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Market Update

Honeywell, Joy Global, Valeant Jump; Global Payments, Lakeland Plunge


Author: Mukesh Buch
ticker.com
Last Update: 11:27 AM ET December 16 2015

11:10 AM New York Global Payments agreed to acquire Heartland Payment for $4.3 billion. Honeywell reaffirmed 2015 earnings outlook. Heico net surged 19%. Joy Global net swung to a loss on 24% decline in revenues. Valeant lowered revenues outlook.

Tollbooth Index gained 20.89 or 0.2% to 10,851.84.

Earnings Review

Blackstone Group LP (BX) rose 17 cents to $29.13 after the asset manager agreed to acquire minority stake in India-based IBS Software for about $170 million from General Atlantic and other stakeholders.

Global Payments Inc (GPN) plunged 8.4% or $6 to $65.42 after the payment technology services provider agreed to acquire smaller rival Heartland Payment Systems Inc. for about $4.3 billion in a cash and stock.

The transaction is expected to close in the fourth quarter fiscal year 2016.

The company forecasted revenues for the second-quarter to jump 4% to $722 million compared to $697 million and GAAP earnings per share of about 60 cents from 55 cents in the same period a year ago.

The company is schedule to release its second-quarter result on January 6, 2016.

Honeywell International Inc (HON) jumped 3.9% or $3.86 to $102.33 after the diversified technology company forecasted revenues for the fiscal 2016 to increase between 4% and 6% or $39.9 billion to $40.9 billion and earnings per share in the range of $6.45 to $6.70.

The company reaffirmed its fiscal 2015 estimate for earnings per share of $6.10 per share on revenue of $38.5 billion.

Heico Corporation (HEI) slid 14 cents to $49.47 after the aerospace and electronics products maker reported revenues in the fourth-quarter ending in October soared 12.5% from a year ago to $328.7 million.

Net income in the quarter surged 19% to $38.3 million or 56 cents per diluted share compared to $32.1 million or 48 cents per share from the same quarter last year.

The company estimated net sales and net income in the fiscal 2016 to increase between 8% and 10% from fiscal 2015 and consolidated operating margin of about 18.5%.

Joy Global Inc (JOY) advanced 3.9% or 45 cents to $11.91 after the mining equipment maker said revenues in the fourth-quarter ending in October declined 24% from a year ago to $865.6 million.

Net in the quarter swung to a loss of $1.3 billion or $13.43 per diluted share compared to profit of $129.7 million or $1.31 per share from the same quarter last year.

The company forecasted revenue for the fiscal 2016 between $2.4 billion and $2.6 billion and adjusted diluted earnings per share in the range of 10 cents to 50 cents.

Lakeland Industries, Inc (LAKE) tumbled 12.6% or $1.88 to $13.08 after the safety garments and accessories maker said net sales in the third-quarter ending in October declined 6% from a year ago to $24.9 million.

Net in the quarter swung to profit $2.1 million or 29 cents per diluted share compared to a loss of $2.5 million or 42 cents per share from the same quarter last year.

Mechel OAO (MTL) soared 6.3% to 89.4 cents after the Russia-focused mining, steel and power conglomerate said revenues in the nine-month period ending in September plunged 35% from a year ago to $3.28 billion.

Net loss in the period narrowed to $1.01 billion compared to $1.22 billion in the same period a year ago.

Valeant Pharmaceuticals International, Inc (VRX) soared 6.5% or $7.18 to $117.44 after the specialty pharmaceutical products maker lowered revenues forecast for the fiscal 2015 between $10.4 billion and $10.5 billion from previous guidance of about $11 billion to $11.2 billion.

Valeant also revised its adjusted earnings per share forecast for the year in the range of $10.23 to $10.33 compared to earlier estimated range of $11.67 to $11.87.

For the fiscal year 2016, the company forecasted revenues between $12.5 billion and $12.7 billion and adjusted earnings per share in the range of $13.25 to $13.75.

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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