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Market Update

Morgan Stanley Net Tumbles, Weight Watchers Surges on Oprah Deal


Author: Mukesh Buch
ticker.com
Last Update: 1:04 PM ET October 19 2015

12:55 AM New York Morgan Stanley revenues and profit declined. Oprah Winfrey agreed to acquire 10% stake in Weight Watchers. Diebold agreed to acquire the Germany-based Wincor Nixdorf. WEX agreed to buy Electronic Funds Source for $1.1 billion. Halliburton net swung to a loss. Hasbro net soared 15%.

Tollbooth Index increased 36.66 or 0.4% to 10,653.99.

Earnings Review

Diebold Inc (DBD) jumped 6.1% or $2.06 to $35.61 after the automated teller machine maker agreed to acquire the Germany-based information technology provider Wincor Nixdorf AG for about $1.9 billion or 1.7 billion in cash and stock, 35% premium to Wincor''s closing price of October 16.

Genuine Parts Company (GPC) increased 2.2% or $1.86 to $85.13 after the automotive parts distributor said revenues in the third-quarter ending in September fell 2% from a year ago to $3.92 billion.

Net income in the quarter slipped 1.3% to $188 million compared to $190.5 million and diluted earnings per share were flat at $1.24 from the same quarter last year.

Halliburton Company (HAL) dropped 2.1% or 78 cents to $37.03 after the oil and gas services provider reported total revenues in the third-quarter ending in September slumped 5.7% from a year ago to $5.58 billion.

Net in the quarter swung to a loss of $54 million or 6 cents per diluted share compared to profit of $54 million or 6 cents from the same quarter last year.

The company booked $257 million in asset write-offs and severance costs and $62 million recorded as acquisition-related costs for Baker Hughes.

Hasbro, Inc (HAS) plunged 7.2% or $5.61 to $72.17 after the pre-school toy maker said revenues in the third-quarter ending in September were flat from a year ago to $1.47 billion.

Net income in the quarter soared 15% to $207.6 million or $1.64 per diluted share compared to $180.5 million or $1.40 from the same quarter last year.

Morgan Stanley (MS) dropped 5.6% or $1.91 to $32.04 after the financial services provider reported revenues in the third-quarter ending in September declined 12.8% from a year ago to $7.77 billion.

Net income in the quarter tumbled 42.3% to $943 million or 48 cents per diluted share compared to $1.63 billion or 83 cents from the same quarter last year.

The company said revenues in the fixed income and commodities trading segment plunged 41% to $583 million and revenues in institutional securities business declined 14% to $3.90 billion and global wealth management segment slumped 4% $3.64 billion from a year ago period.

M&T Bank Corporation (MTB) decreased 1.3% or $1.49 to $115.51 after the financial services provider stated net interest income in the third-quarter ending in September dropped 4% from a year ago to $770 million.

Net income in the quarter rose 2% to $280.4 million or $1.95 per diluted share compared to $275.3 million or $1.94 from the same quarter last year.

Microsemi Corporation (MSCC) slumped 4.6% or $1.72 to $35.64 after the analog and mixed-signal chip maker offered $11.50 per share to acquire semiconductor and software solution provider PMC-Sierra Inc valued at about $2.4 billion, a premium of about 12% to closing price of Friday.

Under the terms, the shareholders of PMC will receive $8.75 in cash and 0.0736 of a share.

Microsemi forecasted net sales for the fourth-quarter to be about $328 million and non-GAAP diluted earnings per share between 72 cents and 74 cents.

PMC-Sierra Inc surged 14.3% to $11.70.

WEX Inc (WEX) jumped 5.3% or $4.91 to $97.02 after the corporate payment solution provider agreed to acquire Electronic Funds Source LLC, transportation payments services provider for about $1.1 billion in cash and 4 million in stock to be issued to investment funds affiliated with Warburg Pincus.

Weight Watchers International, Inc (WTW) surged 86.9% or $5.89 to $12.67 after the weight management services provider confirmed that the TV show host and producer Oprah Winfrey agreed to acquire 10% stake worth about $43.2 million, including option to buy an additional 5%in the company.

Under the terms, the weight management company offered approx 6.4 million shares at $6.79 per share.

Winfrey also agreed to help company with marketing and offered right to use her name, image, likeness and endorsement for the company.

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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