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Market Update

Lennar in $5.7 B Deal with CalAtlantic; CNA Financial, Loews Net Fall


Author: Mukesh Buch
ticker.com
Last Update: 10:11 AM EDT October 30 2017

11:45 PM New York ACCO Brands lifted sales outlook. Affiliated Managers net soared on 8% jump in revenues. CNA Financial profit tumbled 58%. Constellation Brands agreed to buy 9.9% stake in Canopy Growth Corp. Lennar agreed to acquire CalAtlantic for $5.7 billion. Loews profit plunged.

Tollbooth Index fell 22.02 or 0.2% to 13,041.04.

Earnings Review

ACCO Brands Corporation (ACCO) gained 1.3% or 18 cents to $13.20 after the traditional office products maker said net sales in the third-quarter ending in September soared 23% from a year ago to $532.2 million.

Net income in the quarter surged 34.8% to $30.6 million or 28 cents per diluted share from $22.7 million or 21 cents in the same quarter last year.

ACCO Brands forecasted fiscal 2017 sales to jump between 24% to 26% and earnings per share in the range of $1.13 to $1.16 and free cash flow of about $150 million.

Affiliated Managers Group, Inc (AMG) dropped 2.7% or $5.10 to $185.58 after the investment manager said revenues in the third-quarter ending in September jumped 7.5% from a year ago to $585.7 million.

Net income in the quarter soared 13.8% to $125.4 billion or $2.22 per diluted share from $110.2 billion or $2.02 in the same quarter last year.

CNA Financial Corp (CNA) jumped 3.6% or $1.85 to $52.64 after the property, and casualty insurance provider reported total revenues in the third-quarter ending in September fell 1.2% from a year ago to $2.4 billion.

Net income in the quarter tumbled 58% to $144 million or 53 cents per diluted share from $343 million or $1.26 in the same quarter last year.

Constellation Brands, Inc (STZ) rose 75 cents to $212.65 after the beverage alcohol maker agreed to acquire 9.9% stake in Canada-based cannabis maker Canopy Growth Corp for about C$245 million or $191.06 million.

Canopy Growth Corp stock soared 13.2% or $1.69 to $14.48.

Lennar Corporation (LEN) declined 3% or $1.75 to $56.26 after the homebuilder agreed to acquire CalAtlantic Group for $5.7 billion and including debt of $3.6 billion included, the deal is valued more than $9.3 billion.

Loews Corporation (L) advanced 2.2% or $1.05 to $49 after the property and casualty insurance provider reported total revenues in the third-quarter ending in September slumped 7% from a year ago to $3.5 billion.

Net income in the quarter dropped 52%% to $157 million or 46 cents per diluted share from $327 million or 97 cents in the same quarter last year.

Owens Corning (OC) increased 1.4% or $1.15 to $80.56 after the building materials supplier agreement to buy European mineral wool insulation firm Paroc Group for about $1.04 billion or 900 million from the private equity firm CVC Capital Partners.

The transaction is expected to close in early 2018.

Roper Technologies Inc (ROP) fell $1.54 to $256.03 after the industrial machinery and equipment maker reported revenues in the third-quarter ending in September surged 23% from a year ago to $1.2 billion.

Net income in the quarter jumped 13.9% to $190.3 million or $1.84 per diluted share from $167.1 million or $1.63 in the same quarter last year.

Roper lifted full-year earnings per share forecast between $9.27 and $9.33 from the earlier estimate of $9.12 to $9.30.

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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