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Market Update

Valeant to Buy Synergetics, AeroVironment Plunges 11%


Author: Mukesh Buch
ticker.com
Last Update: 12:36 PM ET September 02 2015

12:25 PM New York AeroVironment net loss widened. Ambarella net more than doubled. H & R Block announced a stock buyback plan of as much as $3.5 billion through June 2019. Navistar sales declined 11%. Valeant agreed to acquire surgical devices maker Synergetics for $6.50 a share.

Tollbooth Index gained 67.07 or 0.7% to 10,114.68.

Earnings Review

AeroVironment, Inc. (AVAV) plunged 11.6% or $2.72 to $20.66 after the aerospace and defense products maker said revenues in the first-quarter ending on August 1 plunged 37.8% from a year ago to $26.6 million.

Net loss in the quarter widened to $6.98 million or 30 cents per diluted share compared to $3.61 million or 16 cents from the same quarter last year.

Ambarella Inc (AMBA) tumbled 15.3% or $13.64 to $75.92 after the high-definition video chips maker stated revenues in the second-quarter ending in July soared 79.5% from a year ago to $84.2 million.

Net income in the quarter surged 148.4% to $23.1 million or 68 cents per diluted share compared to $9.3 million or 29 cents from the same quarter last year.

G-III Apparel Group, Ltd (GIII) slumped 3.8% or $2.54 to $64.37 after the apparel maker said net sales in the second-quarter ending in July surged 12% from a year ago to $474 million.

Net income in the quarter doubled to $12.5 million or 27 cents per diluted share compared to $6.2 million or 14 cents from the same quarter last year.

The company forecasted net sales for the year of about $2.40 billion and lifted net income estimate between $129 million and $134 million and diluted earnings per share in the range of $2.78 to $2.88 compared to the previous estimate of net income between $123 million and $128 million and diluted earnings per share in the range of $2.66 to $2.76.

H & R Block Inc (HRB) jumped 6.7% or $2.22 to $35.17 after the tax preparation services provider reported revenues in the first-quarter ending in July increased 3.1% from a year ago to $137.7 million.

Net loss in the quarter widened to $99.7 million or 36 cents per diluted share compared to $116.2 million or 42 cents from the same quarter last year.

The company said it plans to buy back its shares for as much as $3.5 billion effective through June 2019, including $1.5 billion shares in a ""modified Dutch auction"" tender offer at a price of $32.25 to $37 per share.

Navistar International Corp (NAV) declined 8.8% or $1.53 to $15.83 after the military trucks and vehicles maker said revenues in the third-quarter ending in July plummeted 10.6% from a year ago to $2.54 million.

Net loss in the quarter widened to $28 million or 34 cents per diluted share compared to $2 million or 2 cents from the same quarter last year.

Tupperware Brands Corporation (TUP) jumped 4.8% or $2.35 to $51.40 after the home goods maker estimated current fiscal year earnings per share will be lower by 26 cents per share in 2014.

The company schedule to release its third-quarter results on October 20.

Valeant Pharmaceuticals Intl Inc (VRX) gained 1.3% or $2.95 to $227 after the pharmaceutical and medical device maker agreed to acquire smaller rival and precision surgical devices maker Synergetics USA, Inc. for $6.50 per share in cash.

The $165 million transaction is expected to close in the fourth quarter of this 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