Category: Stock Market News

Fitbit Inc. is set to buy smartwatch maker Pebble for as much as $40 million in a deal that’s barely enough to cover the company’s debt, according to media reports. Tech news site The Information first reported the deal but without specifying an amount, saying Fitbit will require Pebble’s assets, including intellectual property and software. A source told TechCrunch the offer price is between $34 million and $40 million. Representatives from Fitbit and Pebble were not immediately available for comments. Fitbit shares were up 1.9% in thin premarket trading.

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FuelCell Energy Inc.’s stock shed 6.7% toward a record low in premarket trade Thursday, after the struggling fuel cell power plant company said it cut 96 jobs, or 17% of its workforce, in an effort to cut to costs and production amid falling sales. The job cuts were at its production facilities in Torrington, Conn. and at its corporate offices in Danbury, Conn. and remote locations. The company said it has halved production to 25 megawatts a year in order to position for delays in order flow. It expects to take a $3 million charge in fiscal 2017 related to the job cuts. For the fourth quarter, the company expects revenue of $23 million to $25 million, down from $51.5 million a year ago and less than half the FactSet consensus of $52.3 million. “We are streamlining our business and cost structure as we reduce our production levels to meet the backlog we have today while positioning the Company for long term success,” said Chief Executive Chip Bottone. “Our employees are our most valued assets so the decision to reduce our workforce was not made lightly.” The stock has plunged 55% year to date through Wednesday, while the S&P 500 has gained 7.6%.

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Shares of Dollar General Corp. dropped 4.9% in light premarket trade Thursday, after the discount retailer missed fiscal third-quarter profit and sales expectations and provided a downbeat outlook. Earnings for the quarter to Oct. 28 fell to $235.3 million, or 84 cents a share, from $253.3 million, or 86 cents a share, in the same period a year ago. The results include a 5-cents-per-share charge for relocation costs. The FactSet consensus for earnings per share was 93 cents. Revenue rose to $5.32 billion from $5.07 billion, just shy of the FactSet consensus of $5.36 billion, as same-store sales declined 0.1% to miss expectations of a 0.6% rise. The company now expects fiscal 2016 EPS to grow at the low end of its long-term target of 10% to 15%, while the FactSet consensus of $4.49 implies 13.4% growth. “The challenging retail environment that we experienced in the 2016 second quarter continued into the third quarter, contributing to weakness in our same-store sales and our financial performance,” said Chief Executive Todd Vasos. The stock has gained 7.6% year to date through Thursday, while the SPDR S&P Retail ETF has advanced 5.7% and the S&P 500 has climbed 7.6%.

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Parker Hannifin Corp. announced Thursday an agreement to buy Clarcor Inc. in a cash deal that values the maker of filtration products at about $4 billion. Under terms of the deal, Parker will pay $83 for each Clarcor share outstanding, which is an 18% premium to Wednesday’s closing price, and well above the Nov. 25 record close of $70.85. Including the assumption of debt, Parker will pay $4.3 billion. The deal, which is expected to close during the quarter ended September 2017, is expected to add to Parker’s earnings and cash flow, and lead to annual synergies of $140 million. Parker plans to finance the deal with cash and new debt. The stocks remain inactive in premarket trade. Parker’s stock has soared 43% year to date, while Clarcor shares have run up 42% and the S&P 500 has gained 7.6%.

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Sterling jumped to an almost three-month high against the euro on Thursday on hopes the U.K. will retain access to the European Union’s single market after Brexit. The pound rose to as high as €1.1910 from €1.1810 late Wednesday in New York, reaching its highest level against the shared currency since Sept. 9, according to FactSet. Against the dollar, the pound hit an intraday high of $1.2650 from $1.2506 on Wednesday. The gains came after Eurogroup President Jeroen Dijsselbloem reportedly said the EU may find a way to keep the U.K. in the single market after the country leaves the bloc. Additionally, Brexit secretary David Davis said the government may make contributions to the EU budget in return for access to the single market. Losing access to the EU market is a key concern among U.K.-based banks as it would likely mean they’ll lose their key passporting rights that allow them to sell their services seamlessly across the union.

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Shares of Express Inc. plunged 14% in premarket trade Thursday, after the apparel and accessories retailer beat fiscal third-quarter expectations but provided a downbeat outlook for the current quarter. Earnings for the quarter to Oct. 29 fell to $11.6 million, or 15 cents a share, from $26.3 million, or 31 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 13 cents. Revenue declined 7% to $506.1 million from $546.6 million, above the FactSet consensus of $497.1 million. Same-store sales fell 8%, but that beat the FactSet consensus for a 9.6% decline. For the fourth-quarter, the company expects EPS of 26 cents to 30 cents, well below expectations of 54 cents, and same-store sales to decline in the “negative low double digits” percentage range, while the FactSet consensus is for a decline of 7.6%. “We expect the holiday season to remain challenging as mall traffic and a highly promotional retail environment continue to be headwinds,” said Chief Executive David Kornberg. The stock has tumbled 23% year to date through Wednesday, while the SPDR S&P Retail ETF has gained 5.7% and the S&P 500 has climbed 7.6%.

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Walt Disney Co. late Wednesday said it raised its semi-annual cash dividend to 78 cents a share from 71 cents a share, bringing its total dividends in 2016 to $1.49 a share. The entertainment giant plans to hold its annual shareholders meeting on March 8 in Denver. Shares were unchanged after hours following a decline of 0.6% to close at $99.12.

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La-Z-Boy Inc. late Wednesday reported better-than-expected earnings and announced a 10% dividend hike. The furniture company best known for its recliners posted fiscal second-quarter earnings of $20.8 million, or 42 cents a share, compared with $21 million, or 41 cents a share, a year earlier. Revenue slid to $376.6 million from $382.9 million. Analysts surveyed by FactSet had forecast the company to earn 38 cents a share on revenue of $376 million. La-Z-Boy’s board also raised the quarterly dividend to 11 cents from 10 cents. The dividend will be paid on Dec. 15 to shareholders of record on Dec. 9. Shares were flat in late trading after closing down 1.8% to $26.75.

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Shares of Guess Inc. plunged 12% late Wednesday after the clothing retailer reported fiscal third-quarter earnings and sales below Wall Street expectations. Guess said it earned $9.1 million, or 11 cents a share, down 27% from $12.4 million in the third quarter of fiscal 2016. Revenue rose 3% to $536.3 million in the quarter, Guess said. Analysts polled by FactSet had expected per-share earnings of 14 cents on sales of $549 million. Shares had ended the regular trading day down 1.5%.

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Box Inc. reported a narrower loss than expected and raised its revenue guidance for the year Wednesday, sending its stock higher in late trading. The enterprise-software company reported a fiscal third-quarter net loss of $38.2 million, or 30 cents a share, on sales of $102.8 million, after losing $55.1 million in the same quarter a year ago. After adjustments for stock-based compensation and other factors, Box claimed a loss of 14 cents a share, after reporting a loss of 31 cents a share a year ago. Analysts expected Box to report an adjusted loss of 19 cents a share on sales of $100.6 million, according to FactSet. The outperformance led Box to increase its guidance for the full year, with the company now predicting a revenue range of $397 million to $398 million after earlier projecting $394 million to $396 million. Box shares gained more than 3% in late trading, rising to near $15.70 after closing with a 0.5% decline at $15.22.

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