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Market Update

Yahoo to Spin-off Alibaba Stake, Reynolds in $5 B Deal


Author: Mukesh Buch
ticker.com
Last Update: 12:33 PM ET September 29 2015

12:00 PM New York Yahoo! plans to spin off about $22 billion in Alibaba shares that may not be a tax-free deal to shareholders. Ferrellgas Partners net loss widened after revenues declined. IHS profit soared. Reynolds American sells its certain brands to Japan Tobacco for $5 billion.

Tollbooth Index slid 9.21 to 9,983.43.

Earnings Review

AZZ Inc (AZZ) gained 1.7% or 86 cents to $50.40 after the galvanizing services provider said revenues in the second-quarter ending in August soared 10.8% from a year ago to $214.2 million.

Net income in the quarter surged 25.2% to $17.2 million or 67 cents per diluted share compared to $13.8 million or 53 cents from the same quarter last year.

The company reaffirmed previously estimated earnings and revenue guidance between $2.85 and $3.30 and revenues in the range of $900 million to $940 million.

BGC Partners, Inc (BGCP) rose 5 cents to $8.33 after the brokerage company forecasted revenues for the third-quarter in the range of $680 million to $725 million compared to $449.8 million a year ago period.

Cantel Medical Corp (CMN) soared 8.9% or $4.43 to $54.22 after the infection prevention products maker reported total revenues in the fourth-quarter ending in July surged 15% from a year ago to $151.3 million.

Net income in the quarter jumped 24.3% to $13.3 million or 32 cents per diluted share compared to $10.7 million or 26 cents from the same quarter last year.

Ferrellgas Partners, L.P (FGP) dropped 2.2% or 47 cents to $20.32 after the oil and gas services provider said total revenues in the fourth-quarter ending in July declined 4.1% from a year ago to $382.5 million.

Net loss in the quarter widened to $58.2 million or 64 cents per diluted share compared to $47.3 million or 58 cents from the same quarter last year.

IHS Inc (IHS) soared 5.6% or $5.91 to $111.42 after the professional information services provider reported revenues in the third-quarter ending in August jumped 6% from a year ago to $587.9 million.

Net income in the quarter soared 27% to $59.2 million or 86 cents per diluted share compared to $46.5 million or 68 cents from the same quarter last year.

The company forecasted revenues for the year ending in November in the range of $2.30 billion to $2.34 billion.

Reynolds American, Inc (RAI) increased 21 cents to $43.67 after the tobacco products maker agreed to sell its Natural American Spirit international business to Japan-based Japan Tobacco Inc for about $5 billion or 600 billion yen in cash.

The transaction is expected to be complete by early 2016.

SYNNEX Corporation (SNX) decreased 1.1% or 88 cents to $81.62 after the computer peripherals maker said revenues in the third-quarter ending in August declined 5.7% from a year ago to $3.33 billion.

Net income in the quarter jumped 7.1% to $48.2 million or $1.21 per diluted share compared to $45 million or $1.14 from the same quarter last year.

For the fourth quarter, the company forecasted revenues in the range of $3.48 billion to $3.58 billion and earnings per share between $1.74 and $1.79.

Yahoo! Inc (YHOO) soared 4.6% or $1.26 to $28.86 after the internet portal provider said it will proceed with its plans to spin off about $22 billion in Alibaba shares.

Yahoo! said it will go ahead despite a risk of a multi-billion dollar tax bill after the U.S. Internal Revenue Service denied its request to considered tax free deal.

Based on closing price of Monday, Yahoo''s 384 million shares of Alibaba are worth about $22.75 billion.

The company said transaction is expected to complete in the forth-quarter this year.

Yahoo, scheduled to release third-quarter earnings on October 20.

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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