Fortress Agrees to $3.3 B Deal with SoftBank, AIG Net Loss Widens

Mukesh Buch
15 Feb, 2017
New York City

AIG said net loss widened. Analog Devices net and revenues surged. Agilent Technologies soared 39%. Fortress Investment surged after SoftBank agreed to be acquire for $3.3 billion. Fossil net declined 29%. Hilton net swung to a loss. PepsiCo net plunged 18%.

[R]2:10 PM New York – AIG said net loss widened. Analog Devices net and revenues surged. Agilent Technologies soared 39%. Fortress Investment surged after SoftBank agreed to be acquire for $3.3 billion. Fossil net declined 29%. Hilton net swung to a loss. PepsiCo net plunged 18%.[/R]

Tollbooth Index rose 17.75 or 0.2% to 11,666.58.

Earnings Review

American International Group Inc ((AIG)) plunged 9.3% or $6.24 to $60.65 after the insurance services provider reported net loss in the fourth-quarter ending in December widened to $3.04 billion or $2.96 per diluted share compared to $1.84 billion or $1.50 per share in the same quarter last year.

The insurer said results includes $5.6 billion or $3.56 per share impact from prior-year adverse reserve charge to cover possible future claims.

Most of loss in the quarter was for long-term risks on U.S. commercial insurance policies that are already written.

However, in January, the insurer agreed to pay about $10.2 billion to a subsidiary of Berkshire Hathaway Inc to take on the risk associated with those policies.

Analog Devices, Inc ((ADI)) gained 2.4% or $1.95 to $79.79 after the integrated circuits maker said revenues in the fourth-quarter ending in December soared 28% from a year ago to $984.4 million.

Net income in the quarter surged 32% to $217.2 million or 69 cents per diluted share compared to $164.5 million or 52 cents per share in the same quarter last year.

The chip maker forecasted revenues in the year between $870 million and $950 million and earnings per share in the range of 84 cents to 86 cents.

Agilent Technologies Inc ((A)) increased 1.9% or $1 to $51.39 after the medical diagnostics equipment maker said revenues in the first-quarter ending in December advanced 4% from a year ago to $1.07 billion.

Net income in the quarter soared 39% to $168 million or 52 cents per diluted share compared to $121 million or 36 cents per share in the same quarter last year.

Fortress Investment Group LLC ((FIG)) surged 28.5% or $1.77 to $7.98 after the investment advisor agreed to be acquired by Japan-based telecommunications, internet and solar energy giant SoftBank Group Corp for about $3.3 billion.

Transaction is expected to close in the second-half of 2017.

""""We join a company with tremendous scale and resources, and a culture completely aligned with our focus on performance, service and innovation,"""" co-chairmen Pete Briger and Wes Edens said in a joint statement.

Fossil Group Inc ((FOSL)) tumbled 16.9% or $3.86 to $19.01 after the watches and accessories maker stated net sales in the fourth-quarter ending in December slipped 3.3% from a year ago to $959.2 million.

Net income in the quarter declined 29.4% to $49.7 million or $1.03 per diluted share compared to $70.4 million or $1.46 per share in the same quarter last year.

Hilton Worldwide Holdings Inc ((HLT)) increased 1.3% or 73 cents to $59.18 after the hotels, motels and cruise operator said sales in the fourth-quarter ending in December rose 2.2% from a year ago to $2.92 billion.

Net in the quarter swung to a loss of $387 million or $1.17 per diluted share compared to profit of $814 million or $2.47 per share in the same quarter last year.

Hilton reaffirmed revenue per available room in fiscal 2017 to grow between 1% and 3% and earnings per share to increase between $1.65 and $1.75.

PepsiCo, Inc ((PEP)) fell 16 cents to $106.76 after the food and beverage maker reported revenues in the fourth-quarter ending in December jumped 5% from a year ago to $19.52 billion.

Net income in the quarter plunged 18% to $1.4 billion or 97 cents per diluted share compared to profit of $1.7 billion or $1.17 per share in the same quarter last year.

The beverage maker said revenues in Frito-Lay North America soared 10% to $4.9 billion while North America beverage sales jumped 8% to $6.3 billion.