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Market Update

Adobe to Acquire Fotolia for $800 M; Esterline Plunges


Author: Mukesh Buch
ticker.com
Last Update: 11:51 AM ET December 12 2014

11:50 AM New York – Adobe Systems agreed to acquire privately-held Fotolia for about $800 million in cash and profit jumped 12%.Dominion Diamond net swung to profit. Esterline Technologies net swung to a loss. Nordson profit soared 21% on 14% increase in revenues. Quiksilver net loss narrowed.

Tollbooth Index fell 0.6% or 56.77 to 9,865.91.

Earnings Review

Adobe Systems Inc (ADBE) surged 9.1% or $6.35 to $76.09 after the diversified software developer reported revenues in the fourth-quarter ending on November 28 increased 2.9% to $1.07 billion from a year ago period.

Net income in the quarter jumped 12.2% to $73.3 million or 14 cents a diluted share compared to $65.3 million or 13 cents from a same quarter last year.

Separately, yesterday, the company agreed to acquire privately-held Fotolia, a marketplace for royalty-free photos, images, graphics and HD video for about $800 million in cash.

Denny''s Corporation (DENN) climbed 3.1% or 32 cents to $10.53 after the family-style restaurant operator’s director Robert E. Marks sold 18,900 shares through open market at an average price of $9.78 for a total value of about $184,842.

Dominion Diamond Corp (DDC) jumped 3.4% or 59 cents to $17.89 after the Canada-based rough diamond producer sales in the third-quarter ending in October soared 50.1% to $222.3 million from a year ago period.

Net in the quarter swung to profit $25.5 million or 30 cents a diluted share compared to a loss of $4.8 million or 6 cents from a same quarter last year.

Esterline Technologies Corporation (ESL) plunged 12.5% or $14.70 to $103.01 after the aerospace and defense products maker said sales in the fourth-quarter ending in October jumped 6.7% to $548.1 million from a year ago period.

Net in the quarter swung to a loss of $3.47 million or 11 cents a diluted share compared to profit of $65.9 million or $2.06 from a same quarter last year.

Nordson Corporation (NDSN) fell 29 cents to $76.16 after the testing and inspection equipment maker reported sales in the fourth-quarter ending in October climbed 14% to $468.6 million from a year ago period.

Net income in the quarter soared 20.6% to $72.1 million or $1.13 a diluted share compared to $59.8 million or 92 cents from a same quarter last year.

For the fiscal first-quarter, sales growth is forecasted in the range of 5% to 9% and diluted earnings per share between 60 cents and 70 cents from a year ago period.

Quiksilver, Inc (ZQK) surged 31.8% or 47 cents to $1.95 after the branded apparel, footwear and accessory maker said net revenues in the fourth-quarter ending in October plunged 11% to $401 million from a year ago period.

Net loss in the quarter narrowed to $51.6 million or 29 cents a diluted share compared to $171.1 million or $1.04 from a same quarter last year.

For the fiscal 2015, net revenues are expected in the range of $1.48 billion to $1.55 billion, an increase of 1% to 5% and gross margins are estimated between 49.5% and 51%.

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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