Emerson Abandons $29 B Bid to Buy Rockwell, Thor Beats Estimates

Mukesh Buch
28 Nov, 2017
New York City

Emerson Electric withdraws $29 billion offer to buy Rockwell Automation. Momo profit and revenues surged. Roark Capital agreed to buy Buffalo Wild Wings for $2.4 billion. Thor Industries beats earnings and revenues estimates. Tech Data beats third-quarter results.

[R]11:45 AM New York – Emerson Electric withdraws $29 billion offer to buy Rockwell Automation. Momo profit and revenues surged. Roark Capital agreed to buy Buffalo Wild Wings for $2.4 billion. Thor Industries beats earnings and revenues estimates. Tech Data beats third-quarter results.[/R]

Tollbooth Index advanced 37.46 or 0.3% to 13,528.67.

Earnings Review

Emerson Electric Co ((EMR)) increased 2.3% or $1.43 to $63.31 after the diversified automation maker abandoned its $29 billion offer to acquire Rockwell Automation Inc after the company rebuffed its buyout offer twice to $225 per share.

“We are disappointed that the Rockwell board refused even to discuss the potential combination of our two great companies,” said chief executive officer David Farr.

Momo Inc ((MOMO)) tumbled 16.4% or $5.04 to $25.89 after the China-based mobile social networking platform provider reported revenues in the third-quarter ending in September surged 126% from a year ago to $354.5 million.

Net income in the quarter more than doubled to $79.1 million or 19 cents per diluted share from $39 million or 10 cents in the same quarter last year.

The mobile social networking platform provider said as of September 30, monthly active users soared 22 % to 94.4 million compared to 77.4 million in the same period a year ago.

Momo forecasted fiscal fourth-quarter revenues to jump between 50% and 56% or between $370 million and $385 million.

Roark Capital Group Inc, the Bloomberg reported that the private equity firm and owner of Arby''s restaurant agreed to buy restaurant chain Buffalo Wild Wings Inc for $157 per share in cash or about $2.4 billion.

Buffalo Wild Wings stock in the premarket trading jumped 6.6% to $155.95.

The transaction is expected to close in the first-quarter of fiscal 2018.

Thor Industries, Inc ((THO)) surged 11.5% or $15.68 to $151.94 after the recreational vehicles maker reported revenues in the first-quarter ending in October soared 29.4% from a year ago to $2.2 billion.

Net income in the quarter surged 63.2% to $128.4 million or $2.43 per diluted share from $78.7 million or $1.49 in the same quarter last year.

Tech Data Corp ((TECD)) soared 10.2% or $9.54 to $102.76 after the technology products wholesale distributor said net sales in the third-quarter ending in October surged 41% from a year ago to $9.1 billion.

Net income in the quarter jumped 51% to $76.7 million or 97 cents per diluted share from $50.9 million or $1.03 in the same quarter last year.

Tech Data forecasted fiscal fourth-quarter net sales in the range of $10.25 billion to $10.80 billion and diluted earnings per share in the range of $2.39 to $2.69.

Tuniu Corporation jumped 7.8% or 70 cents to $9.73 after the China-based online leisure and packaged tours operator said net revenues in the third-quarter ending September soared 53.5% to $121.2 million and gross profit in the quarter surged to 73.5% to $66.3 million from a year ago.