BNC Bancorp in $1.9 B Deal with Pinnacle, McDonald's Net Falls

Mukesh Buch
23 Jan, 2017
New York City

BNC Bancorp agreed to be acquired by Pinnacle Financial for $1.9 billion. Sierra Bancorp net rose 3% and revenues jumped 16%. Halliburton net swung to a loss. McDonald''s net fell 1% but same store sales rose 2.7%. Petmed net plunged 8%.

[R]12:10 PM New York – BNC Bancorp agreed to be acquired by Pinnacle Financial for $1.9 billion. Sierra Bancorp net rose 3% and revenues jumped 16%. Halliburton net swung to a loss. McDonald''s net fell 1% but same store sales rose 2.7%. Petmed net plunged 8%.[/R]

Tollbooth Index slipped 66.83 or 0.6% to 11,300.46.

Earnings Review

American International Group Inc ((AIG)) fell 17 cents to $66.37 after the insurance group agreed to pay $10.2 billion to Warren Buffett''s Berkshire Hathaway Inc for reinsurance that covers ""long-tail"" exposures for accident years 2015 and prior.

This carried reserves of approximately $34 billion, net of discount as of January 2016 and the payment comprises $9.8 billion plus interest that will be made by June 30.

BNC Bancorp ((BNCN)) decreased 1.5% or 50 cents to $32.70 after the commercial banking services provider agreed to be acquired by Pinnacle Financial Partners Inc for about $1.9 billion in stock.

BNC shareholders will receive 0.5235 shares of Pinnacle share for every BNC share. The deal is valued at $35.70 per share.

Halliburton Company ((HAL)) slumped 3.1% or $1.73 to $54.75 after the oil and gas services provider reported total revenues in the fourth-quarter ending in December increased 4.9% from a year ago to $4.02 billion.

Net in the quarter swung to a loss of $149 million or 17 cents per diluted share compared to the profit of $6 million or 1 cent per share in the same quarter last year.

McDonald''s Corporation ((MCD)) slipped 86 cents to $121.40 after the fast food chain reported total revenues in the fourth-quarter ending in December declined 5% from a year ago to $6.03 billion.

Global same store sales in the quarter increased 2.7%. In the U.S., comparable sales declined 1.3%. Comparable sales in the international lead segment increased 2.8%, jumped 4.7% in China and in Japan surged 11%.

Net income in the quarter fell 1% to $1.2 billion or $1.44 per diluted share compared to $1.2 billion or $1.31 per share in the same quarter last year.

“Our efforts yielded a more streamlined operations that generated solid fourth quarter and full year results, including strongest annual global comparable sales growth since 2011,” chief executive officer Stephen J. Easterbrook said.

Petmed Express Inc ((PETS)) rose 1.1% or 25 cents to $22.45 after the dogs and cats health products maker said net sales in the third-quarter ending in December grew 3.8% from a year ago to $52.9 million.

Net income in the quarter declined 8% to $4.8 million compared to $4.9 million and diluted earnings per share were flat at 40 cents matching the results in the year ago quarter.

Sierra Bancorp ((BSRR)) advanced 3% or 81 cents to $27.90 after the retail and commercial banking services provider said interest income in the fourth-quarter ending in December jumped 16% from a year ago to $18.7 million.

Net income in the quarter rose 3% to $5.5 million compared to the $5.3 million and diluted earnings per share were flat at 40 cents in the same quarter last year.

Silgan Holdings Inc ((SLGN)) advanced 2.9% or $1.61 to $56.39 after the consumer products packaging group agreed to acquire soap dispensers and perfume sprayers business of WestRock Company for about $1.03 billion.

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