Thermo in $7.2 B Deal with Patheon, Target Struggles with Sales Growth

Mukesh Buch
17 May, 2017
New York City

American Eagle plunged on weaker-than-expected profit and lower fiscal forecast. Jack in the Box net soared. Thermo Fisher agreed to acquire the Netherlands-based Patheon for $7.2 billion. Target net soared 8%. Urban Outfitters net declined 60%.

[R]4:10 PM New York – American Eagle plunged on weaker-than-expected profit and lower fiscal forecast. Jack in the Box net soared. Thermo Fisher agreed to acquire the Netherlands-based Patheon for $7.2 billion. Target net soared 8%. Urban Outfitters net declined 60%.[/R]

Tollbooth Index declined 139.78 or 1.2% to 11,966.56.

Earnings Review

American Eagle Outfitters ((AEO)) plunged 9.9% or $1.28 to $11.68 after the specialty retailer reported net revenues in the first-quarter ending in April increased 2% from a year ago to $762 million.

Comparable store sales in the quarter rose 2%.

Net income in the quarter tumbled 37.8% to $25.2 million or 14 cents per diluted share from $40.5 million or 76 cents in the same quarter last year.

The retailer forecasted second-quarter comparable store sales in the range of flat to a low single digit decline and diluted earnings per share between 15 cents and 17 cents.

Citi Trends, Inc ((CTRN)) rose 14 cents to $18.01 after the urban fashion apparel and accessories retailer stated total sales in the first-quarter ending in April advanced 3.2% from a year ago to $200 million.

Comparable store sales in the quarter increased 1%.

Net income in the quarter rose 1.7% to $8.89 million from $8.74 million and diluted earnings per share were flat at 60 cents compared to the same period a year ago.

Jack in the Box Inc ((JACK)) jumped 4.2% or $4.27 to $106.16 after the fast food restaurant chain operator said total revenues in the second-quarter ending on April 16 increased 2.3% from a year ago to $369.4 million.

System same-store sales decreased 0.8% and Qdoba same-store sales decreased 3.2%.

Net income in the quarter soared 15.3% to $33.1 million or $1.06 per diluted share from $26.7 million or 84 cents in the same quarter last year.

Thermo Fisher Scientific Inc ((TMO)) fell 58 cents to $171.69 after the analytical instruments maker agreed to acquire the Netherlands-based molecular microscope diagnostic system developer Patheon N.V for $35 per share or about $7.2 billion in cash, including approx $2 billion of net debt.

The transaction is expected to complete by the end of this year.

Target Corporation ((TGT)) jumped 2.1% or $1.14 to $55.64 after the discount stores operator reported net sales in the first-quarter ending in April fell 1.1% from a year ago to $16 billion.

Comparable store sales in the quarter decreased 1.3%.

Net income in the quarter soared 7.7% to $681 million or $1.23 per diluted share from $632 million or $1.05 in the same quarter last year.

Urban Outfitters, Inc ((URBN)) slumped 3.4% or 70 cents to $19.75 after the lifestyle specialty retailer said total net sales in the first-quarter ending in April were flat from a year ago to $761.2 million.

Comparable store sales in the quarter dropped 3.1%, comparable store sales in Free People segment increased 1.5% but at Urban Outfitters stores comparable sales fell 3.1% and fell 4.4% Anthropologie Group.

Net income in the quarter declined 59.8% to $11.9 million or 10 cents per diluted share from $29.6 million or 25 cents in the same quarter last year.