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Market Update

Roper to Buys Deltek for $2.8 B, Verizon Divests Data Centres


Author: Mukesh Buch
ticker.com
Last Update: 10:22 AM ET December 06 2016

12:10 PM New York AutoZone net soared 8%. Barnes & Noble Education net declined 12% but lifted sales forecast. HD Supply net tumbled 76% and reaffirmed on sales outlook. Michaels net slid. Roper agreed to acquire smaller rival Deltek for $2.8 billion. Verizon to sell 29 data centres in $3.6 billion.

Tollbooth Index slipped 22.37 or 0.2% to 11,044.55.

Earnings Review

AutoZone, Inc (AZO) increased 1.2% or $9.63 to $786.05 after the automobile parts and accessories retailer said net sales in the first-quarter ending on November 19 advanced 3.4% from a year ago to $2.5 billion.

Same-store sales in the quarter increased 1.6%.

Net income in the quarter soared 7.8% to $278.1 million or $9.36 per diluted share compared to the $258.1 million or $8.29 per share from the same quarter last year.

Barnes & Noble Education Inc (BNED) tumbled 13.5% or $1.56 to $10.03 after the bookstores operator stated revenues in the second-quarter ending on October 29 rose 2% from a year ago to $770.7 million.

Comparable store sales in the quarter dropped 2.9%.

Net income in the quarter declined 12.3% to $29.3 million or 63 cents per diluted share compared to the $33.4 million or 69 cents per share from the same quarter last year.

In the fiscal year 2017, the retailer forecasted total sales to grow between 3% and 4% while comparable store sales to decrease between 2% and 3% compared to the year ago period.

HD Supply Holdings Inc (HDS) rose 19 cents to $39.92 after the industrial products distributor reported net sales in the third-quarter ending in October gained 3.4% from a year ago to $2 billion.

Net income in the quarter tumbled 76% to $60 million or 30 cents per diluted share compared to the $250 million or $1.24 per share from the same quarter last year.

HD Supply said preliminary net sales in November of about $526 million and average daily sales growth of approximately 2.3% from a year ago period.

In the fourth-quarter, the industrial products distributor reaffirmed net sales in the range of $1.61 billion and $1.67 billion and operating profit between $160 million and $175 million and diluted earnings per share in the range of 38 cents to 46 cents.

Michaels Companies Inc (MIK) plunged 6.8% or $1.64 to $22.67 after the home decor retailer said total net sales in the third-quarter ending on October 29 jumped 5% from a year ago at $1.3 billion.

Comparable store sales in the quarter slumped 2%.

Net income in the quarter slid 0.4% to $76.5 million compared to the $76.8 million and diluted earnings per share were flat at 37 cents from the same quarter last year.

Murphy Oil Corporation (MUR), the oil and gas explorer said that along with its Mexican subsidiary is likely to be awarded fourth phase, round one deep water oil exploration license auction in Mexico with initial exploration period of four years.

McDonald''s Corporation (MCD) slid 11 cents to $119.16 after Reuters reported the fast-food chain seeking to divest its China and Hong Kong stores and raise $1 billion to $2 billion, however, the restaurant chain plans to hold ""a significant minority stake in the business.""

McDonald''s in talk with consortium led by Carlyle Group and China-based conglomerate Citic Group to acquire the outlets.

Roper Technologies Inc (ROP) increased 54 cents to $182.18 after the enterprise software services provider agreed to acquire smaller rival privately held Deltek for $2.8 billion in cash from private equity firm Thoma Bravo LLC.

Toll Brothers Inc (TOL) jumped 3.5% or $1.08 to $31.55 after the luxury residential home maker reported net sales in the fourth-quarter ending in October soared 35.7% from a year ago at $1.9 billion.

Net income in the quarter plummeted 22.3% to $114.4 million or 67 cents per diluted share compared to the $147.2 million or 80 cents per share from the same quarter last year.

Verizon Communications Inc (VZ) increased 1.3% or 62 cents to $50.37 after the wireless communication services provider agreed to divest its 29 data centres in 15 metro areas for about $3.6 billion to Equinix Inc.

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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