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Market Update

GE in $23 B Deal with Blackstone and Wells Fargo, Excel Trust Surges 14%


Author: Mukesh Buch
ticker.com
Last Update: 12:52 PM ET April 10 2015

12:50 PM New York Constellation Brands net surged 37%. Excel Trust surged after it agreed to be acquired by Blackstone Property Partners for $15.85 per share. Fidelity National Information Services plunged on weak outlook. GE plans to divest real estate portfolio toBlackstone Group and Wells Fargo for $23 billion.

Tollbooth Index slid 0.1% or 13.52 to 10,734.14.

Earnings Review

Constellation Brands, Inc (STZ) gained 72 cents to $120.78 after the alcoholic beverages wholesaler reported net sales in the fourth-quarter ending in February jumped 4.9% to $1.51 billion from a year ago period.

Net income in the quarter surged 36.5% to $214.6 million or 98 cents per diluted share compared to $157.2 million or 73 cents from the same quarter last year.

Excel Trust Inc (EXL) surged 14.4% or $1.98 to $15.82 after the real estate investment trust agreed to be acquired by Blackstone Property Partners L.P. for $15.85 per share, a premium of about 15% to closing price on Thursday, in an all-cash transaction valued at about $2 billion.

Fidelity National Information Services (FIS) plunged 6.4% or $4.37 to $63.72 after the banking and payments technology provider lowered its adjusted earnings per share forecast for the first quarter in the range of 64 cents to 66 cents compared to earlier guidance of 67 cents to 72 cents per share.

For the full-year its estimated adjusted earnings per share between $3.27 and $3.37 from previous estimated range of $3.37 to $3.49.

General Electric Company (GE) soared 7.5% or $1.93 to $27.66 after the diversified conglomerate said it plans to divest most of its real estate portfolio, GE Capital Real Estate worth about $23 billion to Blackstone Group LP and Wells Fargo & Co in the next two years.

The company plans to divest its financial segment and increase its focus on core businesses, industrial and engineering divisions.

Separately, GE said its board had authorized to set a share buyback plan for up to $50 billion and plans to return to shareholders as much as $90 billion in the next three years including dividends and proceeds from the sale of financing unit.

Gencorp Inc (GY) plummeted 6.5% or $1.48 to $21.28 after the aerospace and defense products maker stated net sales in the first-quarter ending in February slumped 4.1% to $318.6 million from a year ago period.

Net loss in the quarter widened to $3.9 million or 7 cents per diluted share compared to $2.3 million or 4 cents from the same quarter last year.

PriceSmart Inc (PSMT) declined 3.5% or $2.98 to $82.12 after the wholesale clubs operator said total net sales in the second-quarter ending in February soared 11.2% to $750.3 million from a year ago period.

Net income in the quarter plunged 12.4% to $24.8 million or 82 cents per diluted share compared to $28.3 million or 93 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