PayPal Buys Swiss-based iZettle, Deere to Lift Prices and Posted Mixed Results

Mukesh Buch
18 May, 2018
New York City

Campbell tumbled on weak outlook. Deere & Co profit jumped. Flowers Foods net declined but reaffirmed fiscal outlook. PayPal agreed to buy Sweden-based rival iZettle for $2.2 billion.

[R]12:30 PM New York City, New York – Campbell tumbled on weak outlook. Deere & Co profit jumped. Flowers Foods net declined but reaffirmed fiscal outlook. PayPal agreed to buy Sweden-based rival iZettle for $2.2 billion.[/R]

Tollbooth Index slumped 88.47 or 0.6% to 15,139.21 but for the year-to-date jumped 9.9%.

Earnings Review

Campbell Soup Company ((CPB)) plunged 10.8% or $4.25 to $34.97 after the branded convenience food products and soup provider reported revenues in the third-quarter ending on April 29 soared 15% from a year ago to $2.1 billion.

Net in the quarter swung to a loss of $475 million or $1.31 per diluted share from $298 million or 58 cents in the same quarter last year.

The convenience food provider said higher sales were driven by the recent acquisitions of Snyder’s-Lance and Pacific Foods.

Campbell Soup lowered fiscal 2019 earnings per share growth forecast to between 1% and 3% and sales to grow 10% to 11% from the earlier estimate of flat to 1% growth.

Deere & Company ((DE)) soared 4.7% or $6.84 to $153.65 after the agricultural, turf and construction machinery maker reported total net sales in the second-quarter ending on April 29 surged 29% from a year ago to $10.7 billion.

Net income in the quarter jumped 48.4% to $1.2 billion or $3.67 per diluted share from $808.5 million or $2.50 in the same quarter last year.

Flowers Foods Inc ((FLO)) slipped 1.5% or 29 cents to $19.27 after the bakery products maker said sales in the first-quarter ending on April 21 rose 1.6% from a year ago to $1.2 billion.

Net income in the quarter declined 15.2% to $51.2 million or 24 cents per diluted share from $60.4 million or 29 cents in the same quarter last year.

Flowers Foods reaffirmed fiscal 2018 revenue growth forecast to increase in the range of $3.921 billion to $3.982 billion, representing growth between zero and 1.6%.

Jack in the Box Inc ((JACK)) declined 4.4% or $3.68 to $80.11 after the quick-service restaurants operator reported revenues in the second-quarter ending on April 15 plummeted 36.8% from a year ago to $113.9 million.

Net income in the quarter soared 43.8% to $47.6 million or $1.62 per diluted share from $33.1 million or $1.06 in the same quarter last year.

The quick-service restaurants operator forecasted fiscal 2018 same store sales growth between flat and increase of 1%.

PayPal Holdings Inc ((PYPL)) rose 2.9% or $2.35 to $81.54 after the electronic payment solutions provider today agreed to acquire Sweden-based rival iZettle AB for about $2.2 billion.

In fiscal 2018, iZettle forecasted gross revenues of about $165 million.

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