The EU Clears Dow, Du Pont Merger; G-III Apparel Plunges 13%

Mukesh Buch
27 Mar, 2017
New York City

Cal-Maine Foods revenues dropped 32% as egg prices skid. The European Commission approved Dow and Du Pont merger. G-III Apparel lifted first-quarter forecast. Gazit Globe net surged 39%. Zynerba Pharma net loss widened.

[R]12:45 PM New York – Cal-Maine Foods revenues dropped 32% as egg prices skid. The European Commission approved Dow and Du Pont merger. G-III Apparel lifted first-quarter forecast. Gazit Globe net surged 39%. Zynerba Pharma net loss widened.[/R]

Tollbooth Index edged down 8.96 to 11,531.50.

Earnings Review

Cal-Maine Foods Inc ((CALM)) rose 15 cents to $37.50 after the shell eggs producer said revenues in the third-quarter ending on February 25 plunged 31.8% from a year ago to $306.5 million.

Net income in the quarter tumbled 93.6% to $4.1 million or 9 cents per diluted share from $64.2 million or $1.33 in the same quarter last year.

Dow Chemical Co ((DOW)) gained 1.3% or 80 cents to $63.88 after the European Commission approved $130 billion merger of diversified chemicals manufacturer and E I Du Pont De Nemours And Co.

G-III Apparel Group, Ltd ((GIII)) tumbled 12.5% or $2.85 to $20.06 after the apparel and accessories retailer said net sales in the fourth-quarter ending in January soared 14.4% from a year ago to $603 million.

Net in the quarter swung to a loss of $20.1 million or 42 cents per diluted share from profit of $8 million or 16 cents in the same quarter last year.

In the first-quarter ending G-III lifted net sales estimate to about $500 million and net loss between $20 million and $25 million or 41 cents and 51 cents per share compared to net sales of $457 million and net income of $2.8 million and diluted earnings per share of 6 in the first-quarter of fiscal 2017.

The retailer forecasted net sales in fiscal 2018 of about $2.73 billion and net income between $40 million and $45 million and diluted earnings per share in the range of 80 cents to 90 cents.

Gazit Globe Ltd advanced 2.5% or 25 cents to $10.47 after the real estate developer reported revenues in the fourth-quarter ending in December were flat from a year ago at $4.8 million.

Net income in the quarter soared 39.1% to $3.2 million or $3.96 per diluted share from $2.3 million or $3.45 in the same quarter last year.

Zynerba Pharmaceuticals Inc ((ZYNE)) jumped 4.3% or 89 cents to $20.54 after the specialty pharmaceutical products maker stated revenues in the fourth-quarter ending in December were negligible.

Net loss in the quarter widened to $6.7 million or 71 cents per diluted share from $5.4 million or 62 cents in the same quarter last year.