Shares of Oxford Industries (OXM) jumped late after the Atlanta-based fashion apparel maker announced its acquisition of Sugartown Worldwide Inc., which owns the women's brand Lilly Pulitzer.
Financial terms of the deal weren't disclosed in a press release announcing the transaction but Oxford said in a Form 8-K filing with the Securities and Exchange Commission that the all-cash acquisition carried a purchase price of $60 million, and that the deal includes an earnout agreement allowing for the payment of an additional $20 million in cash over the next four years if the acquired assets achieve certain performance targets.
Oxford, whose other brands include Tommy Bahama and Ben Sherman, also said it expects the Lilly Pulitzer business to contribute more than $70 million in sales in fiscal 2011, adding earnings of roughly 40 cents a share to its results.The stock was last quoted at $24.35, up 9.8%, on volume of around 54,000, according to Nasdaq.com. Based on a regular session close at $22.17, the shares had gained 5.5% year-to-date.
TIBCO SoftwareTIBCO Software (TIBX) was a gainer in after-hours action, rising 4% to $22 on volume of around 250,000. After Tuesday's closing bell, the Palo Alto, Calif.-based maker of infrastructure software beat Wall Street's expectations for its fiscal fourth-quarter results handily and announced its board's approval of a $300 million stock buyback program. TIBCO said its non-GAAP profit for the three months ended Nov. 30 came in at $53.8 million, or 31 cents a share, on revenue of $241.2 million, well ahead of the average estimate of analysts polled by Thomson Reuters for earnings of 28 cents a share on revenue of $228.5 million. The company said the new $300 million repurchase authorization replaces its existing program, which still had about $159 million left on it. Based on a regular session close at $21.18, TIBCO shares had gained an impressive 120% so far in 2010, and Wall Street had grown cautious about how much higher the stock could go from those levels. Of the 13 analysts covering the shares, eight had either hold (7) or underperform (1) ratings, and while the remaining five analysts rated the stock a buy, the median 12-month price target of the group stands at $18.50, nearly 13% below current levels. --Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV