Schwab Rides Market Wave, Nordstrom Family Suspends LBO Exploration

Mukesh Buch
16 Oct, 2017
New York City

Charles Schwab net and revenues surged on a new retail brokerage accounts. Capstar Financial net more than doubled. McClatchy said net loss widened on weak revenues. Nordstrom family suspends its plan to go private. Ruby Tuesday agreed to be acquired by NRD Capital.

[R]10:50 AM New York – Charles Schwab net and revenues surged on a surge in new retail brokerage accounts. Capstar Financial net more than doubled. McClatchy said net loss widened on weak revenues. Nordstrom family suspends its plan to go private. Ruby Tuesday agreed to be acquired by NRD Capital.[/R]

Tollbooth Index slipped 32.62 or 0.3% to 12,828.36.

Earnings Review

Charles Schwab Corp ((SCHW)) fell 27 cents to $44.46 after the investment, banking and brokerage services provider reported revenues in the third-quarter ending in September soared 13% from a year ago to $2.2 billion.

Net income in the quarter surged 22.3% to $575 million or 42 cents per diluted share from $470 million or 35 cents in the same quarter last year.

The brokerage services provider said new retail brokerage accounts in the quarter soared 29% to 216,000 and total accounts jumped 4% to 7.3 million from a year ago period.

Capstar Financial Holdings Inc ((CSTR)) jumped 4.6% or 89 cents to $20.31 after the banking services provider said revenues in the third-quarter ending in September advanced 13.4% from a year ago to $13.5 million.

Net income in the quarter more than doubled to $4.4 million or 35 cents per diluted share from $2.1 million or 20 cents in the same quarter last year.

McClatchy Co ((MNI)) declined 6.2% or 48 cents to $7.25 after the news and advertising service provider stated total revenues in the third-quarter ending on September 24 slumped 9.4% from a year ago to $212.6 million.

Net loss in the quarter widened to $238.9 million or $31.28 per diluted share from $9.8 million or $1.30 in the same quarter last year.

McClatchy said net loss including total non-cash after-tax impairment charges was $337.8 million.

Nordstrom, Inc ((JWN)) plunged 6.1% or $2.60 to $40.04 after the founder family of specialty retailer said it had suspended active exploration of taking the company private till the end of holiday season.

Ruby Tuesday, Inc ((RT)) surged 18.8% or 38 cents to $2.37 after the restaurant operator agreed to be acquired by private equity firm and funds managed by NRD Capital for $2.40 per share in cash or about $335 million.

The transaction is expected to complete during the first-quarter of 2018.

Separately, today the restaurants operator said total revenues in the first-quarter ending on September 5 declined 15.3% from a year ago to $217.3 million.

Same-restaurant sales in the quarter dropped 5.8%.

Net loss in the quarter narrowed to $9.8 million or 16 cents per diluted share from $39.7 million or 66 cents in the same quarter last year.

As of September 5, Ruby Tuesday had cash and cash equivalents of $48.1 million.

The Weinstein Company, the film studio operator said that it had reached an agreement with Colony Capital for an immediate “capital infusion” and at a later date will negotiate the sale of some or all of the company assets.