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Market Update

Palo Alto Surges; Krispy Kreme, Lululemon Plunge


Author: Mukesh Buch
ticker.com
Last Update: 11:46 AM ET September 10 2015

11:45 AM New York – Assurant agreed to sell businesses for $1.92 billion to Canada-based Sun Life Financial. Dell plans to invest $125 billion in China in the next five years. Hovnanian net swung to a loss. Krispy Kreme profit increased 4%. Lululemon net dropped 2%. Palo Alto net loss widened.

Tollbooth Index increased 52.58 or 0.5% to 10,259.10.

Earnings Review

Assurant, Inc (AIZ) gained 1.7% or $1.23 to $74.55 after the insurance services provider agreed to sell its employee benefits business to Canada-based insurer Sun Life Financial Inc. for about $940 million.

Separately, the company also divested its employee benefits business Sun Life Financials for about $975 million.

Both transactions are expected to close by the end of first-quarter in 2016.

Agilent Technologies Inc (A) rose 4 cents to $35.59 after the electronic measurements maker agreed to buy privately held Seahorse Bioscience for $235 million in cash.

The transaction is expected to close in the first-week of November.

Dell Inc, the computer maker’s chief executive said the company plans to invest $125 billion in China in next five years to expand the business in the second-largest of economy.

Dell went private in 2013 and the company has been operating China for last 20 years.

Hovnanian Enterprises, Inc (HOV) dropped 3.6% or 7 cents to $2 after the single-family home builder said revenues in the third-quarter ending in July fell 1.9% from a year ago to $540.6 million.

Net in the quarter swung to a loss of $7.7 million or 5 cents per diluted share compared to profit of $17.1 million or 11 cents from the same quarter last year.

Krispy Kreme Doughnuts (KKD) tumbled 12.9% or $2.29 to $15.44 after the doughnuts wholesaler reported revenues in the second-quarter ending on August 2 jumped 5.6% from a year ago to $127.3 million.

Net income in the quarter increased 3.5% to $5.9 million or 9 cents per diluted share compared to $5.7 million or 8 cents from the same quarter last year.

Lululemon Athletica Inc (LULU) plunged 11.7% or $7.52 to $56.53 after the yoga-wear maker reported net revenues in the second-quarter ending on August 2 soared 16% from a year ago to $453 million.

Comparable store sales in the quarter jumped 6%

Net income in the quarter dropped 2.1% to $47.7 million or 34 cents per diluted share compared to $48.7 million or 33 cents from the same quarter last year.

For the third-quarter, the yoga-wear retailer forecasted net revenues in the range of $477 million to $482 million and earnings per share between 35 cents and 37 cents.

For the year, Lululemon estimated revenues between $2.025 billion and $2.055 billion and diluted earnings per share in the range of $1.87 to $1.92.

Palo Alto Networks Inc (PANW) surged 7.4% or $12.47 to $177.64 after the security platform provider said total revenues in the fourth-quarter ending in July soared 59.3% from a year ago to $283.9 million.

Net loss in the quarter widened to $46 million or 55 cents per diluted share compared to $32.1 million or 41 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