Aetna and Humana Abandon Merger Plan; Discovery, T-Mobile Net Soar

Mukesh Buch
14 Feb, 2017
New York City

Aetna and Humana mutually ended the $34 billion mega-merger deal. Discovery Communications net soared 39%. Diebold Nixdorf net swung to a loss. FLIR lifted 2017 outlook. Lincoln Electric net jumped 10%. T-Mobile US net soared 31%. Watsco profit surged 12%.

[R]12:20 PM New York – Aetna and Humana mutually ended the $34 billion mega-merger deal. Discovery Communications net soared 39%. Diebold Nixdorf net swung to a loss. FLIR lifted 2017 outlook. Lincoln Electric net jumped 10%. T-Mobile US net soared 31%. Watsco profit surged 12%.[/R]

Tollbooth Index gained 15.73 to 11,597.40.

Earnings Review

Aetna Inc ((AET)) gained 1.2% or $1.41 to $123.46 after the diversified healthcare benefits provider and Humana Inc officially confirmed that they mutually ended the $34 billion merger agreement.

Aetna confirmed that it will pay $1 billion to Humana as break-up fee, the part of the agreements, if the deal is not approved.

On January 23, the U.S. federal judge blocked the deal on antitrust grounds and ruled out the combination may stifle competition for retirees.

Aetna had terminated its previously announced agreement to sell certain Medicare Advantage assets to Molina Healthcare, Inc and agreed to pay the applicable fees associated with that termination.

“We are disappointed to take this course of action after 19 months of planning,” chairman and chief executive officer Mark T. Bertolini said.

Discovery Communications Inc ((DISCA)) slumped 3.2% or 93 cents to $28.10 after the pay-TV, free-to-air and broadcasting services provider reported revenues in the fourth-quarter ending in December increased 2% from a year ago to $1.7 billion.

Net income in the quarter soared 39% to $304 million or 52 cents per diluted share compared to $219 million or 34 cents per share in the same quarter last year.

Diebold Nixdorf Inc ((DBD)) soared 6.5% or $1.75 to $28.90 after the automated teller machine maker said revenues in the fourth-quarter ending in December soared 103.7% from a year ago to $1.2 billion.

Net in the quarter swung to a loss of $77.8 million or $1.04 per diluted share compared to profit of $32.6 million or 50 cents per share in the same quarter last year.

FLIR Systems, Inc ((FLIR)) gained 1.5% or 53 cents to $36.93 after the security and surveillance systems developer reported revenues in the fourth-quarter ending in December jumped 8% from a year ago to $474.7 million.

Net income in the quarter declined 12.4% to $61.5 million or 45 cents per diluted share compared to $70.2 million or 51 cents per share in the same quarter last year.

FLIR lifted revenue forecast in 2017 in the range of $1.78 billion to $1.83 billion and diluted earnings per share between $1.81 and $1.91, represents 7% to 10% growth in revenue and 7% to 13% growth in diluted earnings per share.

Lincoln Electric Holdings, Inc ((LECO)) fell 25 cents to $83.45 after the welding, cutting and brazing products maker stated revenues in the fourth-quarter ending in December slid 0.7% from a year ago to $563.8 million.

Net income in the quarter jumped 9.7% to $53.4 million or 81 cents per diluted share compared to $48.7 million or 68 cents per share in the same quarter last year.

T-Mobile US Inc ((TMUS)) rose 48 cents to $61.55 after the mobile communications services provider reported revenues in the fourth-quarter ending in December surged 23.4% from a year ago to $10.2 billion.

Net income in the quarter soared 31.3% to $390 million or 45 cents per diluted share compared to $297 million or 34 cents per share in the same quarter last year.

T-Mobile said total net customer additions in the quarter were 2.1 million and total postpaid net addition were about 1.2 million and postpaid phone net additions in the quarter were 933,000 and prepaid net additions totaled 541,000.

Watsco Inc ((WSO)) declined 3.5% or $5.43 to $150.79 after the air conditioning, heating and refrigeration equipment distributor reported revenues in the fourth-quarter ending in December rose 1% from a year ago to $913.6 million.

Net income in the quarter surged 12% to $29.6 million or 81 cents per diluted share compared to $26.5 million or 75 cents per share in the same quarter last year.