Posts Tagged ‘NYSE’

Emdeon Inc. (EM) continues to prospers on takeover by Blackstone

Monday, August 8th, 2011

Late last week, Emdeon Inc. (NYSE: EM) shares climbed13.5% to $18.44 after the healthcare information-technology provider agreed to be bought by private-equity firm Blackstone Group. Opening the week today, Emdeon share prices have relented slightly, still hovering over the $17.00 mark.

A news release published early August 4 said the Nashville-based Emdeon, a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, had entered into a definitive merger agreement with Blackstone, under which this Blackstone fund will acquire a controlling interest in Emdeon in a transaction valued at approximately $3 billion that will result in Emdeon becoming a private company. Hellman Friedman will maintain a significant minority equity interest in Emdeon.

Under the terms of the merger agreement, holders of Emdeon common stock will receive $19.00 per share in cash. Emdeon’s Board of Directors has unanimously approved the merger agreement and is recommending that Emdeon’s stockholders adopt the merger agreement.

Emdeon CEO George Lazenby was quoted in the release as saying, “This transaction provides for a great return for our investors. We are excited about the opportunity to move forward with two excellent investors in Blackstone and Hellman Friedman. They each have an in-depth understanding of our business and industry, and will be tremendous partners as we continue to pursue our strategy of making healthcare efficient.

Lazenby concluded, “We are looking forward to building upon our leadership position in healthcare information technology and services, made possible by the continued support of our customers and the dedication and commitment of our employees.”

Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the U.S.healthcare system. Emdeon’s product and service offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter.

MasterCard Inc. (MA) charges ahead on Q2 profit

Wednesday, August 3rd, 2011

MasterCard Inc. (NYSE: MA) shares rose 12.3% to $335.13 after the payments-network reported second-quarter profit that topped market expectations. Volume for the stock crowded 4.3 million shares, better than four times its daily average.

A news release issued August 3 noted that the company reported net income of $608 million, up 32.8%, and earnings per diluted share of $4.76, up 36.4%, in each case versus the year-ago period.

Net revenue for the second quarter of 2011 was $1.7 billion, a 22.1% increase versus the same period in 2010. On a constant currency basis, net revenue increased 18.0%.

“Solid global performance, including strong increases in volume and processed transactions, fueled double-digit revenue growth this quarter,” said MasterCard CEO Ajay Banga in the same release. “While payment volumes have risen across our base customers, were also seeing new business such as the portfolio conversions of SunTrust and Sovereign, as well as new processing relationships in the Netherlands and in Brazil, contribute to growth.”

Banga added, “During the quarter, work continued in the mobile commerce category highlighted by an agreement with Google and multiple partners to launch the Google Wallet, as well as our alliance with Isis, in the U.S. Additionally, the previously announced Orange and Barclaycard contactless mobile payment service became available to U.K. consumers in May. Other notable agreements we executed include a commercial alliance with China Union Pay to enable its cards for cross-border e-Commerce, and a new, multi-product agreement with Swedbank in the Nordic and Baltic regions.”

MasterCard is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.

Herbalife Ltd. (HLF) strengthens on announcing solid bottom line

Tuesday, August 2nd, 2011

Herbalife Ltd. (NYSE: HLF) shares climbed 7.5% to $59.68 after the nutritional-supplement seller projected third-quarter earnings that exceeded analysts’ estimates. Volume for the stock amounted to 6.2 million shares, towering over an all-day average of 1.8 million.

A news release out August 1 announced that second quarter net sales increased 27.7% and local currency net sales increased 19.9% compared to the same time period in 2010. Net income for the quarter of $111.2 million, or $0.88 per diluted share compares to 2010 second-quarter net income and EPS of $82.2 million and $0.65, respectively.

“We believe that we are just getting started,” the release quoted Michael O. Johnson, Herbalife CEO. “Eight consecutive quarters of growth in the average number of sales leaders ordering illustrates the engagement of the distributors and the strong foundation being built as Herbalife helps consumers tackle the global issues of obesity.”

For the quarter ended June 30, 2011, the company generated cash flow from operations of $142.7 million, an increase of 71.5% compared to the second quarter 2010, paid dividends of $23.9 million, invested $16.1 million in capital expenditures, and repurchased $98.8 million in common shares related to its share repurchase program.

Based in Los Angeles, Herbalife Ltd. is a global network marketing company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle.

Radian Group Inc. (NYSE: RDN) collects black ink, stock spikes

Tuesday, August 2nd, 2011

Radian Group Inc. (NYSE: RDN) shares jumped 25% to $3.85 after the mortgage insurer reported swinging to a profit in the second quarter. Volume for the stock closed in on 7.5 million shares by 11 a.m. ET, towering over an all-day average of below four million.

The company put out a news release August 2, announcing that net income for the quarter ended June 30, 2011 was $137.1 million, or $1.03 per diluted share, which included combined gains from the change in fair value of derivatives and other financial instruments of $193.8 million. This compares to a net loss of $475.1 million, or $4.31 per diluted share, for the prior-year quarter, which included combined net losses from the change in fair value of derivatives and other financial instruments of $587.8 million. Book value per share at June 30, 2011, was $8.48.

In the same release, Radian CEO S.A. Ibrahim noted, “As we face an uncertain U.S. economy and housing market, we believe that Radians risk-to-capital ratio of 19.8 to 1 and the financial flexibility of our holding company cash position provide a competitive advantage for our mortgage insurance business. We were pleased with the continued drop in mortgage insurance delinquencies in the quarter and another period of operating profitability for our financial guaranty business.”

Radian Group Inc., headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-down-payment mortgages in the secondary market.

Skechers USA Inc. (NYSE: SKX) sprints ahead despite Q2 losses

Thursday, July 28th, 2011

Skechers USA Inc. (NYSE: SKX) shares climbed 20.2% to $17.18 after the sneaker maker late Wednesday reported larger-than-anticipated second-quarter losses. Volume for the stock topped 2.7 million shares, surpassing a daily average of 1.1 million.

A news release out July 27 showed that second-quarter 2011 net sales were $434.4 million compared to $504.9 million for the second quarter of 2010. Second-quarter 2011 net loss was $29.9 million or a loss of $0.62 per diluted share based on 48,341,000 weighted average common shares outstanding compared to net earnings of $40.2 million or earnings of $0.82 per diluted share based on 49,130,000 weighted average common shares outstanding for the second quarter of 2010.

“Second-quarter results were impacted by several factors,” the release quoted COO David Weinberg as saying. “First, we were up against a record second quarter in 2010, and we aggressively reduced our excess toning inventory during the second quarter by selling two million pairs of our original Shape-ups for a loss of $21.0 million. We also recorded a $4.4 million reserve for additional product, which we believe reflects net realizable value. We made a decision to accelerate the clearance on early generation Shape-ups product in order to eliminate the overhang of excess inventory.

“We believe this will expand the sales of our new toning and performance product, which are showing positive results at retail.” Weinberg  concluded.

Gross profit for the second quarter of 2011 was $143.3 million or 33%of net sales compared to $237.6 million or 47.1 percent of net sales in the second quarter of last year.

Skechers USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the Skechers name, as well as under several uniquely branded names.