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Market Update

Fox Withdraws Time Bid; Walgreen in Inversion-Free Deal


Author: Mukesh Buch
ticker.com
Last Update: 2:06 PM ET August 06 2014

2:00 PM New York – AOL net fell 1% but revenue climbed. Cerner acquired health information technology business from Siemens for $1.3 billion. Cognizant net surged 24% on sales growth in the U.S. Chesapeake net tumbled 68%. Time Warner net soared 10%. Walgreen reversed its plan for inversion and stay in the U.S.

Tollbooth Index slid 0.02% or 1.81 to 9,239.34.

Earnings Review

AOL Inc (AOL) surged 8.3% or $3.23 to $42.23 after the online content provider said total revenue in the second-quarter ending in June climbed 12% to $606.8 million from a year ago period.

Net income in the quarter fell 1% to $28.2 million or 34 cents a diluted share compared to $28.5 million or 35 cents from a same quarter last year.

Cerner Corporation (CERN) jumped 2.6% or $1.43 to $55.77 after the healthcare devices and hardware supplier agreed to acquire health information technology business unit of Siemens for $1.3 billion in cash.

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

Cognizant Technology Solutions Corp (CTSH) plunged 14% or $7.01 to $42.97 after the information technology reported revenue in the second-quarter ending in June soared 16.5% to $2.52 billion from a year ago period.

Net income in the quarter surged 23.8% to $371.9 million or 61 cents a diluted share compared to $300.4 million or 35 cents from a same quarter last year.

The company forecasted revenue in the third-quarter between $2.55 billion and $2.58 billion and for the year to jump at least 14% compared to 2013.

Chesapeake Energy Corporation (CHK) slid 4 cents to $26.02 after the oil and gas explorer said total revenue in the second-quarter ending in June climbed 10.3% to $5.15 billion from a year ago period.

Net income in the quarter tumbled 68.3% to $145 million or 22 cents a diluted share compared to $457 million or 66 cents from a same quarter last year.

Devon Energy Corp (DVN) gained 73 cents to $75.27 after the energy company stated total revenue in the second-quarter ending in June soared 45.9% to $4.51 billion from a year ago period.

Net earnings in the quarter slid 1.2% to $675 million or $1.64 a diluted share compared to $683 million or $1.68 from a same quarter last year.

Parker-Hannifin Corporation (PH) declined 5.6% or $6.51 to $108.51 after the diversified industrial equipment maker reported revenues in the fourth-quarter ending in June jumped 3% to $3.53 billion from a year ago period.

Net income in the quarter climbed 11.1% to $301.2 million or $1.98 a diluted share compared to $271.1 million or $1.78 from a same quarter last year.

The company expected earnings per diluted share for the year in the range of $7 to $7.80 or $7.25 to $8.05 on an adjusted basis.

Time Warner Inc (TWX) tumbled 12.2% or $10.37 to $74.83 after the media and entertainment company reported revenue in the second-quarter ending in June jumped 2.7% to $6.79 billion from a year ago period.

Net income in the quarter soared 10.2% to $850 million or 95 cents a diluted share compared to $771 million or 81 cents from a same quarter last year.

Revenues at HBO in the quarter soared 16.5% to $1.4 billion and revenue at the Turner division that operates CNN jumped 5% to $2.75 billion. Revenue from the Warner Bros dropped 2% to $2.9 billion from a year ago.

Separately, Rupert Murdoch’s 21st Century Fox is abandoned its $80 billion to take over bid for the company.

Walgreen Company (WAG) plunged 15.4% or $10.62 to $58.49 after the drugstore chain is looking to complete the purchase of Switzerland-based Alliance Boots GmbH in a deal that will not move its headquarters to Europe to avoid U.S. taxes.

Walgreens is expected to acquire the remaining 55% stake for about $5.27 billion in cash, plus shares that valued $8.4 billion or £5 billion to complete the acquisition of British pharmacy chain.

Walgreens had acquired 45% of the Alliance Boots in 2012 and had the option to acquire the remaining stake in three years.

The combined enterprise will be named Walgreens Boots Alliance and headquartered in the Chicago, Illinois and Boots will continue to be headquartered in Nottingham, U.K.

The transaction is expected to complete in the first quarter of calendar 2015.

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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