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Market Update

Verizon to Acquire AOL for $4.4 B, Gap Drops on Outlook


Author: Mukesh Buch
ticker.com
Last Update: 12:49 PM ET May 12 2015

12:50 PM New York FibroGen net loss widened after revenues declined 9%. Gap said April sales declined 9% and sales in the quarter dropped 3%. Leidos Holdings net climbed 11%. Verizon agreed to acquire AOL for $4.4 billion.

Tollbooth Index slipped 0.3% or 34.39 to 10,664.21.

Earnings Review

Astronics Corporation (ATRO) plunged 6.1% or $4.38 to $67.49 after the aerospace and defense products maker said sales in the first-quarter ending on April 4 soared 14.7% to $161.6 million from a year ago period.

Net income in the quarter surged 42.3% to $10.7 million or 47 cents per diluted share compared to $7.5 million or 33 cents from the same quarter last year.

FibroGen Inc (FGEN) slipped 1.5% or 37 cents to $24.24 after the biopharmaceutical company said total revenues in the first-quarter ending in March declined 8.8% to $16.30 million from a year ago period.

Net loss in the quarter widened to $46.4 million or 78 cents per diluted share compared to $16.2 million or $1.23 from the same quarter last year.

The Gap, Inc (GPS) dropped 3.9% or $1.55 to $38.31 after the apparel retailer said net sales in April declined 9% to $1.21 billion from $1.33 billion in a year ago period.

For the first-quarter, the retailer said net sales slipped 3% to $3.66 billion compared to $3.77 billion in the same period a year ago.

The retailer forecasted earnings per share for the quarter in the range of 55 cents to 56 cents.

Leidos Holdings Inc (LDOS) plunged 8.7% or $3.73 to $39.15 after the national security services provider reported revenues in the first-quarter ending on April 3 dropped 5% to $1.25 billion form a year ago period.

Net income in the quarter climbed 10.8% to $41 million or 55 cents per diluted share compared to $37 million or 47 cents from the same quarter last year.

The company announced a change in its fiscal year end from the Friday nearest the end of January to the Friday nearest the end of December.

Verizon Communications (VZ) slipped 34 cents to $49.46 after the wireless communications services provider agreed to acquire online content provider AOL Inc for $50 per share or about $4.4 billion.

The transaction is expected to close in the next three months.

AOL, Inc stock surged 18.8% to $50.61.

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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