Axalta Rejected Nippon Deal, Costco November Sales Soar

Mukesh Buch
01 Dec, 2017
New York City

Axalta Coating rejected $9.1 billion takeover offer from Nippon Paint. Big Lots net soared after store makeover. CVS is close to buying Aetna. Costco November sales surged 13%. Genesco lowered fiscal 2018 outlook. Michaels reported stronger-than-expected results.

[R]11:45 AM New York – Axalta Coating rejected $9.1 billion takeover offer from Nippon Paint. Big Lots net soared after store makeover. CVS is close to buying Aetna. Costco November sales surged 13%. Genesco lowered fiscal 2018 outlook. Michaels reported stronger-than-expected results.[/R]

Tollbooth Index decreased 18.68 to 13,627.71.

Earnings Review

American Woodmark Corporation ((AMWD)) gained 1.9% or $1.90 to $101.50 after the kitchen cabinets maker said sales in the second-quarter ending in October increased 4% from a year ago to $274.8 million.

Net income in the quarter surged 12.5% to $19.8 million or $1.21 per diluted share from $17.6 million or $1.07 in the same quarter last year.

Separately, today the kitchen cabinets maker agreed to acquire kitchen and bath cabinetry and home storage products maker RSI Home Products, Inc for about $1.8 billion.

The transaction is expected to close in January 31, 2018.

Axalta Coating Systems Ltd ((AXTA)) increased 1.7% or 54 cents to $32.20 and the paint and coatings maker rejected $9.1 billion takeover offer from Nippon Paint Holdings.

Big Lots, Inc ((BIG)) declined 3.1% or $1.84 to $57.26 after the deep discount retailer reported net sales in the third-quarter ending on October 28 rose 0.5% from a year ago to $1.1 billion.

Comparable store sales in the quarter increased 1%.

Net income in the quarter soared to $4.4 million or 10 cents per diluted share from $1.4 million or 3 cents in the same quarter last year.

CVS Health Corp ((CVS)) fell 1.1% or 85 cents to $75.75 after the Wall Street Journal reported that pharmacy care services provider is close to buying health insurer Aetna Inc for as much as $205 per share or more than $66 billion.

Costco Wholesale Corporation ((COST)) slipped $1.54 to $182.88 after the discount stores operator reported net sales in the four-week ending on November 26 surged 13.2% to $11.3 billion and comparable sales advanced 10.8%.

The discount stores operator said online sales in the month jumped 39%.

In the first quarter of fiscal year 2018 ending on November 26 net sales soared 13.3% to $31.13 billion and comparable sales in the quarter jumped 10.5% from a year ago period and online sales in the quarter surged 43.6%.

Genesco Inc ((GCO)) tumbled 18.7% or $5.80 to $25.30 after the footwear, apparel and accessories retailer and wholesaler said net sales in the third-quarter ending on October 28 rose 1% from a year ago to $717 million.

Comparable store sales in the quarter increased 1%, with a 4% increase in each of Journeys Group and Schuh Group while comparable store sales in the Lids Sports Group declined 6% and in Johnston & Murphy Group sales decreased 1%.

Net in the quarter swung to a loss of $164.8 million or $8.56 per diluted share from $25.9 million profit or $1.30 per share in the same quarter last year.

The retailer recognized impairment of goodwill in the Lids Sports Group and recorded a non-cash pre-tax impairment charge of $182.2 million, or $8.13 per diluted share after-tax.

Michaels Companies Inc ((MIK)) rose 1.5% or 32 cents to $21.92 after the arts and crafts specialty retailer said total net sales in the third-quarter ending on October 28 grew 1.1% from a year ago to $1.2 billion.

Comparable store sales in the quarter rose 1%.

Net income in the quarter jumped 4.3% to $79.8 million or 44 cents per diluted share from $76.5 million or 37 cents in the same quarter last year.

Fiscal 2017 total net sales are estimated to increase in the range of 2.9% to 3.2%, comparable store sales are expected to increase between 0.6% and 0.9% and diluted earnings per share in the range of $2.13 to $2.16.

Titan Machinery Inc ((TITN)) surged 11.7% or $2.22 to $21.22 after the agricultural and construction equipment provider said revenues in the third-quarter ending in October fell 0.6% from a year ago to $330.3 million.

Net income in the quarter surged to $2.3 million or 11 cents per diluted share from $0.3 million or 1 cent in the same quarter last year.