Moneygram Accepts Higher Ant Financial Offer, HCA Lowers Outlook

Mukesh Buch
17 Apr, 2017
New York City

HCA Holdings slumped after weak earnings forecast. J B Hunt net rose 3% but revenues jumped 7%. M&T Bank net soared 17%. Moneygram board accepted revised higher cash offer of $18 a share from China-based Ant Financial. PacWest Bancorp net plunged 13%.

[R]2:10 PM New York – HCA Holdings slumped after weak earnings forecast. J B Hunt net rose 3% but revenues jumped 7%. M&T Bank net soared 17%. Moneygram board accepted revised higher cash offer of $18 a share from China-based Ant Financial. PacWest Bancorp net plunged 13%.[/R]

Tollbooth Index advanced 69.98 or 0.6% to 11,567.93.

Earnings Review

HCA Holdings Inc ((HCA)) slumped 3.1% or $2.67 to $85.05 after the healthcare services provider forecasted revenues in the first-quarter ending in March of about $10.6 billion from $10.3 billion.

Net income in the quarter is estimated to decline 5% to $659 million or $1.74 compared to $694 million, or $1.69 per diluted share in the same period a year ago.

J B Hunt Transport Services Inc ((JBHT)) gained 72 cents to $89.86 after the surface logistics services provider reported total revenues in the first-quarter ending in March jumped 6.5% from a year ago to $1.6 billion.

Net income in the quarter rose 2.6% to $102.7 million or 92 cents per diluted share from $100.1 million or 88 cents in the same quarter last year.

M&T Bank Corporation ((MTB)) increased 2.4% or $3.53 to $151.46 after the retail and commercial banking services provider stated interest income in the first-quarter ending in March gained 2.8% from a year ago to $1 billion.

Net income in the quarter soared 16.9% to $348.9 million or $2.12 per diluted share from $298.5 million or $1.73 in the same quarter last year.

Moneygram International Inc ((MGI)) jumped 7.4% or $1.22 to $17.72 after the China-based Ant Financial Services Group, the affiliate of Alibaba Group raised offer for money transfer services provider to about $18 per share in cash from $13.25, the transaction is valued at about $1.2 billion.

The deal is approved by the board of MoneyGram, Ant Financial said.

Last month, Euronet Worldwide Inc offered $15.20 per share.

""Throughout this process, board of directors remained laser-focused on maximizing value for MoneyGram stockholders, while taking into account price, the ability to complete a transaction and other important considerations,"" the executive chairman of Moneygram Pamela Patsley said.

""MoneyGram... will add valuable cross-border remittance capabilities to the Ant Financial ecosystem, serving our more than 630 million users globally,"" said president of Ant Financial Doug Feagin.

The transaction is expected to close before the end of this year.

PacWest Bancorp ((PACW)) declined 4.2% or $2.12 to $47.95 after the small and middle-market banking services provider said total interest income in the first-quarter ending in March advanced 4.5% from a year ago to $247.4 million.

Net income in the quarter plunged 13% to $78.7 million or 65 cents per diluted share from $90.5 million or 74 cents in the same quarter last year.