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Market Update

Assurant to Exit from Health Insurance, Johnson Controls Jumps


Author: Mukesh Buch
ticker.com
Last Update: 12:59 PM ET June 10 2015

12:35 PM New York Ė Assurant will exit from health insurance business. Ferrellgas net plummeted 21% on 26% decline in revenues. Johnson Controls explore automotive business unit sale. Mattress Firm net plunged 29%. Sigma Designs net loss narrowed. SAIC net slipped 3%.

Tollbooth Index climbed 1.1% or 118.12 to 10,743.34.

Earnings Review

Assurant, Inc (AIZ) gained 1.3% or 86 cents to $66.66 after the insurance services provider said it will sell some small-group businesses to National General Holdings Corp and plans to exit from health insurance market to support housing and lifestyle specialty protection products and services.

Assurant said cost related to exit would be in the range of $175 million to $250 million and total future incremental cash expenditures will be between $95 million and $110 million.

The insurer estimated to complete its exit of the health insurance market by the end of 2016.

Ferrellgas Partners, L.P (FGP) rose 11 cents to $22.91 after the propane gas provider reported total revenues in the third-quarter ending in April declined 26.2% to $532.5 million from a year ago period.

Net income in the quarter plummeted 21% to $35.5 million or 43 cents per diluted share compared to $44.9 million or 57 cents from the same quarter last year.

Johnson Controls Inc (JCI) climbed 4.9% or $2.56 to $54.12 after the diversified technology company announced today that it is exploring strategic options for the separation of its automotive business.

Mattress Firm Holding Corp (MFRM) declined 4.6% or $2.83 after the mattresses retailer said revenues in the first-quarter ending in April soared 68.7% to $562.6 million from a year ago period.

Net income in the quarter plunged 28.6% to $5.5 million or 15 cents per diluted share compared to $7.7 million or 22 cents from the same quarter last year.

The company lifted revenues forecast for the year in the range of $2.49 billion to $2.54 billion from the earlier estimated range of $2.47 billion to $2.52 billion and the adjusted earnings range between $2.50 and $2.70 per share.

Quiksilver, Inc (ZQK) tumbled 10.2% or 0.087 cents to 76.1 cents after the menís clothing company stated revenues in the second-quarter ending in April declined 16.1% to $333.05 million from a year ago period.

Net loss in the quarter narrowed to $37.6 million compared to $53.1 million and diluted earnings per share were flat at 22 cents from the same quarter last year.

Sigma Designs Inc (SIGM) soared 7.5% or 67 cents to $9.61 after the semiconductor solutions provider said net revenues in the first-quarter ending on May 2 surged 51.6% to $55.9 million from a year ago period.

Net loss in the quarter narrowed to $0.4 million or 1 cent per diluted share compared to $9.9 million or 29 cents from the same quarter last year.

Science Applications International Corp (SAIC) rose 39 cents to $50.85 after the engineering and integration services provider said total revenues in the first-quarter ending April jumped 3.4% to $1.01 billion from a year ago period.

Net income in the quarter slipped 2.9% to $33 million compared to $34 million and diluted earnings per share were flat at 69 cents from the same quarter last year.

TD Ameritrade Holding Corporation (AMTD) gained 1.3% or 50 cents to $38.90 after the online brokerage company reported monthly activities for May averaged 427,000 client-trades per day, an increase of 11% from a year ago month but dropped 7% from April.

The broker said as of May total client assets jumped 12% to $710.8 billion compared to a year ago month and rose 1% from April and fee-based balances surged 17% to $161.8 billion from year ago month and gained 1% from April.

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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