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Market Update

Expedia to Acquire Orbitz for $1.4 B, Tripadvisor Surges


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

12:10 PM New York Avon net loss widened on 13% fall in revenues. BorgWarner dropped 1%. Boeing secured two orders worth about $3.1 billion. Expedia agreed to acquire rival Orbitz Worldwide for $1.38 billion. NVIDIA net surged 31%. Tesla net loss widened. Tripadvisor surged after net climbed 80%.

Tollbooth Index jumped 1% or 102.15 to 10,435.12.

Earnings Review

Avon Products, Inc (AVP) jumped 2.8% or 24 cents to $8.82 after the beauty product maker said net sales in the fourth-quarter ending in December declined 13% to $2.28 billion from a year ago period.

Net loss in the quarter widened to $330.7 million or 75 cents per diluted share compared to $69.1 million or 16 cents from the same quarter last year.

Bunge Ltd (BG) plunged 8.1% or $7.35 to $83.79 after the food processing company stated net sales in the fourth-quarter ending in December plummeted 15.1% to $13.90 billion from a year ago period.

Net income in the quarter tumbled 28.7% to $82 million or 56 cents per diluted share compared to $115 million or 78 cents from the same quarter last year.

BorgWarner Inc (BWA) climbed 3.7% or $2.14 to $60.16 after the automobile parts maker reported net sales in the fourth-quarter ending in December climbed 6.4% to $2 billion from a year ago period.

Net income in the quarter net fell 1.1% to $139.9 million or 61 cents per diluted share compared to $141.4 million or 62 cents from the same quarter last year.

Boeing Co (BA) rose 2 cents to $147.94 after the aerospace company and Korean Air today finalized an order for five 777 Freighters. The order, valued at more than $1.5 billion.

Korean Air currently operates an all-Boeing freighter fleet of 26 airplanes.

Separately the Boeing and Transavia Company, a wholly owned subsidiary of the Air France KLM Group, ordered for 17 Next-Generation 737-800s, including options for three additional airplanes. The order, valued at $1.6 billion.

On media report, Chinese budget airline Spring Airlines Co. is in talk with Airbus Group NV and Boeing Co. to buy as many as 30 planes after travel demand increases in the country..

Expedia Inc (EXPE) surged 15.4% or $12.02 to $90.20 after the online-travel booking service provider agreed to acquire rival online travel company Orbitz Worldwide Inc. for $12 per share in cash, including brands CheapTickets, ebookers and HotelClub for about $1.38 billion.

Kellogg Company (K) declined 3.5% or $2.29 to $64.01 after the ready-to-eat cereal and convenience food maker reported net sales in the fourth-quarter ending in December edged up 0.3% to $3.51 billion from a year ago period.

Net in the quarter swung to a loss of $293 million or 82 cents per diluted share compared to profit of $818 million or $2.24 from the same quarter last year.

Kelloggg forecasted net sales in the fiscal 2015 unchanged compared to 2014.

NVIDIA Corporation (NVDA) soared 7.2% or $1.49 to $22.30 after the cloud and mobile application maker said revenues in the fourth-quarter ending in December climbed 9.6% to $1.25 billion from a year ago period.

Net income in the quarter surged 31.4% to $193.1 million or 35 cents a diluted share compared to $146.9 million or 25 cents from the same quarter last year.

The company intends to return approx $600 million to shareholders through quarterly cash dividends and share repurchases in fiscal 2016.

Tesla Motors Inc (TSLA) plummeted 6.8% or $14.48 to $198.30 after the electric vehicle maker said revenues in the fourth-quarter ending in December jumped 12.7% to $956.7 million from a year ago period.

Net loss in the quarter widened to $107.6 million or 86 cents a diluted share compared to $74.7 million or 60 cents from the same quarter last year.

Tesla said it will start equipment installation in the factory later this year and begin battery production in partnership with Panasonic Corporation by 2016.

For 2015, Tesla forecasted to deliver about 55,000 Model S and Model X vehicles.

Tripadvisor Inc (TRIP) surged 22.4% or $15.08 to $82.33 after the online travel company said revenues in the fourth-quarter ending in December advanced 35.2% to $288 million from a year ago period.

Net income in the quarter climbed 80% to $36 million or 25 cents a diluted share compared to $20 million or 14 cents from the 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