Alongside its dividend announcement, Fortune Brands (NYSE:FBHS) announces board authorization to repurchase up to $250M worth of company stock over the next two years. This amount will be added to the $78M remaining under prior authorizations.
At today's closing price, the $328M would be enough to buy back about 8M shares, or just less than 5% of the float.
Walgreen (WAG -0.2%) continues to feel an impact from its generic pricing miscalculation that led to the dismissal of several high-level execs.
During the firm's earnings call, management highlighted how lower drug reimbursement rates could continue to crimp profits as the company reels in less than a more favorable contract would have brought in.
Time Warner Cable's (TWC -0.3%) inability to strike deals with distributors for its SportsNet LA network could have a ripple effect, say industry insiders.
The cable operator took the brunt of the criticism in the L.A. area over coverage of the division-winning L.A. Dodgers being unavailable for a large swath of the region.
The development could be a factor as networks such as Fox Sports North (NASDAQ:FOXA), Comcast SportsNet Mid-Atlantic (NASDAQ:CMCSA), New England Sports Network, YES Network, and Comcast SportsNet Philadelphia look to renegotiate their deals with pay-TV operators.
The long-established window for feature films established between Hollywood studios and theater exhibitors will crack in a major fashion next summer when Netflix (NFLX +1.1%) and IMAX (IMAX +0.7%) jointly release a film online and through the large-screen IMAX format.
Though media analysts think theater chains will continue to bristle over the game-changing initiative - and for now IMAX says it will let exhibitors control the films that run on IMAX screens - IMAX sits in a powerful position in the future if it wants to play hardball.
"Netflix already changed the TV business in a very, very significant way. The movie business is teed up next," says BTIG's Rich Greenfield on the development.
Netflix and Weinstein are collaborating on a number of projects, several of which could turn into straight-to-streaming feature films.
What to watch: Hollywood studios (LGF, SNE, VIA, CMCSA, DIS) could be the ones to have the final say on if the feature film window model is adjusted.
Having just appeased one activist (Carl Icahn) by announcing plans to spin off PayPal, eBay (EBAY +6.8%) is now set to contend with another: Dan Loeb's Third Point LLC reportedly has a "significant position" in eBay, and has held talks with outgoing CEO John Donahoe.
eBay remains sharply higher, albeit off its premarket highs. Street commentary about the spinoff has been positive - Cowen thinks both Marketplaces and PayPal will be better-equipped to deal with rivals as independent companies, and calls Amex's Dan Schulman a "compelling choice" to run PayPal. With Marketplaces making up 27% of PayPal's Q2 transactions, overlap between the businesses is deemed "manageable."
SunTrust thinks eBay is worth somewhere between $55.72-$88.74/share on a sum-of-the-parts basis. Re/code notes an independent PayPal could have an easier time recruiting talent and battling with upstarts such as Apple and Stripe; the latter has recently scored deals with Facebook and Twitter.
Bank of America Merrill Lynch analyst John Murphy says the long-term outlook from Ford F is consistent with what it expected, despite the profits hiccups in key regions the automaker highlighted yesterday.
"We view Ford’s 2020 targets as fairly consistent with our expectation for earnings power in the $2.00 to $3.00 per share range by the end of the decade," writes Murphy.
Shares of Ford came within a dime of a 52-week low in trading this morning.
Shareholders at FedEx (FDX +0.1%) approved all 12 directors for re-election to serve another one-year term.
A number of stockholder proposals were voted down, including one asking the company to limit execs from pledging their FDX shares and a motion to sever ties with the Washington Redskins until the team changed its name.
A new buyback allowance of up to 15M shares was approved.
The decision by Netflix (NASDAQ:NFLX) to offer feature films at select IMAX (NYSE:IMAX) theaters will present it with a "terrific opportunity," says IMAX Entertainment CEO Greg Foster.
The plan for simultaneous IMAX-Netflix releases in China and U.S. has been tapped to be a market disrupter by some film insiders, although without getting a look at the financial nuts and bolts of the revenue split they are hesitant to label winners and losers from the deal.
The partnership will be small in scale at first with its success likely to be highly-contingent on the quality of Weinstein films feeding the initiative.