Dr Pepper in $1.7 B Deal with Bai; Chico

Mukesh Buch
22 Nov, 2016
New York City

Analog Devices net surged. Barnes & Noble net loss narrowed but the book retailer lowered fiscal outlook. Burlington Stores net jumped. Chico''s net swung to profit. Dollar Tree profit soared and the deep discounter lifted earnings forecast. DSW net slid. Dr Pepper agreed to buy Bai in $1.7 billion.

[R]2:10 PM New York – Analog Devices net surged. Barnes & Noble net loss narrowed but the book retailer lowered fiscal outlook. Burlington Stores net jumped. Chico''s net swung to profit. Dollar Tree profit soared and the deep discounter lifted earnings forecast. DSW net slid. Dr Pepper agreed to buy Bai in $1.7 billion.[/R]

Tollbooth Index gained 33.69 or 0.3% to 11,098.34.

Earnings Review

Analog Devices, Inc ((ADI)) soared 5.3% or $3.75 to $73.58 after the integrated circuit maker reported sales in the fourth-quarter ending on October 29 rose 3% from a year ago to $1 billion.

Net income in the quarter surged 208% to $296.2 million or 95 cents per diluted share compared to the $96.3 million or 30 cents per share from the same quarter last year.

The chip maker forecasted revenues in the fiscal first-quarter in the range of $840 million to $900 million and non-GAAP gross margin between 65.5% and 66.0% and non-GAAP diluted earnings per share in the range of 68 cents to 78 cents.

Barnes & Noble, Inc ((BKS)) surged 12.2% or $1.40 to $12.85 after the bookseller said total sales in the in the second-quarter ending on October 29 dropped 4% from a year ago to $858.5 million.

Comparable store sales in the quarter slumped 3.2%.

Net loss in the quarter narrowed to $20.4 million or 29 cents per diluted share compared to the $39.2 million or 52 cents per share from the same quarter last year.

Barnes & Noble estimated comparable store sales in fiscal 2017 to decline in the low single digits and operating profit in the range of $200 million to $250 million but retail store operating profit between $240 million and $280 million.

Burlington Stores Inc ((BURL)) soared 13.7% or $10.25 to $84.43 after the discount stores operator reported net sales in the third-quarter ending on October 29 advanced 9.1% from a year ago to $1.3 billion.

Comparable store sales in the quarter jumped 3.7%.

Net income in the quarter surged 114% to $32.4 million or 45 cents per diluted share compared to the $41.9 million from the same quarter last year.

Chico''s FAS, Inc ((CHS)) jumped 10.4% or $1.45 to $15.44 after the specialty retailer stated net sales in the third-quarter ending on October 29 declined 7.5% from a year ago to $596.9 million.

Comparable store sales in the quarter dropped 4.9%.

Net in the quarter swung to profit $23.6 million or 18 cents per diluted share compared to the loss of $11.6 million or 9 cents per share from the same quarter last year.

Dollar Tree, Inc ((DLTR)) advanced 10.5% or $8.55 to $90.60 after the discount variety retailer reported net sales in the third-quarter ending on October 29 rose 1.1% from a year ago to $5 billion.

Comparable store sales in the quarter increased 1.7%.

Net income in the quarter vaulted 109.5% to $171.6 million or 72 cents per diluted share compared to the $81.9 million or 35 cents per share from the same quarter last year.

Dollar Tree forecasted net sales in the fourth-quarter between $5.59 billion and $5.69 billion, based on low single-digit increases in same-store sales for the Dollar Tree and Family Dollar segments.

The discount retailer lifted diluted earnings per share forecast in the fourth-quarter in the range of $1.24 to $1.33 from prior guidance of $1.21 to $1.30.

DSW Inc ((DSW)) jumped 10.5% or $2.41 to $25.48 after the footwear retailer said sales in the third-quarter ending on October 29 increased 4.7% from a year ago to $697 million.

Comparable store sales in the quarter decreased 2%.

Net income in the quarter fell 0.8% to $38.9 million or 47 cents per diluted share compared to the $39.3 million or 44 cents per share from the same quarter last year.

Dr Pepper Snapple Group Inc ((DPS)) gained 1.7% or $1.50 to $86.75 after the non-alcoholic beverages maker said it plans to acquire antioxidant beverages maker Bai Brands LLC for about $1.7 billion in cash.

The transaction is expected to close early next year.

Movado Group, Inc ((MOV)) soared 14.4% or $3.70 to $29.45 after the watches maker said net sales in the third-quarter ending in October slipped 3.1% from a year ago to $179.8 million.

Net income in the quarter declined 6% to $20.2 million or 87 cents per diluted share compared to the $21.5 million or 92 cents per share from the same quarter last year.

Tech Data Corp ((TECD)) advanced 3.8% or $3.19 to $87.36 after the technology products wholesale distributor stated net sales in the third-quarter ending in October rose 1% from a year ago to $6.5 billion.

Net income in the quarter plummeted 13% to $36.5 million or $1.03 per diluted share compared to the $41.9 million or $1.18 per share from the same quarter last year.