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Market Update

Federal Mogul and Tenneco to Merge; U.S. Approves Bayer,Monsanto Deal


Author: Mukesh Buch
ticker.com
Last Update: 2:16 PM EDT April 10 2018

1:55 PM New York City, New York Tenneco agreed to buy Federal-Mogul from Icahn Enterprises for $5.4 billion. MSC Industrial Direct reported strong profit and revenues. The U.S. Justice Department approved Monsanto merger with Bayer AG. Simply Good Foods net jumped.

Tollbooth Index jumped 115.23 or 0.8% to 14,657.61 and in the year-to-date soared 6.4%.

Earnings Review

Icahn Enterprises LP (IEP) jumped 2.9% or $1.72 to $61.41 after the diversified investments provider agreed to divest its brake parts, wipers and chassis components supplier Federal Mogul Corp to Tenneco Inc for about 5.4 billion in cash and stock.

Tenneco plans to split into two companies after the acquisition as one will focus on aftermarket and ride performance products and another will manage power train technology.

The transaction is expected to close in the second-half of 2018,

MSC Industrial Direct Company Inc (MSM) gained 1.4% or $1.32 to $93.06 after the industrial products distributor reported net sales in the second-quarter ending on March 3 soared 9.3% from a year ago to $769 million.

Net income in the quarter more than doubled to $117.6 million or $2.06 per diluted share from $53.6 million or 93 cents in the same quarter last year.

The industrial products distributor forecasted third-quarter net sales in the range of $820 million to $835 million and diluted earnings per share in the range of $1.37 and $1.43.

Monsanto Company (MON) edged up to $125.30 after the U.S. Justice Department approved the merger with Germany-based drugs and pesticides maker Bayer AG for $62.5 billion on the conditions of selling of additional assets.

The Simply Good Foods Company (SMPL) slid 5 cents to $12.93 after the branded nutritional foods and snack food maker said revenues in the second-quarter ending on February 24 increased 6.8% from a year ago to $109.3 million.

Net income in the quarter surged to $41.3 million or 56 cents per diluted share from $3.6 million in the same quarter last year.

Simply Good Foods reaffirmed fiscal 2018 net sales in the range of 4% to 6%.

Simulations Plus Inc (SLP) increased 1.9% or 30 cents to $16.10 after the software developer stated revenues in the second-quarter ending in February surged 28.9% from a year ago to $7.4 million.

Net income in the quarter jumped to $3.5 million or 19 cents per diluted share from $1.2 million or 7 cents in 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