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Market Update

PepsiCo, Time Warner Net Tumble, Rite Aid in $2 B Deal with Envision


Author: Mukesh Buch
ticker.com
Last Update: 12:24 PM ET February 11 2015

12:00 PM New York AOL net soared 65%. Carlyle net tumbled 77% on 49% decline in revenues. Lorillard profit climbed 16%. Mosaic net soared 180%. PepsiCo net plunged 25%. Rite Aid agreed to buy Envision Pharma for $2 billion. Time Warner net declined 27%. Reuters net swung to profit.

Tollbooth Index rose 0.2% or 22.85 to 10,319.24.

Earnings Review

AOL, Inc (AOL) tumbled 13.2% or $5.94 to $38.94 after the online content provider said revenues in the fourth-quarter ending in December jumped 4.6% to $710.3 million from a year ago period.

Net income in the quarter soared 65.5% to $59.6 million or 73 cents a diluted share compared to $36 million or 43 cents from the same quarter last year.

The Carlyle Group LP (CG) gained 24 cents to $27.29 after the asset manager reported total revenues in the fourth-quarter ending in December plunged 48.8% to $839.1 million from a year ago period.

Net income in the quarter tumbled 77.1% to $16.3 million or 23 cents per diluted share compared to $71.3 million or $1.17 from the same quarter last year.

Hilton Worldwide Holdings Inc (HLT) jumped 2.4% or 67 cents to $28.13 after the hotels and motels operator completed the sale of Waldorf Astoria New York worth about $1.95 billion and will use the proceeds to buy four hotels in Florida and one in San Francisco.

Lorillard Inc (LO) rose 6 cents to $67.13 after the cigarette maker stated net sales in the fourth-quarter ending in December increased 1.7% to $1.77 billion from a year ago period.

Net income in the quarter climbed 16.4% to $327 million or 91 cents per diluted share compared to $281 million or 76 cents from the same quarter last year.

Mosaic Co (MOS) increased 1.7% or 88 cents to $51.64 after the fertilizer product producer said net sales in the fourth-quarter ending in December climbed 9.2% to $2.38 billion from a year ago period.

Net income in the quarter surged 180% to $360.7 million or 97 cents per diluted share compared to $128.9 million or 30 cents from the same quarter last year.

PepsiCo, Inc (PEP) jumped 2.1% or $2.06 to $100.05 after the food and beverage company reported net revenues in the fourth-quarter ending on December 27 fell 1% to $19.95 billion from a year ago period.

Net income in the quarter plunged 25% to $1.31 billion or 87 cents per diluted share compared to $1.74 billion or $1.12 from the same quarter last year.

PepsiCo forecasted earnings per share growth of 7% in fiscal 2015 and revenues to increase in mid-single digits compared to 2014.

The company also raised its yearly dividend by 7.3% to $2.81 per share and plans to return up to $9 billion to shareholders through payouts and buybacks in current year.

Rite Aid Corporation (RAD) surged 10.4% or 79 cents to $8.37 after the drugstore chain agreed to acquire pharmacy-benefit manager Envision Pharmaceutical Services for about $2 billion in a cash-and-stock from investment firm TPG.

The transaction is expected to close in September.

Time Warner Inc (TWX) added 5 cents to $80.76 after the media and entertainment group said net revenues in the fourth-quarter ending in December slid 0.9% to $7.53 billion from a year ago period.

Net income in the quarter plummeted 27% to $718 million or 84 cents per diluted share compared to $983 million or $1.06 from the same quarter last year.

The company said revenues form Warner Bros declined 5% to $3.8 billion while Turner revenue increased 2% to $2.6 billion. Revenues from HBO climbed 6% to $1.3 billion.

For the year, Time Warner forecasted earnings per share between $4.60 and $4.70 and raised quarterly dividend by 10% to 35 cents.

Thomson Reuters Corporation (TRI) declined 2.9% or $1.15 to $38.44 after the financial information service provider reported net revenues in the fourth-quarter ending in December fell 2.1% to $3.21 billion from a year ago period.

Net in the quarter swung to profit $1.16 billion or $1.43 a diluted share compared to a loss of $343 million or 43 cents from the same quarter last year.

The company forecasted organic revenues for the fiscal 2015 to increase and adjusted EBITDA margin between 27.5% and 28.5% and underlying profit margin in the range of 18.5% to 19.5% and free cash flow between $1.6 million and $1.8 billion.

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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