Panera Bread in $7.5 B LBO Deal; Monsanto, Walgreens Net Soar

Mukesh Buch
05 Apr, 2017
New York City

Schulman net swung to profit. Greenbrier revenues plunged 15%. Monsanto profit and revenues surged. Panera Bread agreed to be acquired by JAB Holding for $7.5 billion. Staples is looking for a buyer. Walgreens net jumped 14%.

[R]2:10 PM New York – Schulman net swung to profit. Greenbrier revenues plunged 15%. Monsanto profit and revenues surged. Panera Bread agreed to be acquired by JAB Holding for $7.5 billion. Staples is looking for a buyer. Walgreens net jumped 14%.[/R]

Tollbooth Index increased 52.20 or 0.5% to 11,635.32.

Earnings Review

A Schulman Inc ((SHLM)) jumped 3.3% or $1 to $31 after the plastic formulated products supplier said net sales in the second-quarter ending in February fell 3.9% from a year ago to $568.7 million.

Net in the quarter swung to profit $3.2 million or 11 cents per diluted share from a loss of $0.3 million or 1 cent in the same quarter last year.

In the fiscal full-year, Schulman estimated diluted earnings per share remains in the range of $2.08 to $2.18.

Exxon Mobil Corporation ((XOM)) rose 54 cents to $82.91 after the oil and gas explorer said it is in talks to buy a refining-petrochemical complex in Singapore-based Jurong Aromatics Corporation Pte Ltd to increase its fuel and chemical production in the Asia region.

Separately, the oil and gas explorer and Qatar Petroleum today signed a license agreement to explore oil and gas off the coast of Cyprus and expect to start drilling in the next year.

“Cyprus will receive €103.5 million or $110.5 million from the contracts,” the Cyprus energy minister George Lakkotrypis said.

Greenbrier Companies Inc ((GBX)) surged 11.8% or $5.05 to $48 after the railroad freight car equipment maker said in the second-quarter ending in February plunged 15.4% from a year ago to $566.3 million.

Net income in the quarter declined 23.2% to $34.5 million or $1.09 per diluted share from $44.9 million or $1.41 in the same quarter last year.

In fiscal 2017, Greenbrier forecasted revenues between $2 billion and $2.4 billion and diluted earnings per share in the range of $3.25 to $3.75 and deliveries in the range of 14,000 units to 16,000 units.

Separately, The Greenbrier Companies, Inc and Japan-based Mitsubishi UFJ Lease & Finance sign agreement for more than $1 billion for railcar business in the North America.

MUL intends to grow its business from 5,000 railcars to 25,000 railcars in the next four years, including multi-year purchase commitment for 6,000 new railcars through 2020 and also agreed to obtain all new railcars exclusively from Greenbrier through 2023.

Monsanto Company ((MON)) gained 1.1% or $1.21 to $115.93 after the agricultural products maker reported total net sales in the second-quarter ending in February soared 13.3% from a year ago to $5.1 billion.

Net income in the quarter surged 27.3% to $1.4 billion or $3.09 per diluted share from $1.1 billion or $2.41 in the same quarter last year.

The agricultural products maker said higher sales in the quarter mainly on the corn seeds and traits sales increase of 8% and soybean seeds and traits sales advanced 10.2%.

Monsanto said it remains confident the deal with Germany-based Bayer AG will clear all regulatory approvals and it’s also on track to close by the end of this year.

Panera Bread Co ((PNRA)) soared 13.8% or $37.80 to $311.80 after the bakery chain agreed to be acquired by Krispy Kreme Doughnuts owner JAB Holding Co for about $7.5 billion.

JAB offered $315 in cash per share, representing a 20.3% premium to the closing price of March 31.

“We are pleased to join with JAB, a private investor with an equally long-term perspective, as well as a deep commitment to our strategic plan,” Panera founder Ron Shaich said.

The transaction is expected to close in the third-quarter of this year.

Staples, Inc ((SPLS)) jumped 3.6% or 34 cents to $9.85 after the office-supply retailer is reportedly in talks with private equity firms after it failed to merge with the rival Office Depot Inc on antitrust grounds.

Walgreens Boots Alliance Inc ((WBA)) slipped 1.3% or $1.10 to $81.43 after the drug retailer reported revenues in the second-quarter ending in February fell 2.4% from a year ago to $29.4 billion.

Net income in the quarter jumped 14% to $1.1 billion or 98 cents per diluted share from $930 million or 85 cents in the same quarter last year.

Walgreens said operating income in the quarter declined 20.5% to $1.5 billion from the same quarter a year ago.

The drugs retailer forecasted diluted earnings per share in fiscal 2017 in the range of $4.90 to $5.08.

As previously disclosed on January 30, Walgreens no longer expects any material accretion from the Rite Aid acquisition this year.