Category: Stock Market News

Trinity Biotech plc shares dropped as much as 50% in premarket trade Tuesday after the company said it withdrew its device application with the Food and Drug Administration on the regulator’s advice. As part of the withdrawal, Trinity also said it would reduce spending by nearly 85%, to $1.5 million from $9 million a year, and that it would close a Swedish facility, eliminating 40 jobs. The Dublin-based developer of diagnostic products said that while it was confident in the Meritas Troponin-I Test and Meritas Point-of-Care Analyzer, it was not sure the point-of-care device could meet the FDA’s standard requiring equivalent performance to the most recently cleared lab-based Troponin product. Trinity said it would spend the next nine to 12 months determining the best move forward for the platform, and would move the technology from the Swedish facility to an existing one in Ireland. Trinity shares rose 15.1% over the last three months, compared with a 2.8% rise in the S&P 500 .

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TransDigm Group Inc. said Tuesday that it is seeking an additional $650 million term loan, tied to its consideration of a special cash dividend in the range of $1.1 billion and $1.5 billion. The timing and aggregate amount of the dividend is yet to be determined, nor is the dividend or financing definite. The airplane components producer also reconfirmed its guidance. Sales are expected to be at or slightly below the low end of the $3.17 billion to $3.19 billion range. And earnings before interest, taxes, depreciation and amortization are expected to be at or slightly above the midpoint of the range of $1.48 billion and $1.50 billion. The company will announce fiscal third-quarter results on Nov. 14. TransDigm shares are inactive in premarket trading and up 33.2% for the past year. The S&P 500 Index is up 10.8% for the last 12 months.

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Newell Brands Inc. said Tuesday it is transforming from a holding company to an operating company as part of a strategic review following the completion of the merger of Newell Rubbermaid and Jarden. The company said it will shrink its existing 32 business units into 16 operating divisions, and create a new global e-commerce division. The company will sell off assets equal to about 10% of its portfolio, including most of its tools business, as well as the heaters, humidifiers and fans businesses within its consumer division. The businesses for sale had total 2015 sales of about $1.5 billion. “The combination of Newell Rubbermaid and Jarden has created a unique platform for transformative value creation and the actions we are taking to reshape the company will unlock this opportunity, bringing greater investment and growth to our highest potential categories like writing, home fragrance, baby, food storage & preparation, appliances & cookware, and outdoor & recreation,”
Newell President Mark Tarchetti said in a statement. The company is aiming to sell the assets by the first half of 2017 and will use the proceeds to pay down debt. Shares were not yet active in premarket trade, but are up 16% in the year so far, while the S&P 500 has gained about 6%.

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Shares of Summit Therapeutics Plc surged more than 50% in premarket trade Tuesday, after the company said it has entered an exclusive license and collaboration agreement with Sarepta Therapeutics Inc. for the European rights to Summit’s utrophin modulator pipeline for the treatment of Duchenne Muscular Dystrophy. As part of the deal, Sarepta and Summit will share research and development costs and Sarepta will also get an option to license Latin American rights. Summit will receive $40 million upfront and up to $522 million plus royalties if certain milestones are achieved. Utrophin modulation is a possible treatment for patients with the muscle-wasting disease, DMD. Sarepta recently won the first approval from the Food and Drugs Administration for a drug to treat the disease. Sarepta shares were up 1.7% premarket, and have gained 58% in the year so far, while the S&P 500 has gained 6%.

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Shares of Darden Restaurants Inc. saw a nearly 5% pop after the company reported fiscal first-quarter earnings that beat expectations and raised its fiscal year guidance above consensus. Net earnings for the quarter came in at $110.2 million, or 87 cents per share, compared with earnings of $86.4 million, or 67 cents per share during the same period a year ago. Adjusted earnings per share were 88 cents, which beat the 82 cents FactSet consensus. Sales for the Olive Garden and Longhorn Steakhouse operator hit $1.71 billion, which was an increase compared with last year’s $1.69 billion, but just below the FactSet consensus of $1.72 billion. And same-restaurant sales were up 1.3%, below FactSet’s expectations of 1.5%. For fiscal 2017 Darden still expects same-restaurant sales to increase 1% to 2%, but the company raised its earnings per share outlook to a $3.87 to $3.97 range, from a $3.80 to $3.90 range. The FactSet consensus is $3.87. Darden shares have declined 3.6% in the year to date, underperforming the S&P 500 Index , which is up 5.7%.

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Banks based in the U.K. will get no special treatment in the country’s negotiations to leave the European Union, Bloomberg reported late Monday, citing three senior figures in the British government. Britain’s financial-services sector is concerned it may lose its “passporting” rights — which ease access to business in the EU’s member states — in the Brexit deal. But Prime Minister Theresa May’s government will not give priority to protecting the sector in the country’s exit, and nor will it push for an interim agreement with the EU to support a transition for the sector, Bloomberg reported.

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The British pound on Tuesday dropped sharply to $1.2764, down from $1.2858 late Monday in New York, as worries about Brexit continued to weigh on the currency. The pound is trading at its lowest levels against the dollar since 1985, according to FactSet data. It has undercut its lows reached in July, shortly after the U.K.’s referendum on European Union membership. Some analysts have said the Conservative Party’s conference this week is turning into a sell for the pound, as Prime Minister Theresa May signaled that her government will focus in negotiations on issues that imply a departure from the EU’s single market. The British leader said the priority will be on immigration and U.K. sovereignty. Banks based in Britain will get no special treatment, senior figures in the administration told Bloomberg, casting more doubt on the future of the U.K.’s financial services industry.

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Cypress Semiconductor Corp. said late Monday said it plans to eliminate about 500 workers worldwide in a move to restructure towards more high-growth areas of its business, according to a Securities and Exchange Commission filing. Cypress has just under 6,300 employees, according to FactSet data. The mixed-signal integrated circuit maker said it plans to pay out $40 million to $50 million in severance over the third and fourth quarters. Shares of Cypress were down less than 0.1% at $12 after hours.

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U.S. stocks closed lower Monday on renewed concerns about the U.K.’s exit from the European Union and Deutsche Bank’s liquidity. The Dow Jones Industrial Average fell 54.30 points, or 0.3%, to close at 18,253.85, weighed down by Travelers Co and Procter & Gamble Co. . The S&P 500 Index declined 7.07 points, or 0.3%, to finish at 2,161.20, with the real estate and utilities sectors leading the index lower. The Nasdaq Composite index closed down 11.13 points, or 0.2%, at 5,300.87.

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Netflix Inc. shares climbed more than 4% on Monday, following rumors on Friday and over the weekend the streaming giant could be a acquisition target for Walt Disney Co. . Disney has been rumored to be on the prowl for new business to add to the company’s media and entertainment offerings. Last week Disney emerged as a potential player in the bid for Twitter Inc. . Though the timing for a possible Netflix buy would be tough to call, Baird analyst William Power wrote in a note to clients Netflix has been the subject of “recent M&A rumors. Whether Disney, Apple or someone else, Netflix could become a target.” Analysts have said it would make sense for Disney to look to move further into streaming video, especially sports content. A Spokeswoman for Disney was not available for comment and Netflix declined to comment. Shares of Disney are down nearly 12% in the year to date, while Netflix shares are down more than 10%, both have underperformed the S&P 500 Index , which is up more than 5%.

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