Finish Line Agrees to JD Sports Offer, Paychex Offers Upbeat Outlook

Mukesh Buch
26 Mar, 2018
New York City

Finish Line surged after the retailer agreed to the offer from the U.K.-based retailer. Kala Pharmaceuticals net loss widened. Paychex net surged 29%. Remington Outdoor filed for Chapter 11 protection. Victory Capital net swung to profit.

[R]11:55 AM New York City, New York – Finish Line surged after the retailer agreed to the offer from the U.K.-based retailer. Kala Pharmaceuticals net loss widened. Paychex net surged 29%. Remington Outdoor filed for Chapter 11 protection. Victory Capital net swung to profit.[/R]

The Finish Line Inc ((FINL)) surged 29.9% or $3.15 to $13.70 after the specialty retailer reported revenues in the fourth-quarter ending on March 3 increased 0.7% from a year ago to $561.3 million.

Comparable sales in the quarter declined 7.9%.

The specialty retailer forecasted fourth quarter diluted earnings per share in the range of 39 cents to 40 cents.

Separately today, the retailer agreed to be acquired by the U.K.-based rival JD Sports Fashion Plc for about $13.50 per share in cash that deal valued of about $558 million.

The transaction is expected to close after June 2018.

Kala Pharmaceuticals Inc ((KALA)) declined 3.3% or 57 cents to $16.52 after the therapeutics drugs maker said net loss in the fourth-quarter ending in December widened from a year ago to $11.3 million or 46 cents per diluted share from $8.4 million or $7.11 in the same quarter last year.

Paychex Inc ((PAYX)) fell 34 cents to $61.39 after the payroll outsourcing services provider reported revenues in the third-quarter ending in February jumped 9% from a year ago to $866.5 million.

Net income in the quarter surged 29% to $260.4 million or 72 cents per diluted share from $202.5 million or 56 cents in the same quarter last year.

In fiscal 2018, payroll segment service revenue forecasted to increase approx 2% and total revenue to grow 7% net income to increase 13% and diluted earnings per share to jump between 13% and 14%.

Remington Outdoor Co Inc, the firearms maker filed for Chapter 11 bankruptcy protections after months of financial problems and heavy debt load.

The gun maker’s assets and liabilities are in the range of $500 million to $1 billion.

Remington plans to wrap up its bankruptcy as soon as by May 3.

Victory Capital Holdings Inc ((VCTR)) gained 1.8% or 22 cents to $12.14 after the investment manager stated revenues in the fourth-quarter ending in December soared 8% from a year ago to $105.6 million.

Net in the quarter swung to profit $11.2 million or 19 cents per diluted share from a loss of $2.7 million or 5 cents in the same quarter last year.