Allergan in $2.5 B Deal with Zeltiq, Teva Pharma Net Swings to Loss

Mukesh Buch
13 Feb, 2017
New York City

Allergan agreed to acquire Zeltiq for $2.5 billion. First Data net swung to profit. HCP net swung to profit after revenues jumped. Insperity net surged 51%. Teva Pharmaceutical net swung to loss but reaffirmed revenues outlook. Versum net tumbled 75%. WEX profit plunged 22%.

[R]10:40 AM New York – Allergan agreed to acquire Zeltiq for $2.5 billion. First Data net swung to profit. HCP net swung to profit after revenues jumped. Insperity net surged 51%. Teva Pharmaceutical net swung to loss but reaffirmed revenues outlook. Versum net tumbled 75%. WEX profit plunged 22%.[/R]

Tollbooth Index increased 38.90 or 0.3% to 11,584.76.

Earnings Review

Allergan Plc ((AGN)) slid 6 cents to $246.30 after the Ireland-based branded and generic drugs maker agreed to acquire Zeltiq Aesthetics Inc for $56.50 per share or $2.45 billion, a premium of 14.4% to the close price of stock on Friday.

The transaction is expected to close in the second-half of 2017 and Zeltiq Aesthetics Inc’s stock in the pre-market trading soared 12.4% to $55.50.

First Data Corporation ((FDC)) advanced 2.7% or 43 cents to $16.25 after the electronic payment services provider reported revenues in the fourth-quarter ending in December fell 1% from a year ago to $2.9 billion.

Net in the quarter swung to profit $192 million or 21 cents per diluted share compared to loss of $1.2 billion or 22 cents per share in the same quarter last year.

The payment services provider said prior year net loss included debt extinguishment charges and one-time IPO-triggered expenses of about $1.3 billion.

HCP, Inc ((HCP)) increased 1.2% or 37 cents to $30.70 after the healthcare real estate developer said total revenues in the fourth-quarter ending in December advanced 3.8% from a year ago to $539.9 million.

Net in the quarter swung to profit $58.4 million or 12 cents per diluted share compared to loss of $599.2 million or $1.29 per share in the same quarter last year.

Insperity Inc ((NSP)) soared 10.1% or $7.39 to $80.80 after the human resources services provider stated revenues in the fourth-quarter ending in December jumped 13% from a year ago to $729.1 million.

Net income in the quarter surged 50.5% to $9.3 million or 45 cents per diluted share compared to $6.2 million or 26 cents per share in the same quarter last year.

Teva Pharmaceutical Industries Ltd ((TEVA)) jumped 4.3% or $1.37 to $33.56 after the Israel-based specialty and generic medicines maker reported revenues in the fourth-quarter ending in December surged 33% from a year ago to $6.5 billion.

Net in the quarter swung to loss of $1 billion or $1.10 per diluted share compared to profit of $485 million or 55 cents per share in the same quarter last year.

Teva reaffirmed revenues in the year in the range of $23.8 billion to $24.5 billion and non-GAAP earnings per share between $4.90 and 5.30.

Versum Materials Inc ((VSM)) rose 20 cents to $28.83 after the specialty gases and chemicals provider stated revenues in the first-quarter ending in December jumped 10% from a year ago to $270.8 million.

Net income in the quarter tumbled 74.6% to $5.3 million or 12 cents per diluted share compared to $20.9 million or 54 cents per share in the same quarter last year.

WEX Inc ((WEX)) gained 72 cents to $120 after the corporate payment solutions provider said total revenues in the fourth-quarter ending in December soared 37% from a year ago to $290.8 million.

Net income in the quarter plunged 22% to $50.8 million or 47 cents per diluted share compared to $65.2 million or 60 cents per share in the same quarter last year.

WEX estimated revenue in the first-quarter between $275 million and $285 million and net income in the range of $50 million to $53 million and diluted earnings per share between $1.16 and $1.24.