Industry Week in Review – April 29, 2011
Shares closed higher for the week with the Dow rising nearly 2.5% and the S&P 500 and NASDAQ each gaining approximately 2.0%. The White House announced this week that that CIA director, Leon Panetta, will take over as the new Secretary of Defense once Secretary Gates steps down this summer, with Gen. David Petraeus, the top U.S. and NATO commander in Afghanistan, to succeed Panetta at the helm of the CIA, and U.S. Marine Corps Lt. Gen. John Allen, deputy commander at U.S. Central Command, to replace Petraeus as the top general in Afghanistan.
Notes on some big movers:
Boeing Co. (Up 5.8%): Shares rose for the week as the Company released its 1Q11 earnings on Wednesday; The Company reported EPS of $0.78 on revenue of $14.9 billion, grew backlog to $329 billion, including $23 billion in orders during the quarter, and reaffirmed 2011 financial guidance of EPS in the range of $3.80 – $4.00
Mercury Computer Systems, Inc. (Down 8.2%): Shares fell for the week as the Company released its 4Q11 earnings on Tuesday; The Company reported revenues in the range of $57 – $59 million and diluted EPS in the range of $0.11 – $0.13 – analysts were expecting revenues of $61 million and EPS of $0.16 for the fourth quarter
Safran SA (Up 8.8%): Shares rose for the week as the Company released its 1Q11 earnings on Thursday; The Company reported revenue of €2,681 million, up 10.5% year-over-year driven by healthy recovery in the civil aftermarket, with significant strength in wide-body engines services and a lagging recovery in narrow-body
Notes on some relevant transactions:
URS Corporation announced on Wednesday that it has signed a definitive agreement to acquire Apptis Holdings, Inc., a provider of mission critical IT services to the U.S. Department of Defense and other federal agencies. URS will pay a net purchase price of approximately $260 million in cash for Apptis, which generated 2010 revenues of $298.2 million. The acquisition does not include the Iron Bow product reseller subsidiary of Apptis, which will continue to operate as an independent, stand-alone company.
Solera Holdings announced on Monday that it has signed a definitive agreement to acquire 100% of the membership interests of Explore Information Services, LLC, a leading U.S. provider of innovative data and analytics services used by automotive property and casualty (“P&C”) insurers, for approximately $520 million in cash. Solera generated 2010 revenues and EBITDA of $76.8 million and $33.9 million, respectively, and will fuel Explore’s expansion into the re-underwriting and analytics products and services for the P&C insurance industry.
ENSCO Inc. announced on Monday that it has acquired Quantum3D’s IData and IGL 178 product lines, a developer of a software development toolkit and application elements that provide a highly efficient development environment and high operational performance for digital display devices to the aerospace and defense industries. The acquisition will provide added value to IData customers and current avionics customers within ENSCO’s business.
Inverness Graham Investments announced on Monday that it has recapitalized Nobles Manufacturing, a provider of metal and composite ammunition magazines and feed systems, as well as industrial parts cleaners, for the U.S. military.