Stocks In News (OMN, HERO, ASGN)
OMNOVA Solutions Inc. (NYSE: OMN) shares are trading higher by 155 in the pre-market session after the company reported strong first quarter financial results late Tuesday.
The company posted first-quarter net income of $12.7 million or $0.28 per share, as compared to $1.0 million or $0.02 per share in the previous year quarter. Net sales increased 1.5% to $275.9 million, as against $271.9 million in the year ago period. Analysts expected the company to report earnings of $0.10 per share for the quarter.
Gross margin increased to 22.1% from 19.2% as raw material costs was at relatively low levels in the beginning of the quarter.
Hercules Offshore, Inc. (NASDAQ: HERO) shares surged about 2% to $5.18 in the pre-open session after the company announced its intention, to publicly offer up to 20,000,000 shares of common stock in an underwritten public offering.
Additionally, the company said it will buy a rig from a unit of Diamond Offshore Drilling Inc for $40 million in cash to execute a three-year drilling contract with oil producer Saudi Aramco.
On Assignment, Inc. (NASDAQ: ASGN) shares soared over 25% in the pre-market session after the company signed an agreement to acquire Buy Privately-held Apex Systems Inc. As per the terms of the agreement, On Assignment will acquire all of Apex Systems’ equity and retire all of its debt, for a total of $600 million. The purchase price is comprised of $383 million in cash, and newly-issued stock valued at $217 million.
The transaction, expected to close in May, will almost double the size of the company and create the second-largest IT staffing firm in the U.S.