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Nike, FICO Shares Fall in After-Hours Trading; Synaptics Jumps on Revised Buyout
Summary
Nike shares slipped on a revenue miss, while FICO and TransUnion dropped on regulatory concerns. Synaptics surged after ON Semiconductor raised its all-cash offer in a revised merger agreement.
Shares of Nike, FICO, and TransUnion declined in after-hours trading Thursday, driven by a disappointing sales report and potential regulatory headwinds. In contrast, Synaptics surged after the chipmaker agreed to an amended, all-cash acquisition offer from ON Semiconductor.
Nike Stumbles on Revenue Miss
Nike (NKE) shares fell 3% in extended trading following a mixed fiscal first-quarter report that highlighted persistent top-line challenges. While the company's adjusted earnings per share of $0.48 beat analyst expectations of $0.44, its revenue of $11.21 billion fell short of the $11.35 billion consensus estimate.
The athletic giant reported that revenue declined 5% year-over-year on a currency-neutral basis. The results were hampered by an 8% drop in Nike Direct sales and continued weakness in its Greater China and EMEA (Europe, Middle East, and Africa) regions, signaling ongoing demand issues for the brand.
Credit Bureaus Fall on Regulatory Report
Shares of Fair Isaac Corporation (FICO) and TransUnion (TRU) dropped 7% and 6% respectively. The sell-off was triggered by a report that the Federal Housing Finance Agency (FHFA) plans to direct government-sponsored enterprises Fannie Mae and Freddie Mac to require mortgage lenders to use credit data from only two of the three major bureaus, instead of all three.
AdThis potential policy shift sparked investor concern over reduced transaction volumes and fee compression for credit-scoring and reporting agencies involved in the mortgage underwriting process.
Synaptics Soars on Amended ON Semiconductor Deal
In the semiconductor sector, Synaptics (SYNA) jumped 15% while its acquirer, ON Semiconductor (ON), rose 6%. The move came after the companies announced an amendment to their merger agreement in response to an unsolicited third-party proposal for Synaptics.
Under the revised terms, ON Semiconductor will acquire Synaptics for $123 per share in cash, an all-cash deal valued at approximately $5.7 billion. The company stated the updated transaction provides certainty for Synaptics shareholders and is expected to be immediately accretive to onsemi’s non-GAAP earnings per share.
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