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Market Update

AMD, Schulman Plunge on Lower Outlook

Author: Mukesh Buch
Last Update: 12:40 PM ET July 07 2015

12:30 PM New York – Advanced Micro Devices tumbled on weak revenues outlook. Schulman net swung to a loss and lowered earnings forecast. Euronet agreed to acquire XE. Horizon Pharma propose to acquire Depomed for $3 billion.

Tollbooth Index fell 0.9% or 100.54 to 10,555.96.

Earnings Review

Advanced Micro Devices, Inc (AMD) tumbled 17.5% or 43 cents to $2.04 after the microprocessors maker said revenue for the second-quarter ending on June 27 to decline 8% from the previous guidance of 3% decline on ""weaker than expected consumer PC demand.”

AMD added non-GAAP gross margin to be about 28% compared to earlier forecast of about 32%.

A Schulman Inc (SHLM) plunged 11.4% or $4.82 to $37.34 after the plastic compounds maker said net sales in the third-quarter ending in May declined 13.1% to $560.9 million from a year ago period.

Net in the quarter swung to a loss of $9.9 million or 34 cents per diluted share compared to profit of $19.1 million or 65 cents from the same quarter last year.

The company lowered its adjusted earnings per share forecast for the year in the range of $2.37 to $2.42 from the earlier guidance between $2.50 and $2.55.

Euronet Worldwide, Inc (EEFT) fell 17 cents to $62.22 after the electronic payments services provider agreed to acquire a global leader in digital foreign exchange information provider XE, serving 30 million unique visitors a month.

Euronet said it will use approx $60 million from its revolving credit agreement with about 640,000 company’s shares and an undisclosed amount of cash to complete the acquisition.

Horizon Pharma Plc (HZNP) slumped 2.6% or 89 cents to $33.65 after the Ireland-based biopharmaceutical company propose to acquire Depomed, Inc. for $29.25 per share in an all-stock, tax-free exchange valued at about $3 billion, a premium of 42% to the closing price of July 6.

MSC Industrial Direct Co Inc (MSM) soared 5.5% or $3.73 to $71.90 after the industrial machinery reported revenues in the third-quarter ending in May jumped 3.5% to $745.5 million from a year ago period.

Net income in the quarter fell 2.2% to $63.3 million compared to $64.7 million and diluted earnings per share were flat at $1.03 from the same quarter last year.

The company forecasted net sales for the fourth quarter between $735 million and $747 million and diluted earnings per share in the range of 93 cents to 97 cents.

TerraForm Power Inc (TERP) jumped 3.3% or $1.25 to $38.78 after the wind power producer and SunEdison, Inc, renewable energy developer, agreed to acquire net ownership of 930 megawatt of wind power plants from Invenergy Wind LLC.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc