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Market Update

Pfizer Terminates Allergan Deal, Monsanto Net Plunges


Author: Mukesh Buch
ticker.com
Last Update: 12:33 PM ET April 06 2016

12:35 PM New York – Pfizer terminate the agreement to acquire Ireland-based Botox maker Allergan. Acuity Brands and Constellation Brands net and revenues surged. Global Payments net soared 10%. Monsanto profit tumbled 26% on 13% decline in revenues. RPM Intl net swung to profit.

Tollbooth Index jumped 55.56 or 0.5% to 10,749.86.

Earnings Review

Acuity Brands, Inc (AYI) surged 10.6% or $23.95 to $248.95 after the lighting solutions provider reported net sales in the second-quarter ending in February soared 26% from a year ago to $777.8 million.

Net income in the quarter jumped 41% to $65.5 million or $1.49 per diluted share compared to $46.4 million or $1.07 per share from the same quarter last year.

Acuity said the integration of acquisitions ""continues to go well"", as in October the company acquired Juno Electric Lighting LLC the subsidiary of Schneider Electric SE and recently also acquired business-intelligence services provider Geometri.

Constellation Brands, Inc (STZ) jumped 4.3% or $6.52 to $157.88 after the wine, beverage alcohol maker net sales in the fourth-quarter ending in February jumped 14% from a year ago to $1.54 billion.

Net income in the quarter soared 13% to $243.4 million or $1.19 per diluted share compared to $214.6 million or $1.06 per share from the same quarter last year.

Separately, the wine maker agreed to acquire The Prisoner Wine Company brands, a portfolio of five highly rated wine brands from Huneeus Vintners for about $285 million in cash.

Transaction is expected to close by the end of this month.

Global Payments Inc (GPN) jumped 8.3% or $5.39 to $70.54 after the payment technology services provider said revenues in the third-quarter ending in February increased 2.2% from a year ago to $679.9 million.

Net income in the quarter surged 10.4% to $69.1 million or 53 cents per diluted share compared to $62.6 million or 46 cents per share from the same quarter last year.

In the year, the company lifted adjusted net revenue growth to the upper end of 10% to 12% over fiscal 2015 and also lifted margin expansion and cash earnings per share to the range from $2.93 to $3.

Monsanto Company (MON) fell 1.3% or $1.16 to $85.51 after the agricultural products provider reported net sales in the second-quarter ending in February plunged 12.9% from a year ago to $4.53 billion.

Net income in the quarter tumbled 25.9% to $1.06 billion or $2.41 per diluted share compared to $1.43 billion or $2.92 per share from the same quarter last year.

MSC Industrial Direct Co Inc (MSM) slipped 2.3% or $1.73 to $72.61 after the fasteners maker stated net sales in the second-quarter ending on February 27 fell 3.2% from a year ago to $684.1 million.

Net income in the quarter dropped 3.9% to $49.5 million or 80 cents per diluted share compared to $51.8 million or 84 cents per share from the same quarter last year.

Pfizer Inc (PFE) jumped 3.1% or 98 cents to $32.34 after the biopharmaceutical company agreed to terminate the agreement of $160 billion to acquire Ireland-based Botox maker Allergan Plc.

The U.S. Department of Treasury announcement on April 4 that there was a lot of debate and concluded qualified as an “Adverse Tax Law Change.” The Pfizer expected to save hundreds of millions of dollars in U.S. taxes annually.

At a yesterday afternoon press conference, the U.S. President Barack Obama said the rules meant to prevent ""one of the most insidious tax loopholes out there,"" the wealthy corporate must know their tax responsibility like working class Americans.

However, Pfizer agreed to pay Allergan $150 million for reimbursement of expenses associated with the transaction.

As earlier schedule, Pfizer will release its first-quarter financial results on May 3.

RPM International Inc (RPM) rose 23 cents to $48.12 after the specialty chemical product maker said net sales in the third-quarter ending in February jumped 4.5% from a year ago to $988.6 million.

Net in the quarter swung to profit $18.6 million or 14 cents per diluted share compared to a loss of $57.3 million or 44 cents per share 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