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Market Update

Adobe, La-Z-Boy Net Soar; FedEx Net Swings to Loss


Author: Mukesh Buch
ticker.com
Last Update: 11:24 AM ET June 17 2015

11:20 AM New York Allergan agreed to acquire Kythera Biopha for $2.1 billion. Actuant net tumbled 25% on 15% decline in revenues. Adobe net soared 67%. Bob Evans netplunged 57%. FedEx net swung to a loss. La-Z-Boy net soared 66%.

Tollbooth Index gained 0.3% or 34.18 to 10,750.44.

Earnings Review

Allergan Plc increased $1.39 to $299.41 after the Ireland-based botox maker agreed to acquire Kythera Biopharmaceuticals Inc for about $2.1 billion in cash and stock.

Under the terms, Allergan will pay $75 per share, representing a 23.5% premium to closing price of $60.72 per share of June 16.

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

Shares of Kythera Biopharmaceuticals Inc surged 22.3% to $74.29.

Actuant Corporation (ATU) declined 3.7% or 89 cents to $22.95 after the industrial products maker said total sales in the third-quarter ending in May plunged 15% to $320.10 million from a year ago period.

Net income in the quarter tumbled 24.9% to $38 million or 63 cents per diluted share compared to $50.6 million or 70 cents from the same quarter last year.

The company forecasted revenues for the fourth-quarter between $290 million and $300 million and diluted earnings per share in a range of 26 cents to 31 cents.

For the year, the company lowered its revenue forecast in the range of $1.24 billion to $1.25 billion from earlier guidance between $1.25 billion and $1.27 billion and diluted earnings per share in a range of $1.55 to $1.60.

Adobe Systems Inc (ADBE) slipped 1.5% or $1.19 to $78.75 after the software company reported total revenues in the second-quarter ending on May 29 climbed 8.4% to $1.17 billion from a year ago period.

Net income in the quarter soared 66.7% to $147.5 million or 29 cents per diluted share compared to $88.5 million or 17 cents from the same quarter last year.

Bob Evans Farms Inc (BOBE) jumped 2.9% or $1.41 to $48.92 after the full-service restaurant operator said net sales in the fourth-quarter ending on April 24 increased 1.8% to $332.4 million from a year ago period.

Same store sales in the quarter jumped 2.1%.

Net income in the quarter plunged 56.9% to $5.6 million or 24 cents per diluted share compared to $13 million or 40 cents from the same quarter last year.

FedEx Corporation (FDX) dropped 2.8% or $5.14 to $176.99 after the air freight and logistics company reported revenues in the fourth-quarter ending in May jumped 2.5% to $12.1 billion from a year ago period.

Net in the quarter swung to a loss of $895 million or $3.16 per diluted share compared to profit of $780 million or $2.62 from the same quarter last year.

The company said revenues in FedEx express segment dropped 4% to $6.70 billion while revenues in FedEx ground business climbed 19% to $3.57 billion from a year ago period.

Revenues for FedEx freight segment rose 1% to $1.6 billion and services revenues increased 1% to $407 million compared to same period a year ago.

Keysight Technologies Inc (KEYS) gained 21 cents to $32.83 after the electronic measurements maker agreed to acquire the U.K.-based handset testing device provider Anite Plc for about $606 million or 388 million.

Transaction expected to close by the end of October.

La-Z-Boy Inc (LZB) declined 4.2% or $1.15 to $26.01 after the furniture products maker said sales in the fourth-quarter ending on April 25 climbed 6.2% to $374.9 million from a year ago period.

Net income in the quarter soared 65.6% to $20.2 million or 39 cents per diluted share compared to $12.2 million or 23 cents from the same quarter last year.

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