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Market Update

Dollar Tree Acquires Family Dollar for $8.5 B, Zillow to Buy Trulia


Author: Mukesh Buch
ticker.com
Last Update: 3:22 AM ET July 28 2014

12:15 PM New York Cummins net jumped 8%. Dollar Tree offered to buy Family Dollar for $8.5 billion. Roper net soared 41% on 13% increase of revenue and lifted outlook. RPM Intl net surged 66%. Tyson Foods net rose 4%. Tenneco profit climbed 29%. Zillow agreed to acquire Trulia for $3.5 billion.

Tollbooth Index fell 0.2% or 15.93 to 9,474.88.

Earnings Review

Cummins Inc (CMI) declined 3.4% or $5.18 to $144.93 after the diesel engine maker reported revenue in the second-quarter ending in June climbed 7% to $4.8 billion from a year ago.

Net income in the quarter jumped 7.7% to $446 million or $2.43 a diluted share compared to $414 million or $2.20 from a same quarter last year.

Dollar Tree, Inc (DLTR) climbed 3.3% or $1.80 to $56.01 after the discount stores operator offered to buy its rival Family Dollar Stores Inc for about $8.5 billion.

The offer of $74.50 per share consist $59.60 in cash that represents a premium of about 23% from closing price of $60.66 on Friday.

Dollar Tree said transaction values Family Dollar at an enterprise value of about $9.2 billion.

Roper Industries, Inc (ROP) advanced 3.4% or $4.89 to $147.65 after the industrial technology products maker reported net sales in the second-quarter ending in June climbed 12.9% to $885.2 million from a year ago.

Net income in the quarter soared 41.3% to $157.4 million or $1.56 a diluted share compared to $111.4 million or $1.11 from a same quarter last year.

Roper lifted its full year diluted earnings per share guidance between $6.22 and $6.36 to in the range of $6.27 to $6.37.

The company forecasted diluted earnings per share for the third quarter between $1.49 and $1.53.

RPM International Inc (RPM) jumped 2.5% or $1.12 to $45.51 after the paint and coatings maker said net sales in the fourth-quarter ending in May soared 9.1% to $1.28 billion from a year ago period.

Net income in the quarter surged 66.3% to $108.8 million or 80 cents a diluted share compared to $65.4 million or 49 cents from a same quarter last year.

Tyson Foods, Inc (TSN) soared 3.7% or $1.48 to $41.03 after the food production company stated sales in the third-quarter ending on June 29 jumped 10.9% to $9.68 billion from a year ago period.

Net income in the quarter increased 4.4% to $260 million or 73 cents a diluted share compared to $249 million or 68 cents from a same quarter last year.

Separately, today the company singed an agreement with JBS SA to sell its poultry businesses in Mexico and Brazil in a transaction valued at $575 million in cash.

Tenneco Inc (TEN) slipped 1.8% or $1.23 to $66.79 after the ride controlling parts maker said revenue in the second-quarter ending in June soared 8% to $2.24 billion from a year ago.

Net income in the quarter climbed 28.6% to $81 million or $1.32 a diluted share compared to $63 million or $1.02 from a same quarter last year.

Zillow Inc fell 1% or $1.37 to $157.30 after the real estate services provider agreed to acquire Trulia, Inc, real estate website for $3.5 billion in a stock-for-stock transaction.

The transaction is expected to close in 2015.

The two sites will retain their separate identity and together they have 137 million unique visitors last month.

The two companies combined revenues is only 4% of the $12 billion spent a year on advertising annually. Most of the advertising is still in the traditional print, radio and television channels.

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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