Top Gainers: Versum Materials, Commscope and American Airlines Soar
Investing.com – Versum Materials, Commscope and American Airlines rallied Monday, sidestepping the rout on Wall Street.
Chemical company Versum Materials (NYSE:VSM) rose 15% after confirming it was in talks to merge with Entegris (NASDAQ:ENTG) in deal that could create a multibillion semiconductor company.
The combined company, to be named Entegris, is expected to have a pro forma enterprise value of about $9 billion, with about $3 billion in revenue for calendar year 2018.
News of the merger helped Versum shrugged off weaker-than-expected fiscal first-quarter earnings and revenue.
Versum reported earnings of $0.56 a share on $340 million in revenue, below consensus estimates.
Wireless network builder Commscope (NASDAQ:COMM) was rewarded for posting preliminary fourth-quarter revenue that topped Wall Street esitmates. It shares rose 7%.
CommScope preliminary fourth-quarter revenue came in the range of $1.05 billion to $1.07 billion, topping the Street estimate of $1.04 billion.
"For 2019, we continue to expect modest growth and relatively stable year-over-year results, which reflect anticipated cautious spending patterns by large North American operators," said Chief Executive Officer Eddie Edwards.
American Airlines (NASDAQ:AAL) continued to add to gains from late last week, when its fourth-quarter results topped analysts' estimates, prompting bullish calls from Wall Street. Its stock rose 4%.
Imperial Capital lifted its price target on American Airlines to $46 from $42 on expectations airlines are set to see an uptick in earnings growth.
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