UnitedHealth to Buy DaVita

Mukesh Buch
06 Dec, 2017
New York City

American Eagle forecasted strong holiday earnings. HD Supply reaffirmed fourth quarter outlook. Home Depot launches new $15 billion buyback plan. RH earnings results meet the expectations. UnitedHealth plans to buy DaVita urgent care unit.

[R]11:45 AM New York – American Eagle forecasted strong holiday earnings. HD Supply reaffirmed fourth quarter outlook. Home Depot launches new $15 billion buyback plan. RH earnings results meet the expectations. UnitedHealth plans to buy DaVita urgent care unit.[/R]

Tollbooth Index increased 29.69 or 0.2% to 13,622.94.

Earnings Review

American Eagle Outfitters ((AEO)) rose 12 cents to $16.23 after the multi-brand specialty retailer reported total net revenues in the fourth-quarter ending on October 28 increased 2% from a year ago to $960 million.

Comparable store sales in the quarter advanced 3%.

Net income in the quarter plunged 16% to $63.7 million or 36 cents per diluted share from $75.8 million or 41 cents in the same quarter last year.

The retailer reaffirmed fiscal fourth-quarter comparable store sales to increase in the mid-single digits and diluted earnings per share in the range of 42 cents to 44 cents.

HD Supply Holdings Inc ((HDS)) edged up 1 cent to $38.81 after the diversified industrial products distributor said revenues in the third-quarter ending on October 29 jumped 7.5% from a year ago to $1.4 billion.

Net income in the quarter surged to $452 million or $2.42 per diluted share from $60 million or 30 cents in the same quarter last year.

HD Supply reaffirmed fiscal fourth quarter net sales forecast in the range of $1.14 billion and $1.18 billion and operating profit in the range of $135 million and $147 million and diluted earnings per share between 41 cents and 47 cents.

Home Depot Inc ((HD)) dropped 1.7% or $3.13 to $179.72 after the home improvement forecasted annual sales to range between $114.7 billion and $119.8 billion by the year ending January 2021.

The retailer said it will complete buybacks worth about $8 billion by the end of fiscal fourth quarter ending in January 2018 and also announces new $15 billion share buyback program to replace its prior authorization that was set in February.

KLX Inc ((KLXI)) surged 9.8% or $5.30 to $59.21 after the aerospace fasteners and consumables distributor and service provider reported revenues in the third-quarter ending in October jumped 17.4% from a year ago to $456.7 million.

Net income in the quarter soared 30.3% to $25.8 million or 51 cents per diluted share from $19.8 million or 38 cents in the same quarter last year.

KLX said it secured new contract worth about $125 million for F-35 Joint Strike Fighter, Pratt & Whitney GTF engine and Bombardier C-Series.

The distributor lifted fiscal 2017 diluted earnings per share forecast by 10 cents to $3.10 per share.

RH, formerly Restoration Hardware Holdings, Inc ((RH)) slumped 2.5% or $2.56 to $101.31 after the home furnishings retailer said revenues in the third-quarter ending on October 28 advanced 8% from a year ago to $592.5 million.

Net income in the quarter soared to $13.2 million or 56 cents per diluted share from $2.5 million or 6 cents in the same quarter last year.

RH estimated fiscal 2018 net revenues in the range of $2.58 billion to $2.62 billion, a growth of 6% to 7% and net income in the range of $125 million to $145 million.

UnitedHealth Group Inc ((UNH)) increased $1.28 to $221.35 after the health insurer said it will acquire DaVita Inc’s primary and urgent care services for $4.9 billion, however, its kidney dialysis unit not included in the agreement.

DaVita said proceeds will be used for share buyback and reduce debt and the company also plans to focus on the U.S. and international kidney care business.

Wal-Mart Stores Inc ((WMT)) slid 12 cents to $97.70 and the supermarket stores operator said it is change the legal name to Walmart, dropping the dash and the word ""Stores"" from its corporate name.