U.S. stocks closed mixed Tuesday. The Dow Jones Industrial Average slipped 16 points to 8323 and the Nasdaq Composite slid 1.3 points to 1765. However, the Standard & Poor's 500 rose 2 points to 895. Among the companies whose shares are trading in the after-hours session are Jabil Circuit Inc. (JBL), Oracle Corp. (ORCL) and Sonic Corp. (SONC).
Jabil Circuit swung to a fiscal third-quarter loss - its fourth in the past six quarters - on lower sales and restructuring charges. But Chief Executive Timothy Main said "end-markets began to stabilize during the quarter." Shares fell 3% to $6.90 in after-hours trading.
Oracle's fiscal fourth-quarter profit declined 7.2% as the stronger dollar continued to weigh on results, but margins improved and revenue, while falling, came in above analysts' estimates. Shares were up as much as 2.8% in recent after-hours trading, but are now trading up 1.9% at $20.24.
Sonic's fiscal third-quarter earnings fell 2.7% as the economic downturn continued to hurt sales, but the restaurant company picked up the pace with its key effort to refranchise its majority-owned stores. In after-hours trading, Sonic shares were up 4.2% at $9.17 as results topped Wall Street estimates.
AeroVironment Inc.'s (AVAV) fiscal fourth-quarter profit fell 9%, as the aircraft manufacturer reported higher revenue offset by lower margins. Shares were up 5.6% to $28.90 in after-hours trading, as the results came in above analyst estimates and AeroVironment - which makes small, pilotless drones for the military - issued a fiscal-year revenue target in line with Wall Street expectations.
Tech Target Inc. (TTGT) said it anticipates its first-quarter revenue will hit the high end of its previous view, which now puts its forecast inline with analysts' latest estimates. The company had previously forecast revenue in the range of $17 million to $18 million. Shares jumped 26% to $5.
Regular Session Movers:
Acura Pharmaceuticals Inc. (ACUR, $5.89, -$1.68, -22.19%) said its new drug application for Acurox immediate-release pain tablets is unlikely to be approved by the U.S. Food and Drug Administration's June 30 deadline, raising the possibility Acurox could ultimately be rejected.
Halozyme Therapeutics Inc. (HALO, $6.48, -$1.05, -13.94%) priced 6.2 million shares of common stock at $6.50 a share, a 14% discount from Monday's close. The biopharmaceutical company raised a total of about $40 million after selling one million more shares than anticipated. Halozyme had about 83 million shares outstanding prior to the offering.
Boeing Co. (BA, $43.87, -$3.03, -6.46%) delayed the first flight - and initial delivery - of its new 787 Dreamliner, saying an area within the side-of-body section of the aircraft needs to be reinforced. The Chicago company indicated it will take second-quarter charges related to the delay and said it will be several weeks before the plane maker releases a new flight and delivery schedule. The plane is already two years behind schedule on five schedule delays. Shares of Precision Castparts Corp. (PCP, $75.51, -$1.74, -2.25%) and Spirit AeroSystems Holding Corp. (SPR, $14.13, -$0.88, -5.86%), two companies that make parts for Boeing, dropped as well.
Memory-chip maker Rambus Inc. (RMBS, $14.85, -$2.98, -16.71%) slightly cut its guidance on second-quarter revenue and said it will offer $150 million of convertible senior notes due 2014.
Actuant Corp. (ATU, $12.53, -$1.98, -13.65%) announced plans to offer 9 million shares of Class A stock as the industrial company tries to reduce its debt. The offering will dilute shares outstanding by 16%.
Cytec Industries Inc. (CYT, $16.48, -$1.62, -8.95%) slashed its guidance on 2009 earnings, and continued weak demand led the specialty chemicals and materials company to also predict a "modest" second-quarter loss.
Alvarion Ltd. (ALVR, $4.44, +$0.49, +12.41%) will supply the technology for Aria SpA's nationwide mobile WiMAX broadband wireless network in Italy. Under the deal, Aria, the only telecommunications operator in Italy with a national WiMAX license, will build a network at the 3.5-gigahertz frequency to provide broadband services to all 21 Italian regions using Alvarion equipment.
Shares of Pacific Capital Bancorp (PCBC, $2.65, -$0.66, -19.94%) hit a 17-year intraday low Tuesday amid concerns about the California-based regional bank's ability to raise capital now that it has deferred the interest payments on its trust preferred securities and suspended the dividends on its common and preferred stock.
Republic Airways Holdings Inc. (RJET, $6.00, +$1.90, +46.34%) agreed to acquire fellow regional carrier Midwest Airlines from TPG Capital for $31 million, just 17 months after the private-equity giant paid $452 million. Since then, the airline industry has suffered from record-high fuel prices and now the ongoing slump in ticket demand.
Laboratory Corp. of America Holdings (LH, $65.45, -$0.26, -0.40%) agreed to acquire Monogram Biosciences Inc. (MGRM, $4.52, +$2.84, +169.05%), a maker of products to help guide and improve the treatment of serious diseases, for about $106.7 million, continuing LabCorp's acquisition spree. Under the agreement, expected to close in the third quarter, LabCorp will pay $4.55 for each Monogram share, more than double Monday's closing price of $1.68.
The top executive at Agrium Inc. (AGU, $40.74, +$1.85, +4.76%) said Tuesday he expected the board of takeover target CF Industries Holdings Inc. (CF, $72.88, +$3.56, +5.14%) to engage in talks after CF shareholders tendered 62% of their holdings in support of Agrium's $3.89 billion offer. The four-month battle among three North American fertilizer makers showed no signs of weakening, however, as CF maintained its shareholders do not back the price of an offer from Agrium it claims may be blocked by regulators.
Boston Scientific Corp. (BSX, $9.51, +$0.27, +2.92%) said its highly anticipated study, called Madit-CRT, met its main goal by showing devices for heart failure called CRT defibrillators were associated with significant reduction in death or heart-failure interventions among patients with milder symptoms, compared with cheaper defibrillators. This could shift more business toward pricier devices while helping a defibrillator market slowed by product troubles in recent years. Rival St. Jude Medical Inc. (STJ, $40.55, +$1.01, +2.55%), which analysts say may benefit more, also climbed on the news.
Used-car retailer America's Car-Mart Inc.'s (CRMT, $19.68, +$2.02, +11.44%) fiscal fourth-quarter profit fell 15% due to a slight decrease in vehicles sold and to falling margins. But shares rose as the earnings topped analysts' expectations.
Credit Suisse cut its stock-investment rating on Bridgepoint Education Inc. (BPI, $14.84, -$1.11, -6.96%) to neutral from outperform, saying although its thesis on the for-profit educator's business prospects and risks hasn't changed, the shares have hit the firm's price target of $15.
CapitalSource Inc. (CSE, $4.30, +$0.27, +6.70%) is on an improving road to recovery, UBS said as it upgraded its investment rating on the shares to buy from neutral. The firm said the specialized commercial finance company has several options to improve balance sheet strength, via further extensions to its debt maturities or equity raising with an IPO of its health-care real estate or a dilutive secondary offering. The firm added a debt extension or pay-down via equity raising should remove bankruptcy risk priced into the stock.
Shares of CardioNet Inc. (BEAT, $15.01, -$0.97, -6.07%) set an all-time low for a second consecutive day - a slump analysts pinned on a lack of near-term catalysts for the maker of outpatient heart-monitoring devices. Analysts said investors are likely moving to the sidelines on uncertainty over the rate that Medicare will reimburse the CardioNet for its lead product, a mobile cardiovascular telemetry system, in 2010.
Commercial Metals Co. (CMC, $14.81, +$0.60, +4.22%) swung to a fiscal third-quarter loss as weak demand and falling prices contributed to the second-straight quarterly loss for the steel manufacturer and recycler. The loss wasn't as bad as analysts were expecting and the company said the fourth quarter looks like it will be similar.
UBS upgraded its investment rating on the shares of ConAgra Foods Inc. (CAG, $19.78, +$0.84, +4.44%) to buy from neutral, noting that heavy input inflation is moderating, as are private-label share gains. The firm said improved product positioning via improvements and greater promotional activity are helping sales.
BMO Capital Markets raised its stock-investment ratings on DCT Industrial Trust (DCT, $3.99, +$0.17, +4.45%) and Duke Realty (DRE, $8.31, +$0.28, +3.49%) to outperform, citing improving balance-sheet prospects for both real estate investment trusts.
Equity LifeStyle Properties Inc. (ELS, $33.74, -$2.83, -7.74%) - operator of manufactured-home communities and properties for vacationers driving recreational vehicles - said it plans to offer four million shares of common stock, which caused shares to slide on fears of dilution. The company currently has about 25.3 million shares outstanding.
Matrixx Initiatives Inc. (MTXX, $4.83, -$0.42, -8.00%) received an informal inquiry from the Securities and Exchange Commission on Friday, according to a document filed Tuesday with the SEC. The SEC is requesting certain documents and information relating to the previously reported warning letter issued to the company by the U.S. Food and Drug Administration. As reported, the FDA said last week that consumers need to stop using certain Zicam cold and allergy products because they can cause permanent loss of smell. Matrixx is the maker of Zicam.
Moody's Investors Service lowered its credit ratings on Mercer International Inc. (MERC, $0.87, -$0.03, -3.33%) to highly speculative territory, and concurrently placed the ratings on watch for additional downgrades, citing upcoming debt obligations and deteriorating results. The Canadian-based pulp and paper manufacturing company faces near-term maturity of two revolvers, due in February and May, but only had $28 million of cash as of March 31, according to Moody's. The credit agency also expects the company to experience negative free cash flow over the next four quarters despite working capital and input cost improvements.
Shipping and logistics company Navios Maritime Holdings Inc. (NM, $4.13, +$0.49, +13.46%) said it agreed to acquire four capesize vessels for about $324.5 million. It also amended the terms of its existing agreements for three new-build capesize vessels. Funding for part of the purchase of all seven vessels will come from an issuance of $165.22 million in mandatory convertible preferred stock, which Chief Executive Angeliki Frangou said will help the company conserve cash while protecting shareholders from "undue dilution."
Office Depot Inc. (ODP, $3.89, +$0.10, +2.64%) said it has received a $350 million investment from private equity firm BC Partners, giving the struggling retailer a cash infusion to help it weather the economic downturn.
Citigroup upgraded its investment rating on the shares of Portugal telephone company Portugal Telecom SGPS S/A (PT, $9.38, +$0.65, +7.45%) to buy from hold to reflect an attractive 9% dividend yield, support from domestic operations, growth in Brazil and easier refinancing.
Smith & Wesson Holding Corp.'s (SWHC, $5.42, -$0.33, -5.74%) fiscal fourth-quarter profit more than doubled, as demand for military and police pistols drove growth in revenue and margins. But shares fell after the company issued a conservative near-term revenue forecast. That provided fodder to investor worries that the 2009 firearms boom may have peaked, Merriman Curhan Ford analyst Eric Wold said.
Shares of Starbucks Corp. (SBUX, $14.16, +$0.45, +3.28%) got an extra shot from Baird, which upgraded its investment rating on the stock to outperform and raised its price target to $17. The firm said its "field research" showed an improvement in category traffic as marketing campaigns go into high gear to fight off new competitors. Coupled with cost savings at the coffee retailer, the risk/reward in shares is improving, Baird added.
Steelcase Inc. (SCS, $5.33, +$0.27, +5.34%) posted break-even results for its fiscal first quarter on an $18 million gain on the value of company-owned life insurance policies, as sales continued to slump at the office-furniture maker. The company also said it will trim a further 200 white-collar jobs and consolidate smaller manufacturing facilities to save about $30 million a year.
Shares of Stratasys Inc. (SSYS, $11.52, -$1.48, -11.38%) - which makes additive fabrication machines for prototyping and manufacturing plastic parts - fell after Piper Jaffray said its research showed that the second quarter remains challenging, as some of the U.S. and European companies that sell its products are seeing weakness. The firm cut its investment rating on the stock to neutral from buy.
Standard & Poor's will replace Tyco Electronics Ltd. (TEL, $18.59, -$0.50, -2.62%) with MetroPCS Communications Inc. (PCS, $14.33, +$0.71, +5.21%) in the S&P 500 index, as the electronic-components maker is in the process of redomesticating to Switzerland. The move abroad makes the company ineligible for continued inclusion in the S&P 500 index, S&P said.
Airlines generally traded lower as the Air Transport Association reported passenger revenue on U.S. airlines declined 26% in May compared with a year ago, the seventh consecutive monthly decline. Revenue dropped due to the recession and impact of the swine flue outbreak. UAL Corp. (UAUA, $3.20, -$0.37, -10.36%), US Airways Group Inc. (LCC, $2.17, -$0.30, -12.15%) and AMR Corp. (AMR, $3.96, -$0.14, -3.41%) all traded lower.
VeriFone Holdings Inc.'s (PAY, $7.21, +$0.31, +4.49%) risks appear to be well understood, Wedbush Morgan said. The firm raised its investment rating on the shares to hold, saying it believes investors "are now more aware of the unique risks from VeriFone's financial reporting, SEC investigation and debt load," and have priced in threats. The firm added VeriFone's large inventory write-downs in the last few periods "have reduced the cost of inventory to an extent that could help boost gross margins for a few quarters." Wedbush also anticipates more non-recurring charges.
Posts
No comments:
Post a Comment