Most major U.S. indices rose Wednesday, with financial stocks leading the way, popping 1.3%. The S&P 500 Index gained 0.4%, the Dow Jones Industrial Average surged 0.3% and the Nasdaq Composite was 1.2% better by day’s end.
Several companies made progress Wednesday, including Advanced Accelerator Application SA(ADR) (NASDAQ:AAAP), Jabil Inc (NYSE:JBL) and Medtronic Plc. (NYSE:MDT).
Advanced Accelerator Application SA(ADR) (AAAP)
Advanced Accelerator Application may soon be acquired by Novartis AG (ADR) (NYSE:NVS).
Novartis is reportedly considering buying the radiopharmaceutical company, approaching AAA about a deal and initial talks have been held. Sources close to the matter reported this, but asked to be kept anonymous.
The move would bolster Novartis’ portfolio and it may be the first of multiple acquisitions to expand its offerings. No deal has been reached as of yet, and the move could still break down.
AAAP manufactures radiopharmaceuticals — which are radioactive drugs — to treat illnesses such as cancer. It has been around since 2002, and it now has 21 production and research and development sites, employing more than 530 in 13 countries.
AAAP shares surged 9.4% after hours Wednesday.
Jabil Inc (JBL)
Jabil posted its quarterly earnings results Wednesday.
The electronics manufacturer posted impressive results in its fourth quarter, as net income was $46 million, or $8 million higher than the year-ago period.
Jabil’s bottom line rose to $117.15 million, or 64 cents per share. This was higher than the $52.91 million, or 28 cents per share, in last year’s fourth quarter, and it topped expectations of 61 cents per share.
Revenue rose 13.3% year-over-year from $4.43 billion to $5.02 billion. For the full fiscal year, Jabil posted revenue of $19.1 billion, ahead of the previous year’s figure of $18.4 billion.
“I’m very pleased with our team’s performance throughout the fiscal year,” CEO Mark Mondello stated in the earnings release. “As we described at the outset of the year, success would include solid revenue and core earnings growth coupled with strong cash flow generation. Clearly, we delivered on these strategic objectives.”
JBL stock fell 0.5% after the bell Wednesday.
Medtronic plc. (MDT)
It was a good day for Medtronic as one of the company’s products was approved.
The US Food and Drug Administration (FDA) announced that it has approved HeartWare HVAD System, which is an advanced heart failure (HF) therapy for patients who are not qualified for heart transplants.
It was approved following an Endurance trial and its supplemental study, which found it was safe and effective in almost 1,000 destination therapy patients with advanced, refractory left ventricular HF.
The system is a left ventricular assist device (LVAD) that helps patients by pumping and increasing blood flow through the body, and it was created by Ireland-based Medtronic.
MDT stock rose 0.6% after hours yesterday.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
