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Market Update

Auxilium Buys Endo Intl for $1.7 B, Kindred Healthcare in $1.8 B Deal


Author: Mukesh Buch
ticker.com
Last Update: 12:50 PM ET October 09 2014

12:35 PM New York Alcoa net surged more than five-fold. Auxilium Pharma agreed to be acquired by Endo Intl for $1.7 billion. Gap plunged after chief executive officer Glenn Murphy announced retirement. Impax Lab agreed to buy two privately held drug makers for $700 million. PepsiCo net jumped 5%.

Tollbooth Index dropped 1.2% or 114.21 to 9,163.25.

Earnings Review

Alcoa Inc. (AA) dropped 1.4% or 22 cents to $15.85 after the aluminium producer reported said net revenue in the third-quarter ending in September advanced 6% to $6.2 billion from a year ago period.

Net income in the quarter surged 521% to $149 million or 12 cents a diluted share compared to $24 million or 2 cents from a same quarter last year.

Auxilium Pharmaceuticals, Inc (AUXL) surged 11.7% or $3.49 to $33.25 after the biopharmaceutical company agreed to be acquired by Ireland-based Endo International Plc for $1.67 billion in cash and stock.

The Gap Inc (GPS) plunged 11.9% or $4.98 to $36.92 after chief executive officer Glenn Murphy announced to retire in February. Art Peck and the head of digital business will assume charge from February 1.

The specialty apparel retailer said net sales in the five-week period ending on October 4 increased 1.4% to $ 1.48 billion from a year ago month and comparable sales for September were flat from 3% dropped in September 2013.

Impax Laboratories In (IPXL) soared 13.3% or $3.16 to $27 after the generic products maker agreed to acquire two privately held drug makersTower Holdings Inc. and Lineage Therapeutics Inc. for $700 million in cash.

Kindred Healthcare, Inc (KND) climbed 9.2% or $1.82 to $21.56 after the healthcare service provider agreed to acquire Gentiva Health Services Inc in a cash and stock deal valued at about $1.8 billion.

The company will pay $14.50 per share in cash and $5 per share of Gentiva.

The deal is expected to close in the first-quarter of 2015.

Lindsay Corporation (LNN) surged 8.4% or $6.30 to $81.15 after the infrastructure products provider said revenues in the fourth-quarter ending in August fell 0.6% to $147.5 million from a year ago period.

Net income in the quarter jumped 8.7% to $11.3 million or 89 cents a diluted share compared to $10.4 million or 81 cents from a same quarter last year.

PepsiCo, Inc. (PEP) gained 29 cents to $94.23 after the food and beverage maker reported net revenue in the third-quarter ending in September increased 1.8% to $17.2 billion from a year ago period.

Net income in the quarter advanced 5% to $2 billion or $1.32 a diluted share compared to $1.9 billion or $1.23 from a same quarter last year.

Ruby Tuesday, Inc (RT) surged 18.6% or $1.10 to $7.02 after the dining restaurants operator said total revenue in the first-quarter ending on September 2 dropped 2.9% to $281.2 million from a year ago period.

Net in the quarter swung to profit $2.6 million or 4 cents a diluted share compared to net loss of $22.2 million or 37 cents from a 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