McDonald's Sells China Unit, Mars to Buy VCA for $9.1 B

Mukesh Buch
09 Jan, 2017
New York City

Acuity Brands net surges 19% on 16% jump in revenues. Commercial Metals net plunged 75%. Global Payments net tumbled. McDonald''''s agreed to sell stake in China and Hong Kong. Mars plans to buy VCA for $9.1 billion. UnitedHealth agreed to buy Surgical Care for $2.3 billion.

[R]12:10 PM New York – Acuity Brands net surges 19% on 16% jump in revenues. Commercial Metals net plunged 75%. Global Payments net tumbled. McDonald''s agreed to sell stake in China and Hong Kong. Mars plans to buy VCA for $9.1 billion. UnitedHealth agreed to buy Surgical Care for $2.3 billion.[/R]

Tollbooth Index edged up 5.81 to 11,330.

Earnings Review

Acuity Brands, Inc ((AYI)) tumbled 17.2% or $40.91 to $196.70 after the lighting solutions provider reported revenues in the first-quarter ending in November soared 16% from a year ago to $851.2 million.

Net income in the quarter surged 19% to $81.7 million or $1.86 per diluted share compared to the $68.4 million or $1.57 per share in the same quarter last year.

CEVA, Inc ((CEVA)) jumped 2.9% or 95 cents to $33.30 after the intellectual property license provider lifted revenues forecast in the fourth-quarter of about $21.2 million compared to the earlier estimated range of $18.5 million to $19.5 million.

CEVA said earnings per share to exceed the previously forecasted range between 15 cents and 17 cents.

The company schedule to release its fourth quarter and year end results on February 1.

Commercial Metals Company ((CMC)) declined 5.8% or $1.33 to $21.27 after the steel and metal products recycler stated revenues in the first-quarter ending in November slumped 6.9% from a year ago to $1.1 billion.

Net income in the quarter plunged 74.9% to $6.3 million or 5 cents per diluted share compared to the $25.1 million or 21 cents per share in the same quarter last year.

Global Payments Inc ((GPN)) soared 7.1% or $5.07 to $79.52 after the payment technology provider said revenues in the second-quarter ending in November advanced 30.4% from a year ago to $941.8 million.

Net income in the quarter tumbled 37.2% to $49.5 million or 32 cents per diluted share compared to the $78.8 million or 60 cents per share in the same quarter last year.

The payment technology provider forecasted revenues in the year of $3.35 billion to $3.45 billion, represents growth of about 18% to 21% and earnings per share of about $3.70 to $3.90, representing growth of 16% to 23%.

Genesco Inc ((GCO)) advanced 3.3% or $1.90 to $59.05 after the footwear, apparel and accessories retailer and wholesaler said comparable sales in the quarter ending on January 5, including both stores and direct sales, were flat.

The retailer said same store sales fell 2% but sales in e-commerce and catalog sales businesses jumped 11%.

Genesco forecasted diluted earnings per share in the year ending on January 28, in the range of $3.80 to $4.

The footwear, apparel and accessories retailer scheduled to release its fourth quarter and full-year results on March 10.

McDonald''s Corp ((MCD)) slid 6 cents to $120.71 after the fast-food chain operator agreed to sell a controlling stake in its China and Hong Kong operations to a group of investors, Chinese state-backed Citic Limited and the American private-equity corporation Carlyle Group for about $1.7 billion.

However, McDonald''s will retain controlling stake of about 20%.

Mars Inc, the privately held chocolates, snacks and pet food maker said its intends to acquire animals hospitals operator VCA Inc for $93 per share, a premium of 31.4% a closing price of Friday or about $7.7 billion. The deal valued $9.1 billion, including $1.4 billion in debt.

VCA operates approx 800 animal hospitals and 60 diagnostic laboratories in the United States and Canada and Mars Petcare business runs more than 900 pet clinics.

VCA Inc stock surged 28.6% to $91 and the animal healthcare company is scheduled to release fourth quarter results on February 9.

The transaction is expected to close in the third-quarter of this year.

Merrimack Pharmaceuticals Inc ((MACK)) surged 8.9% or 31 cents to $3.91 after the biopharmaceutical group agreed to divest its assets to France-based pharmaceutical products maker Ipsen SA, including pancreatic cancer drug Onivyde for up to $1 billion.

UnitedHealth Group Inc ((UNH)) fell 84 cents to $161.57 after the diversified healthcare services provider agreed to buy Surgical Care Affiliates Inc. for $57 per share or about $2.3 billion in cash and stock.