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Market Update

Shire Rejected $46.5 Billion Offer from AbbVie; Oracle, Tibco Plunge


Author: Mukesh Buch
ticker.com
Last Update: 12:34 PM ET June 20 2014

12:25 PM New York – CarMax net and revenue climbed. Darden Restaurants profit plunged 35%. Oracle net dropped 4% but revenue rose 3%. Tibco Software net tumbled 82%.

AbbVie Inc (ABBV) slid 30 cents to $53.89 after the research-based pharmaceuticals company’s takeover offer of $46.5 billion or £27.3 billion was rejected by Dublin, Ireland-based drug-maker Shire Plc. Shire said the unsolicited offer fundamentally undervalues the company and its prospects.

CarMax, Inc (KMX) surged 15.9% or $7.20 to $52.48 after the used car superstores operator reported total sales in the first-quarter ending in May climbed 13.3% to $3.75 billion. Comparable store sales in the quarter increased 3.4%.

Net earnings in the quarter soared 15.7% to $169.7 million or 76 cents a diluted share compared to $146.7 million or 64 cents.

The company said total used unit sales jumped 9.8% to 150,528 units and new vehicles sales surged 33.2% to 2,597 units and wholesale vehicles sales climbed 9.9% to 97,098 units. CarMax Auto Finance income increased 8.7% to $94.6 million.

Darden Restaurants, Inc (DRI) declined 3.3% or $1.66 to $47.86 after the full-service restaurant operator said total sales in the fourth-quarter ending on May 25 jumped 3.8% to $1.65 billion.

In the fourth quarter, U.S. same-restaurant sales increased 2.4% at LongHorn Steakhouse and sales at Specialty Restaurant Group rose 2%. Sales at Olive Garden declined 3.5% and fell 5.6% at Red Lobster.

Net earnings in the quarter plunged 35% to $86.5 million or 65 cents a diluted share compared to $133.2 million or $1.01.

Oracle Corporation (ORCL) declined 5.6% or $2.40 to $40.11 after the enterprise software developer reported total revenue in the fourth-quarter ending in May increased 3% to $11.3 billion.

Net income in the quarter dropped 4% to $3.65 billion compared to $3.81 billion and diluted earnings per share were flat at 80 cents from a year ago period.

Oracle said revenues from software and cloud segment surged 79% and software license updates and product support revenue climbed 42%. Hardware systems segment revenues jumped 13% and services revenues increased 8%.

Separately, Oracle agreed to acquire LiveLOOK, a provider of real-time, visual collaboration technology for co-browsing and screen sharing.

Tibco Software Inc (TIBX) plummeted 7.3% or $1.53 to $19.29 after the infrastructure software developer said total revenue in the second-quarter ending on June 1 rose 2.6% to $252.3 million.

Net income in the quarter tumbled 82.2% to $1.55 million or 1 cent a diluted share compared to $8.71 million or 5 cents.

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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