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Market Update

PepsiCo Net Drops; Container Store, Skyworks Plunge


Author: Mukesh Buch
ticker.com
Last Update: 12:21 PM ET October 06 2015

12:15 PM New York PepsiCo net tumbled 73%. Skyworks Solutions agreed to acquire smaller rival PMC-Sierra for $2 billion. AmerisourceBergen agreed to acquire PharMEDium Healthcare for $2.6 billion. Sarepta Therapeutics priced its public offering at $39 a share. Container Store profit plunged 61%.

Tollbooth Index slipped 58.82 or 0.6% to 10,422.74.

Earnings Review

AmerisourceBergen Corp slipped 1.3% or $1.22 to $93.81 after the pharmaceutical service provider agreed to acquire its rival PharMEDium Healthcare Holdings Inc for about $2.58 billion in cash from a private equity firm Clayton, Dubilier & Rice.

The transaction is expected to close by the end of this year.

Brink''s Company (BCO) decreased 1.8% or 52 cents to $29.18 after the secure logistics and security solution provider forecasted revenues for the fiscal 2016 of about $3 billion and earnings per share between $2 and $2.20.

For the fiscal 2015, the company estimated earnings per share in the range of $1.40 to $1.50.

Constellation Brands, Inc (STZ) fell 10 cents to $132.15 after the alcoholic beverages distributor forecasted fiscal 2016 sales in beer business to jump 10% and lifted earnings per share estimate between $4.60 and $4.80 from the previous guidance of $4.55 to $4.75.

Container Store Group Inc (TCS) tumbled 16% or $2.49 to $13.08 after the specialty retailer said revenues in the second-quarter ending onAugust 29 increased 1.2% from a year ago to $195.5 million.

Comparable store sales in the quarter rose 0.1%.

Net income in the quarter plunged 60.9% to $2.7 million or 6 cents per diluted share compared to $6.9 million or 14 cents from the same quarter last year.

For the year, the company forecasted net sales in the range of $800 to $815 million and diluted earnings per share in the range of 30 cents to 38 cents.

PepsiCo, Inc (PEP) gained 1.8% or $1.73 to $97.54 after the food and beverage maker reported revenues in the third-quarter ending onSeptember 5 declined 5% from a year ago to $16.33 billion.

Net income in the quarter tumbled 73% to $533 million or 36 cents per diluted share compared to $2.01 billion or $1.32 from the same quarter last year.

PepsiCo lifted earnings per share forecast for the year to about 9% form the earlier estimate of 8% and plans to return $9 billion to shareholders through $4 billion in dividends and share repurchases of about $5 billion in fiscal 2015.

Sarepta Therapeutics Inc (SRPT) plummeted 12.5% or $5.21 to $36.60 after the biopharmaceutical company priced its underwritten public offering of 3.25 million shares at a price of $39 per share to raise up to $127 million.

The offering is expected to close on or about October 9.

Skyworks Solutions Inc (SWKS) declined 7.6% or $6.23 to $75.64 after the chipmaker agreed to acquire smaller rival PMC-Sierra Inc. for about for $10.50 per share or $2 billion in cash.

Under the terms, stockholders of PMC will receive $10.50 in cash per share, a 37% premium to the closing price of October 5.

The transaction is expected to close in the first-half of fiscal 2016.

The company forecasted revenue for the fiscal fourth-quarter of 2015 of about $880 million and non-GAAP diluted earnings per share of about $1.52.

Village Super Market, Inc (VLGEA) fell 22 cents to $25.28 after the supermarket operator said revenues in the fourth-quarter ending on July 25 increased 2.3% from a year ago to $405.8 million.

Net income in the quarter surged 16.9% to $6.9 million or 49 cents per diluted share compared to $5.9 million or 42 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