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Market Update

General Mills Buys Annies, Barnes & Noble Sales Fall 7%


Author: Mukesh Buch
ticker.com
Last Update: 2:03 PM ET September 09 2014

12:45 PM New York General Mills agreed to acquire Annies for $820 million. American Airlines said revenue passenger miles was flat in August. Burlington Stores and Barnes & Noble net loss narrowed. J C Penney issued debentures for $350 million. Korn Ferry net surged 27%.

Tollbooth Index fell 0.2% or 24.10 to 9,527.64.

Earnings Review

Annies Inc (BNNY) surged 38.4% or $12.87 to $46.38 after the natural and organic food company signed agreement to be acquired by General Mills, Inc for about $820 million or $46 a share in cash.

The offer represents a 51% premium over Annie''s 30-day average closing price of $30.47. The transaction is expected to close later in the year.

American Airlines Group Inc (AAL) slipped 1.2% or 46 cents to $37.77 after the airline company said total revenue passenger miles in August was flat at 20 billion from a year ago month.

Total passenger load factor fell 0.9% to 84.6% and domestic and international traffic both declined 0.1% while regional traffic jumped 1.6%.

Burlington Stores Inc (BURL) climbed 3.6% or $1.29 to $37.35 after the discount retailer reported net sales in the second-quarter ending on August 2 soared 8.3% to $1.05 billion from a year ago period. Comparable store sales in the quarter jumped 4.7%.

Net loss in the quarter narrowed to $6.47 million or one cent a diluted share compared to $25.01 million or 19 cents from a same quarter last year.

The retailer lifted revenue forecast for the third-quarter to increase between 6.4% and 7.4% and comparable store sales to jump between 3% and 4%.

The company expected adjusted diluted earnings per share for the year to increase in the range of $1.52 to $1.58 from the earlier guidance of $1.25 to $1.35.

Barnes & Noble, Inc (BKS) jumped 3.8% or 89 cents to $24.29 after the bookseller said sales in first-quarter ending on August 2 declined 7% to $1.2 billion from a year ago period.

Net loss in the quarter narrowed to $28.4 million or 56 cent a diluted share compared to $87 million or $1.56 from a same quarter last year.

The company said comparable store sales in retail segment decline 5.1% and from the college segment comparable store sales dropped 2%.

J C Penney Company Inc (JCP) gained 8 cents to $11.02 after the department store operator placed $350 million of debentures to repurchase as much as $300 million of debt maturing in 2016 and 2017.

Korn/Ferry International (KFY) fell 1% or 30 cents to $30.33 after the talent management solution provider reported revenue in the first-quarter ending in July climbed 10% to $260.3 million from a year ago period.

Net income in the quarter surged 27.2% to $14.5 million or 29 cents a diluted share compared to $11.4 million or 24 cents from a same quarter last year.

Leidos Holdings Inc (LDOS) tumbled 15.8% or $5.94 to $31.92 after the science and technology solutions provider stated revenue in the second-quarter ending on August 1 plunged 10.4% to $1.31 billion from a year ago period.

Net in the quarter swung to a loss of $436 million or $5.92 a diluted share compared to profit of $42 million or 50 cents from a 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