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Market Update

Applied Materials, Autodesk, J.C. Penney, Nordstrom Jump; Darden Drops


Author: Mukesh Buch
ticker.com
Last Update: 11:52 AM ET May 16 2014

11:45 PM New York Abbott agreed to acquire Chile-based CFR Pharma for $2.9 billion. Applied Materials net swung to profit after sales soared 19%. Autodesk net tumbled 49%. Darden agreed to sell its Red Lobster business for $2.1 billion in cash. Nordstrom net fell 3%.

Abbott Laboratories gained 1.4% or 55 cents to $39.79 after the health care products maker agreed to acquire Chile-based CFR Pharmaceuticals for $2.9 billion, plus net debt of about $430 million to expanding its presence in Latin America.

The transaction expected to closes by the end of the third quarter of this year.

Applied Materials, Inc (AMAT) jumped 6.9% or $1.30 to $19.99 after the wafers and chips maker said net sales in the second-quarter ending in soared 19% to $2.35 billion.

Net in the quarter swung to profit $262 million or 21 cents a diluted share compared to a loss of $129 million or 11 cents.

Autodesk, Inc (ADSK) climbed 5.8% or $2.76 to $50.58 after the application software service provider stated revenue in the first-quarter ending in March increased 4% to $592.5 million.

Net income in the quarter tumbled 49.1% to $28.3 million or 12 cents a diluted share compared to $55.6 million or 24 cents.

Darden Restaurants, Inc (DRI) declined 4.3% or $2.20 to $48.49 after the full service restaurant operator agreed to sell its Red Lobster business to private-equity investment firm Golden Gate Capital for $2.1 billion in cash.

The sale is expected to result net cash of about $1.6 billion of which Darden will use to reduce outstanding debt of $1 billion.

The sale is expected to complete in the first quarter of fiscal 2015.

J.C. Penney Company, Inc (JCP) soared 16% or $1.34 to $9.71 after the department stores operator said sales in the first-quarter ending on May 3 increased 6% to $2.80 billion. Comparable store sales in the quarter jumped 6.2%.

Net loss in the quarter widened to $352 million or $1.15 a diluted share compared to $348 million or $1.58.

Nordstrom, Inc (JWN) surged 11% or $6.76 to $68.25 after the specialty retailer reported total revenue in the first-quarter ending on May 3 jumped 6.5% to $2.93 billion. Comparable store sales in the quarter climbed 3.9%.

Net earnings in the quarter fell 3.4% to $140 million or 72 cents a diluted share compared to $145 million or 73 cents.

Stantec Inc (STN) rose 1.2% or 71 cents to $60.99 after the Canada-based professional consulting service provider said total revenue in the first-quarter ending in March jumped 11.8% to $573.9 million.

Net income in the quarter soared 18% to $33.5 million or 71 cents a diluted share compared to $28.4 million or 61 cents.

Verizon Communications Inc (VZ) gained 2.5% or $1.21 to $49.17 after the Federal Communications Commission today approved rules governing its spectrum screen will benefit to marketplace and consumers said Craig Silliman, Verizon senior vice president, public policy.

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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