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Market Update

Visa Agrees to Acquire Visa Europe, GE Completes Alstom Units Purchase


Author: Mukesh Buch
ticker.com
Last Update: 12:50 PM ET November 02 2015

12:40 PM New York Visa profit soared and agreed to acquire Visa Europe for $23.4 billion. GE completed acquisition of two units from Alstom for $10.6 billion. Cardinal Health net and revenues soared. Clorox net surged. Estee Lauder jumped on positive outlook. Ecolab net tumbled. Sysco net plunged.

Tollbooth Index edged down 0.56 to 10,949.46.

Earnings Review

Cardinal Health Inc (CAH) soared 4.4% or $3.65 to $85.93 after the healthcare services provider said revenues in the first-quarter ending in September surged 17% from a year ago to $28.1 billion.

Net income in the quarter jumped 44% to $383 million or $1.15 per diluted share compared to $266 million or 78 cents per share from the same quarter last year.

Cardinal Health lifted earnings per share estimate for the fiscal 2016 to $5.15 to $5.35 from the previous guidance between $4.85 and $5.05.

Clorox Co (CLX) advanced 3.9% or $4.71 to $126.65 after the household products maker stated sales in the first-quarter ending in September rose 3% from a year ago to $1.39 billion.

Net income in the quarter soared 192% to $172 million or $1.31 per diluted share compared to $90 million or 68 cents per share from the same quarter last year.

Estee Lauder Companies Inc (EL) soared 6.9% or $5.56 to $86.20 after the makeup, fragrance and hair care products maker reported revenues in the first-quarter ending in September jumped 8% from a year ago to $2.83 billion.

Net income in the quarter surged 36% to $309.3 million or 82 cents per diluted share compared to $228.1 million or 59 cents per share from the same quarter last year.

The company forecasted net sales for the second-quarter to increase between 6% and 7% and diluted earnings per share between $1.04 and $1.08.

For the year, Estee Lauder estimated net sales to grow between 8% and 10% and diluted earnings per share in the range of $3.10 to $3.17.

Ecolab Inc (ECL) declined 4% or $4.85 to $115.50 after the water, hygiene and energy services provider reported revenues in the third-quarter ending in September slumped 6.5% from a year ago to $3.45 billion.

Net income in the quarter tumbled 29% to $257.8 million or 86 cents per diluted share compared to $364.9 million or $1.19 per share from the same quarter last year.

Ecolab forecasted earnings per share for the fourth-quarter in the range of $1.20 to $1.30, an increase of 8% from in the same period of a year ago.

For the year, the company lifted earnings per share estimate between $4.35 and $4.45 per share from the earlier estimated range of $4.45 to $4.60.

General Electric Company (GE) rose 28 cents to $29.20 after the diversified conglomerate agreed to acquire power and grid businesses of France-based rail transport systems operator Alstom for about $10.6 billion or 9.7 billion.

Today, GE said it completed the sale of its rail signaling unit to Alstom for about $800 million.

Loews Corporation (L) gained 1.7% or 62 cents to $37.05 after the property and casualty insurance provider total revenues in the third-quarter ending in September plunged 9.9% from a year ago to $3.17 billion.

Net income in the quarter tumbled 12.5% to $182 million or 50 cents per diluted share compared to $208 million or 55 cents per share from the same quarter last year.

Sysco Corporation (SYS) slipped 1.8% or 73 cents to $40.52 after the food products distributor said revenues in the first-quarter ending on September 26 rose 0.9% from a year ago to $12.6 billion.

Net income in the quarter plunged 12.3% to $244.4 million or 41 cents per diluted share compared to $278.8 million or 47 cents per share from the same quarter last year.

Visa Inc (V) dropped 2.9% or $2.32 to $75.26 after the credit cards services provider reported revenues in the fourth-quarter ending in September jumped 10.5% from a year ago to $3.57 billion.

Net income in the quarter soared 41.1% to $1.51 billion or 62 cents per diluted share compared to $1.07 billion or 43 cents per share from the same quarter last year.

Separately today, Visa agreed to acquire its European unit Visa Europe for about $23.4 billion or 21.2 billion in a cash-and-stock.

The transaction is expected to close in the third-quarter of fiscal 2016.

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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