CPB, TSN, TECD, PBCT, FIF, WLP, CI, JEF Popular Stocks
U.S. stocks rose Monday, as the Dow Jones Industrial Average grew 1.19% to 10441, the S&P 500 rose 1.34% to 1106 and the Nasdaq Composite Index gained 1.31% to 2174.
Campbell Soup Co.’s (NYSE:CPB, $34.29, +$0.17, 0.50%) fiscal first-quarter earnings rose 17% on improved margins and prior-year restructuring and hedging expenses, though soup sales were down absent last year’s product launches. For the quarter ended Nov. 1, Campbell reported a profit of $304 million, or 87 a share, up from $260 million, or 70 cents a share, a year earlier. Excluding items such as prior-year restructuring and commodity-hedging charges, earnings rose to 87 cents a share from 76 cents a share. Revenue decreased 2% to $2.2 billion, as volume fell 4%, partly offset by higher prices and foreign exchange effects.
Tyson Foods Inc. (NYSE:TSN, $12.94, -$0.13, -0.99%) said Monday a hefty impairment charge in its beef business left it with a loss for the fourth quarter. For the three months ending Oct. 3, Tyson lost $455 million, or $1.22 per share. That compares with a profit of $48 million, or 13 cents per share, a year ago. Excluding the impairment charge of $1.50 per share, earnings were 28 cents per share.
Technology distributor Tech Data Corp (NASDAQ:TECD, $43.27, +$0.45, 1.05%) posted better-than-expected quarterly results, helped in part by tighter cost controls, and forecast strong fourth-quarter revenue. For the fourth quarter, the company expects net sales to rise in the low-to-mid single digit range year-over-year. It had reported revenue of $5.71 billion in the year-ago period.
People’s United Financial Inc. (NASDAQ:PBCT, $16.08, -$0.39, -2.37%) agreed to acquire Financial Federal Corp. (NYSE:FIF, $26.87, +$6.32, 30.75%) in a stock and cash deal valued at about $738 million, increasing its presence in the equipment-finance sector. Under the deal, expected to close in the first quarter of next year, Financial Federal shareholders will receive $11.27 and one share of People’s United stock, or $27.74 based on Friday’s close, a 35% premium to Financial Federal’s closing price.
JP Morgan upgraded WellPoint Inc. (NYSE:WLP, $54.42, +$2.28, 4.37%) and Cigna Corp. (NYSE:CI, $32.17, +$2.14, 7.13%) to outperform from neutral, convinced that managed-care stocks can rise now that health-reform options are on the table. The shares currently reflect a “base case” and can build up because underwriting margins are at “levels we haven’t seen in years.” The firm also noted Saturday’s Senate vote to open debate on health reform is “perhaps disappointing to those that were hoping for an early demise for any bill at all,” still, JP Morgan is optimistic for another rise in the shares “once we get through reform.”
Goldman Sachs cut its stock investment rating on Jefferies Group Inc. (NYSE:JEF, $25.13, -$1.44, -5.42%) to sell from neutral, saying the holding company is vulnerable to a slowdown in fixed income, currency and commodities as credit spreads widen, volume growth slows or drops and bid/ask spreads tighten. The firm believes fourth-quarter earnings and revenue will miss estimates, adding it expects Jefferies to underperform peers in next few months.
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