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Market Update

Staples Agrees to Acquire Office Depot, Disney Net Jumps


Author: Mukesh Buch
ticker.com
Last Update: 12:17 PM ET February 04 2015

12:10 PM New York – Cognizant profit jumped 12%. GM net climbed 22%. Humana net swung to profit after revenues surged 21%. Merck net surged but revenues plunged 7%. Ralph Lauren net plunged 9%. Staples agreed to acquire Office Depot. Whirlpool net tumbled 55%. Walt Disney net Climbed.

Tollbooth Index gained 0.2% or 19.87 to 10,204.50.

Earnings Review

Cognizant Technology Solutions Corp (CTSH) climbed 4.4% or $2.41 to $57.49 after the information technology company said revenues in the fourth-quarter ending in December soared 16.6% to $2.74 billion a year ago period.

Net income in the quarter jumped 11.9% to $362.9 million or 59 cents a diluted share compared to $324.3 billion or 53 cents from the same quarter last year.

General Motors Company (GM) jumped 2.9% or 99 cents to $34.97 after the automobile company reported revenues in the fourth-quarter ending in December fell 2.2% to $39.6 billion a year ago period.

Net income in the quarter climbed 22.2% to $1.1 billion or 66 cents a diluted share compared to $0.9 billion or 57 cents from the same quarter last year.

For the year, the company’s total automotive liquidity dropped to $37.2 billion from $38.3 billion and cash and marketable securities totalled to $25.2 billion compared to $27.9 billion a year ago.

Humana Inc (HUM) gained 1.8% or $2.65 to $151.38 after the health insurance provider stated total revenues in the fourth-quarter ending in December surged 21% to $12.33 billion a year ago period.

Net in the quarter swung to profit $145 million or 94 cents a diluted share compared to a loss of $30 million or 19 cents from the same quarter last year.

Level 3 Communications, Inc (LVLT) jumped 4.2% or $2.17 to $53.56 after the communications service provider said revenues in the fourth-quarter ending in December climbed 19.4% to $1.91 billion a year ago period.

Net income in the quarter soared 371.4% to $66 million or 22 cents a diluted share compared to $14 million or 6 cents from the same quarter last year.

Merck & Co., Inc (MRK) declined 4.1% or $2.50 to $58.51 after the pharmaceutical company reported sales in the fourth-quarter ending in December plunged 7% to $10.48 billion a year ago period.

Net income in the quarter jumped 837.2% to $7.32 billion or $2.54 a diluted share compared to $781 million or 26 cents from the same quarter last year.

The company’s pharmaceutical sales dropped 4% to $9.37 billion while sales animal health segment rose 2% to $885 million.

Kohl''s Corporation (KSS) climbed 5.1% or $3.19 to $66.12 after the department store operator reported fourth quarter comparable sales of 3.7% and updated its fiscal 2014 diluted earnings per share guidance to between $4.20 and $4.22.

The retailer will release detailed earnings report on February 26.

Ralph Lauren Corp (RL) tumbled 14.9% or $25.59 to $145.24 after the apparel and accessories retailer stated net revenues in the fourth-quarter ending in December rose 1% to $2.03 billion a year ago period.

Net income in the quarter plunged 9.3% to $215 million or $2.41 a diluted share compared to $237 million or $2.57 from the same quarter last year.

Staples, Inc (SPLS) plunged 10.7% or $2.02 to $16.99 after the office product retailer agreed to acquire its rival Office Depot Inc for about $6.3 billion in a cash and stock.

In last September, Staples began discussions to acquire Office Depot for $7.25 per share in cash and 0.2188 of its shares.

The transaction is expected to close by the end of this year and has agreed to pay deal termination fee of $250 million.

Whirlpool Corporation (WHR) soared 6.1% or $12.19 to $213.25 after the home appliance maker said net sales in the fourth-quarter ending in December soared 17.9% to $6 billion a year ago period.

Net income in the quarter tumbled 55.2% to $81 million or $1.02 a diluted share compared to $181 million or $2.26 from the same quarter last year.

Walt Disney Co (DIS) jumped 8% or $7.57 to $101.68 after the media conglomerate reported revenue in the first-quarter ending in December climbed 9% to $13.39 billion from a year ago period.

Net income in the quarter climbed 18.5% to $2.18 billion or $1.27 a diluted share compared to $1.84 billion or $1.03 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