Windstream, EarthLink in $1.1 B Deal; Cognizant, Sysco Profit Soar

Mukesh Buch
07 Nov, 2016
New York City

Blue Nile agreed to be acquired by Bain Capital and Bow Street for $500 million. Cognizant net surged 12% on 8% jump in revenues. Dean Foods profit plunged 28%. Rockwell Automation lifted revenue forecast. Sotheby

[R]2:10 PM New York – Blue Nile agreed to be acquired by Bain Capital and Bow Street for $500 million. Cognizant net surged 12% on 8% jump in revenues. Dean Foods profit plunged 28%. Rockwell Automation lifted revenue forecast. Sotheby’s net loss widened. Sysco net soared 33%.[/R]

Tollbooth Index soared 198.36 or 1.9% to 10,788.40.

Earnings Review

Blue Nile Inc ((NILE)) surged 33.9% or $10.34 to $40.78 after the diamonds and fine jewellery online retailer agreed to be acquired by group of investor led by Bain Capital Private Equity and Bow Street LLC for about $500 million in cash.

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

Separately, the diamond retailer said revenues in the third-quarter ending in September slumped 4.4% from a year ago to $105.1 million.

Net income in the quarter tumbled 35% to $1.3 million or 11 cents per diluted share compared to the $2 million or 17 cents per share from the same quarter last year.

Cognizant Technology Solutions Corp ((CTSH)) advanced 4.5% or $2.35 to $54.43 after the business process services provider reported revenues in the third-quarter ending in September soared 8.4% from a year ago to $3.45 billion.

Net income in the quarter surged 11.9% to $444.4 million or 73 cents per diluted share compared to the $397.2 million or 65 cents per share from the same quarter last year.

Cognizant forecasted revenues in the fourth-quarter in the range of $3.45 billion to $3.51 billion and diluted earnings per share between 85 cents and 88 cents.

In the year, the outsourcing services provider estimated revenues between $13.47 billion and $13.53 billion and diluted earnings per share in the range of $3.38 to $3.41.

Dean Foods Co ((DF)) gained 2.2% or 40 cents to $18.86 after the food and beverage group said net sales in the third-quarter ending in September slumped 3.4% from a year ago to $1.96 billion.

Net income in the quarter plunged 28% to $14.5 million or 16 cents per diluted share compared to the $20.2 million or 22 cents per share from the same quarter last year.

Dean Foods forecasted diluted earnings per share in the fourth-quarter between 37 cents and 45 cents.

Rockwell Automation ((ROK)) jumped 4.9% or $5.72 to $123.27 after the electrical equipment maker reported revenues in the fourth-quarter ending in September dropped 4.3% from a year ago to $1.54 billion.

Net income in the quarter declined 8% to $185.2 million or $1.43 per diluted share compared to the $201.3 million or $1.50 per share from the same quarter last year.

In the fiscal 2017, Rockwell estimated revenues to increase in the range of 1% to 5% and diluted earnings per share between $5.46 and $5.86.

Sotheby’s ((BID)) soared 6.9% or $2.41 to $36.97 after the auction services provider stated total revenues in the third-quarter ending in September plunged 33.7% from a year ago to $91.5 million.

Net loss in the quarter widened to $54.5 million or 99 cents per diluted share compared to the $17.9 million or 26 cents per share from the same quarter last year.

Sysco Corporation ((SYY)) surged 9.1% or $4.37 to $52.42 after the food products distributor reported sales in the first-quarter ending in September jumped 11.2% from a year ago to $13.9 billion.

Net income in the quarter soared 32.5% to $323.9 million or 58 cents per diluted share compared to the $244.4 million or 41 cents per share from the same quarter last year.

Windstream Holdings, Inc ((WIN)) edged up 1 cent to $7.24 after the network communications and technology provider and rival EarthLink Holdings Corp agreed to a all-stock merger for about $1.1 billion, including debt.

Under the terms, shareholders of EarthLink will receive 0.818 shares of Windstream per share.

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