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STOCK MOVERS

U.S. Movers: Kimberly Clark, Rockwell Collins, TD Ameritrade, T-Mobile VFC


Author: Mukesh Buch
ticker.com
Last Update: 12:56 PM ET October 24 2016

12:50 PM New York ACCO net plunged. Eagle Materials net doubled. Kimberly Clark lowered fiscal outlook. Philips net surged. Rockwell Collins agreed to acquire B/E Aerospace for about $6.4 billion. TD Ameritrade agreed to buy Scottrade for $4 billion.

Tollbooth Index edged up 78.19 or 0.7% to 10,957.62.

Earnings Review

ACCO Brands Corporation (ACCO) surged 19.4% or $1.77 to $10.88 after the school, office and consumer products provider said net sales in third-quarter ending in September jumped 4% from a year ago to $431.3 million.

Net income in the quarter plunged 30% to $22.7 million or 21 cents per diluted share compared to the $32.6 million or 30 cents per share from the same quarter last year.

ACCO Brands reaffirmed its sales forecast in the year to increase in low single-digits and diluted earnings per share in the range of 84 cents to 86 cents and free cash flow of about$145 million.

Separately, the company agreed to acquire European office products rival Esselte Group Holdings AB from private equity firm J.W. Childs for $333 million in cash.

The transaction is expected to be completed in early 2017.

Eagle Materials, Inc (EXP) gained 1.8% or $1.42 to $78.80 after the construction products supplier said revenues in second-quarter ending in September rose 1% from a year ago to $332.7 million.

Net income in the quarter double to $60.2 million or $1.25 per diluted share compared to the $29.8 million or 59 cents per share from the same quarter last year.

Kimberly Clark Corp (KMB) slumped 3.1% or $3.70 to $115.88 after the sanitary products maker reported net sales in third-quarter ending in September dropped 2.6% from a year ago to $4.6 billion.

Net income in the quarter plunged 6.4% to $550 million or $1.52 per diluted share compared to the $517 million or $1.41 per share from the same quarter last year.

Kimberly Clark lowered diluted earnings per share in fiscal 2016 between $5.92 and $6.05 compared to the earlier estimated range of $5.92 to $6.15 and sales growth of 2% from the previous guidance of 3% to 5%.

Koninklijke Philips NV (PHG) jumped 4.1% or $1.15 to $29.58 after the Netherlands-focused healthcare and medical equipment maker said sales in the third-quarter ending in September increased 1% from a year ago to 5.90 billion.

Net income in the quarter surged 18.2% from a year ago to 383 million compared to the 324 million and diluted earnings per share increased to 0.40 from 0.34.

Rockwell Collins, Inc (ROK) plunged 6.4% or $5.43 to $79.05 after the aerospace and defense products maker reported total sales in the fourth-quarter ending in September advanced 4% from a year ago to $1.4 billion.

Net income in the quarter soared 13% to $208 million or $1.58 per diluted share compared to the $184 million or $1.38 per share from the same quarter last year.

The aerospace products provider estimated revenues in the year between $5.3 billion and $5.4 billion and operating margin of about 21% and cash flow from operations in the range of $600 million to $700 million.

Separately, Rockwell Collins agreed to acquire the largest supplier of aircraft-cabin equipment B/E Aerospace Inc for about $6.4 billion in cash and stock, in addition to the assumption of $1.9 billion in net debt.

Under the terms, investors of B/E Aerospace will get $34.10 in cash and $27.90 in shares of Rockwell Collins common stock.

The transaction is expected to close in the spring of 2017.

TD Ameritrade Holding Corp (AMTD) dropped 3.2% or $1.19 to $35.89 after the brokerage and financial services provider said net revenues in the fourth-quarter ending in September slid 0.2% from a year ago to $829 million.

Net income in the quarter slumped 13% to $185 million or 35 cents per diluted share compared to the $216 million or 40 cents per share from the same quarter last year.

The brokerage services provider forecasted diluted earnings per share in the full-year in the range of $1.50 to $1.80.

Separately, TD Ameritrade and its Canada-based parent Toronto-Dominion Bank agreed to acquire Scottrade Financial Services Inc for $4 billion in a cash and stock deal.

The transaction is expected to close by the end of September 2017.

T-Mobile Us Inc (PCS) traded unchanged at $11.84 after the mobile services provider stated total revenues in third-quarter ending in September soared 17.8% from a year ago to $9.2 billion.

Net income in the quarter surged 165% to $366 million or 42 cents per diluted share compared to the $138 million or 15 cents per share from the same quarter last year.

VF Corporation (VFC) decreased 2.7% or $146 to $53.27 after the branded lifestyle apparel, footwear and accessories maker said revenues in third-quarter ending in September fell 1% from a year ago to $3.5 billion.

Net income in the quarter jumped 8% to $498.5 million or $1.19 per diluted share compared to the $459.9 million or $1.07 per share 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