Centene in $3.4 B Deal with Fidelis Care, Seadrill Files Reorganization Plan

Mukesh Buch
13 Sep, 2017
New York City

A-Mark Precious Metals net soared but revenues declined. Cracker Barrel sales dropped but beat estimates. Centene agreed to buy Fidelis Care for $3.75 billion. Nordstrom family is reportedly in talks to take the retailer private. Seadrill filed for Chapter 11 bankruptcy.

[R]11:45 PM New York – A-Mark Precious Metals net soared but revenues declined. Cracker Barrel sales dropped but beat estimates. Centene agreed to buy Fidelis Care for $3.75 billion. Nordstrom family is reportedly in talks to take the retailer private. Seadrill filed for Chapter 11 bankruptcy.[/R]

Tollbooth Index slipped 26.49 or 0.2% to 12,537.76.

Earnings Review

A-Mark Precious Metals Inc ((AMRK)) tumbled 11.6% or $2.18 to $16.64 after the precious metal trader reported revenues in the fourth-quarter ending in June plunged 24% from a year ago to $1.3 billion.

Net income in the quarter soared 14% to $1.2 million or 17 cents per diluted share from $1.1 million or 15 cents in the same quarter last year.

In the quarter gold sales declined 59% to 290,000 ounces from 711,000 ounces in a year ago period and slumped 50% 579,000 ounces from the third quarter.

Sales in silver business plummeted 45% to 14.1 million ounces from 25.8 million ounces in a year ago period and dropped 32% to 20.9 million ounces from the third quarter.

Cracker Barrel Old Country Store, Inc ((CBRL)) jumped 2.2% or $3.30 to $151.72 after the restaurants and bars operator reported revenues in the fourth-quarter ending on July 28fell 0.3% from a year ago to $743.2 million.

Comparable store restaurant sales in the quarter decreased 0.8% and average menu price increased 1.4%. Comparable store retail sales slumped 4.4%.

Net income in the quarter jumped 5.7% to $53.9 million or $2.23 per diluted share from $51 million or $2.12 in the same quarter last year.

The restaurants operator forecasted fiscal 2018 total revenue of about $3.1 billion and comparable store restaurant sales in the range of 2.5% to 3.5% and estimated diluted earnings per share between $1.85 and $1.95.

The restaurant operator plans to open eight or nine new Cracker Barrel stores and three or four new Holler & Dash stores

Centene Corp ((CNC)) jumped 6.3% or $5.67 to $96.49 after the healthcare services provider agreed to acquire New York-based privately held nonprofit insurer Fidelis Care for $3.75 billion.

The healthcare services provider estimated fiscal 2018 pro forma total revenue of more than $60 billion.

Nordstrom Inc ((JWN)) jumped 5.3% or $2.39 to $47.44 on reports that the specialty retailer’s family members are in talk with private equity firm Leonard Green & Partners and take the retailer private.

Radiant Logistics Inc ((RLGT)) declined 5.7% or 31 cents to $5.14 after the third-party logistics services provider said revenues in the fourth-quarter ending in June jumped 10.6% from a year ago to $201.8 million.

Net loss in the quarter widened to $1 million or 2 cents per diluted share from $0.6 million or 1 cent in the same quarter last year.

Seadrill Ltd ((SDRL)) soared 7.5% or 0.016 cents to 0.241 cents after the Bermuda-based offshore drilling services provider agreed to a major restructuring plan with its senior lenders and filed for Chapter 11 bankruptcy protection in a Texas court.

“With our improved capital structure, we will be in a strong position to capitalize when the market recovers,” said chief executive officer Anton Dibowitz.