Rockwell in $6.4 B Deal with B/E Aerospace, TD Ameritrade to Buy Scottrade

Mukesh Buch
24 Oct, 2016
New York City

ACCO net plunged. Eagle Materials net doubled. Kimberly Clark lowered fiscal outlook. Philips net surged. Rockwell Collins agreed to acquire B/E Aerospace for about $6.4 billion. TD Ameritrade agreed to buy Scottrade for $4 billion.

[R]12:50 PM New York – ACCO net plunged. Eagle Materials net doubled. Kimberly Clark lowered fiscal outlook. Philips net surged. Rockwell Collins agreed to acquire B/E Aerospace for about $6.4 billion. TD Ameritrade agreed to buy Scottrade for $4 billion.[/R]

Tollbooth Index edged up 78.19 or 0.7% to 10,957.62.

Earnings Review

ACCO Brands Corporation ((ACCO)) surged 19.4% or $1.77 to $10.88 after the school, office and consumer products provider said net sales in third-quarter ending in September jumped 4% from a year ago to $431.3 million.

Net income in the quarter plunged 30% to $22.7 million or 21 cents per diluted share compared to the $32.6 million or 30 cents per share from the same quarter last year.

ACCO Brands reaffirmed its sales forecast in the year to increase in low single-digits and diluted earnings per share in the range of 84 cents to 86 cents and free cash flow of about$145 million.

Separately, the company agreed to acquire European office products rival Esselte Group Holdings AB from private equity firm J.W. Childs for $333 million in cash.

The transaction is expected to be completed in early 2017.

Eagle Materials, Inc ((EXP)) gained 1.8% or $1.42 to $78.80 after the construction products supplier said revenues in second-quarter ending in September rose 1% from a year ago to $332.7 million.

Net income in the quarter double to $60.2 million or $1.25 per diluted share compared to the $29.8 million or 59 cents per share from the same quarter last year.

Kimberly Clark Corp ((KMB)) slumped 3.1% or $3.70 to $115.88 after the sanitary products maker reported net sales in third-quarter ending in September dropped 2.6% from a year ago to $4.6 billion.

Net income in the quarter plunged 6.4% to $550 million or $1.52 per diluted share compared to the $517 million or $1.41 per share from the same quarter last year.

Kimberly Clark lowered diluted earnings per share in fiscal 2016 between $5.92 and $6.05 compared to the earlier estimated range of $5.92 to $6.15 and sales growth of 2% from the previous guidance of 3% to 5%.

Koninklijke Philips NV ((PHG)) jumped 4.1% or $1.15 to $29.58 after the Netherlands-focused healthcare and medical equipment maker said sales in the third-quarter ending in September increased 1% from a year ago to €5.90 billion.

Net income in the quarter surged 18.2% from a year ago to €383 million compared to the €324 million and diluted earnings per share increased to €0.40 from €0.34.

Rockwell Collins, Inc ((ROK)) plunged 6.4% or $5.43 to $79.05 after the aerospace and defense products maker reported total sales in the fourth-quarter ending in September advanced 4% from a year ago to $1.4 billion.

Net income in the quarter soared 13% to $208 million or $1.58 per diluted share compared to the $184 million or $1.38 per share from the same quarter last year.

The aerospace products provider estimated revenues in the year between $5.3 billion and $5.4 billion and operating margin of about 21% and cash flow from operations in the range of $600 million to $700 million.

Separately, Rockwell Collins agreed to acquire the largest supplier of aircraft-cabin equipment B/E Aerospace Inc for about $6.4 billion in cash and stock, in addition to the assumption of $1.9 billion in net debt.

Under the terms, investors of B/E Aerospace will get $34.10 in cash and $27.90 in shares of Rockwell Collins common stock.

The transaction is expected to close in the spring of 2017.

TD Ameritrade Holding Corp ((AMTD)) dropped 3.2% or $1.19 to $35.89 after the brokerage and financial services provider said net revenues in the fourth-quarter ending in September slid 0.2% from a year ago to $829 million.

Net income in the quarter slumped 13% to $185 million or 35 cents per diluted share compared to the $216 million or 40 cents per share from the same quarter last year.

The brokerage services provider forecasted diluted earnings per share in the full-year in the range of $1.50 to $1.80.

Separately, TD Ameritrade and its Canada-based parent Toronto-Dominion Bank agreed to acquire Scottrade Financial Services Inc for $4 billion in a cash and stock deal.

The transaction is expected to close by the end of September 2017.

T-Mobile Us Inc ((PCS)) traded unchanged at $11.84 after the mobile services provider stated total revenues in third-quarter ending in September soared 17.8% from a year ago to $9.2 billion.

Net income in the quarter surged 165% to $366 million or 42 cents per diluted share compared to the $138 million or 15 cents per share from the same quarter last year.

VF Corporation ((VFC)) decreased 2.7% or $146 to $53.27 after the branded lifestyle apparel, footwear and accessories maker said revenues in third-quarter ending in September fell 1% from a year ago to $3.5 billion.

Net income in the quarter jumped 8% to $498.5 million or $1.19 per diluted share compared to the $459.9 million or $1.07 per share from the same quarter last year.