerican

Mukesh Buch
12 Oct, 2016
New York City

Barracuda net swung to profit. Fortinet plunged after lowered revenues and profit forecast. Healthcare Services net soared. Polaris agreed to buy Transamerican Auto Parts for $665 million. Stanley Black agreed to acquire tools business of Newell Brands Inc for about $1.95 billion.

[R]12:20 PM New York – Barracuda net swung to profit. Fortinet plunged after lowered revenues and profit forecast. Healthcare Services net soared. Polaris agreed to buy Transamerican Auto Parts for $665 million. Stanley Black agreed to acquire tools business of Newell Brands Inc for about $1.95 billion.[/R]

Tollbooth Index increased 24.18 or 0.2% to 10,896.42.

Earnings Review

Blackhawk Network Holdings Inc ((HAWK)) surged 7.8% or $2.50 to $34.43 after the prepaid payment network services provider said total revenues in the third-quarter ending in September rose 3% from a year ago to $361.6 million.

Net loss in the quarter widened to $5.1 million or 9 cents per diluted share compared to the $3.6 million or 7 cents per share from the same quarter last year.

Blackhawk forecasted revenues in the year to jump between 8% and 12% or in the range of $1.95 billion to $2.01 billion while net income to decline between 72% and 46% or in the range of $13 million to $25 million and diluted earnings per share to drop between 22 cents and 41 cents.

Barracuda Networks Inc ((CUDA)) soared 13% or $3.03 to $26.36 after the security and data protection solution provider stated total revenues in the second-quarter ending in August advanced 12% from a year ago to $87.9 million.

Net in the quarter swung to profit $2.4 million or 5 cents per diluted share compared to the loss of $2.2 million or 4 cents per share from the same quarter last year.

Fortinet Inc ((FTNT)) tumbled 12.6% or $4.25 to $29.77 after the cyber security solutions provider lowered revenue forecast in the third-quarter between $311 million and $316 million compared to the earlier estimated range of $319 million to $324 million.

Fortinet also lowered its earnings per share estimate in the quarter in the range of 15 cents to 16 cents compared to the previously forecasted between 17 cents to 18 cents.

Healthcare Services Group, Inc ((HCSG)) dropped 2.6% or $1.03 to $38.43 after the housekeeping services provider reported revenues in the third-quarter ending in September jumped 9% from a year ago to $392.7 million.

Net income in the quarter soared 15.2% to $19.7 million or 27 cents per diluted share compared to the $17.1 million or 24 cents per share from the same quarter last year.

LPL Financial Holdings Inc ((LPLA)) slumped 4.4% or $1.46 to $31.55 after Reuters reported that the brokerage and investment advisory services provider is working with Goldman Sachs to explore strategic alternatives including possible sale- off itself.

Polaris Industries Inc ((PII)) jumped 3.7% or $2.71 to $76.74 after the off-road and recreational vehicles maker agreed to buy off-road Jeep and truck accessories maker Transamerican Auto Parts Co for about $665 million.

Stanley Black & Decker, Inc ((SWK)) increased 2.3% or $2.72 to $120.38 after the industrial machinery and equipment provider agreed to acquire tools business of Newell Brands Inc for about $1.95 billion in cash.

The transaction is expected to close in first-half of 2017.