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Summary
- Canada’s paper maker Paper Excellence will buy Domtar in a US$3billion deal.
- Plug Power delayed first-quarter results, expects 60 percent revenue growth in Q1.
- Gaming company Roblox’s first-quarter revenue jumped 140 percent year over year.
Shares of Domtar Corporation (NYSE:UFS), Plug Power Inc. (NASDAQ:PLUG) and Roblox Corporation (NYSE:RBLX) grew in double digits on Tuesday’s trading.
South Carolina-based Domtar, which makes packaging papers, saw its shares rise 16.8 percent as the company agreed to be acquired by Paper Excellence.
Fuel cell company Plug Power and gaming company Roblox stocks also grew 17.59 percent and 21.33 percent respectively. On Monday, Plug Power gave estimates for its first-quarter and second quarter while Roblox reported its first quarterly earnings after becoming public.
Canada’s Paper Excellence To Buy Domtar
Domtar said Monday it agreed to be bought by Canada-based paper maker Paper Excellence in an all-cash transaction representing an enterprise value of US$3 billion.
The Canada-based Paper Excellence will pay US$55 per share to acquire all outstanding standing shares of Domtar. The deal is expected to be close in second half of the year.
Domtar will continue to operate as a stand-alone business after the transaction under the same management. Paper Excellence also plans to retain Domtar’s corporate and production locations.
Plug Power Delays Restate Financial Statements
The New York – based company on May 10 provided gross billings and revenue estimates of the first and second quarter as it delayed the first-quarter results and pushed the filing of 2020 annual report.
In March, Plug Power announced that it would restate financial statements for the previous four years because of accounting errors, primarily related to non-cash items.
Source: Pixabay
The company said it would file the annual report, which includes the restated statements, within the next five days, while the first-quarter earnings report would be out on May 17.
Meanwhile, Plug Power anticipates US$70 million in first-quarter gross billings, which would represent a year-over-year growth of 60 percent. Net revenue is projected to grow more than 60 percent to US$67 million.
The company forecasts second-quarter gross billings and net revenue to grow approximately 50 percent. Gross billings are expected to be more than US$105 million while net revenue is projected over US$102 million.
READ MORE: Is Recovery On Horizon For Ballard, Plug Power, Bloom After Fall?
Roblox’s Q1 Revenue Up 140%
Roblox CEO David Baszucki said there is a “massive” opportunity for the company’s business while reporting a 140 percent year-over-year growth in its first-quarter revenue to US$386.9 million.
The online gaming company’s bookings in the three months totaled US$652.3 million, rose 161 percent. Average daily active users increased 79 percent to 42.1 million.
However, Roblox’s net loss during the quarter swelled to US$134.2 million from the loss of US$74.4 million in the year-ago quarter.
READ MORE: Palantir’s Strong Q1 Topline Growth Drives Up Stock Price
