Tuesday was a boring day from a broader-market perspective. The S&P 500 Index inched ahead 0.1%, the Dow Jones Industrial Average improved by a mere 0.2% and the Nasdaq Composite was 0.1% better by day’s end. However, tech saw a lot of movement, including a 7% decline in Nvidia Corporation (NASDAQ:NVDA).
Wednesday is seeing a couple of fireworks on the M&A and earnings fronts. Panera Bread Co (NASDAQ:PNRA) did end up getting a buyout bid, while Walgreens Boots Alliance Inc (NASDAQ:WBA) and A Schulman Inc (NASDAQ:SHLM) were moving on their most recent operational results.
Here’s what you need to know heading into humpday:
Panera Bread Co (PNRA)
Panera Bread is getting bought out after all, and PNRA stock is popping on the news … but considering the rumored suitors, this one feels a little boring.
Starbucks Corporation (NASDAQ:SBUX) and McDonald’s Corporation (NYSE:MCD) were among those bandied about as potential buyers of Panera in a recent report. However, the winner is a lesser-known name, but one that’s still in the coffee game: JAB Holdings.
JAB Holdings — which owns Caribou Coffeel, Peet’s Coffee & Tea, Keurig Green Mountain and Krispy Kreme Doughnuts — is making yet another run on the breakfast table by snapping up PNRA.
The deal will bring JAB some 2,000 Panera locations across the United States that are appealing more and more to the fresh- and health-minded crowd.
JAB Holdings will pay $7.5 billion, or $315 per share for Panera — a 20% premium, though PNRA shares are only up by about 13% in Wednesday’s premarket trade. Still, an open around $310 would put the stock at record highs.
Walgreens Boots Alliance Inc (WBA)
WBA shares were off Wednesday morning after a disappointing fiscal second-quarter earnings report.
The company earned $1.06 billion in Q2, up 14% year-over-year. But on an adjusted basis, profits of $1.36 per share came in a penny short of expectations. Revenues slipped 2.4% to $29.45 billion, which also fell short of estimates for $30.26 million.
There was nothing troubling on the outlook front, however. The company maintained its full-year view of $4.90 to $5.08 in EPS, which has a midpoint near expectations for $5 per share.
Among the bright spots for Walgreens were a 1.5% increase in Retail Pharmacy USA, which improved its Q2 revenues to $21.8 billion on comparable-store sales that perked up by 2.4%. Within that division, pharmacy sales improved 3.7%, on comparable-store prescription growth of 7.9% thanks to Medicare Part D and volume growth from previously announced partnerships.
The big news that everyone wanted to hear about, however, was mostly absent. There was a small reference to the Rite Aid Corporation (NYSE:RAD) acquisition, but no real new news. WBA has pushed the Federal Trade Commission for an answer within the next three months. For now, the deal — which was originally announced in late October 2015 — remains in limbo.
WBA shares were off 1% in Wednesday’s early trade.
A Schulman Inc (SHLM)
Lastly, SHLM shares are getting bid significantly higher after the company unveiled its latest quarterly earnings data.
The plastics supplier had a profitable quarter that included 11 cents in GAAP earnings per share, translating into an adjusted profit of 31 cents per share that beat expectations for 30 cents. However, revenues of $568.7 million fell short of views for $581.4 million.
Looking ahead, the company expects to generate $2.5 billion to $2.6 billion in fiscal 2017 sales, and is maintaining its view of adjusted EBITDA of $225 million to $23 million. Adjusted earnings views came to $2.08 to $2.18 per share, better than the consensus expectation for $2.11. A Schulman’s revenue range was also completely above estimates for $2.45 billion.
The plastics supplier operates worldwide in Farlawn, Ohio, where the company supplies plastic compounds and resins. These are used as raw materials in various markets.
SHLM stock is surging by nearly 6% on Wednesday.
