Intel Drops; Dollar Tree, PetSmart Rise

Bikram Pandey
19 Aug, 2010
New York City

U.S. stocks fell and the Dow and S&P 500 index fell more than 1% after jobless claims rose. Intel declined more than 3% after it agreed to acquire McAfee for $7.7 billion. Dollar Tree, Inc increased 4% after quarterly net surged 37%. PetSmart, Inc surged 10% on better than expected earnings.

[R]10:45 AM New York – U.S. stocks fell and the Dow and S&P 500 index fell more than 1% after jobless claims rose. Intel declined more than 3% after it agreed to acquire McAfee for $7.7 billion. Dollar Tree, Inc increased 4% after quarterly net surged 37%. PetSmart, Inc surged 10% on better than expected earnings.[/R]

Of the 30 stocks in the Dow Jones Industrial Average, all declined.

Intel Corp led the decliners with a loss of 3.3% followed by losses in General Electric of 2.1%, in 3M Company of 1.97% and in Boeing Company of 1.92%. Home Depot, Verizon and Alcoa Inc fell more than 1.6%.

Intel Corp. entered into an agreement to acquire McAfee Inc. through the purchase of all of the company''s common stock at $48 per share in cash, for around $7.68 billion. McAfee would become a wholly-owned unit of Intel, reporting into Intel''sSoftware and Services Group.

Other Movers

Applied Materials Inc ((AMAT)) rose 1.9% or 22 cent to $11.60 after the semiconductor equipment maker said third quarter net sales increased 123% to $2.52 billion from $1.13 billion in the same quarter last year. Net income generated in the quarter was $123 million or 9 cents per diluted share, compared to a net loss of $55 million or 4 cents per share in the prior-year quarter.

Brocade Communications Systems, Inc. ((BRCD)) plunged 5.8% or 30 cent to $4.84 after the data storage solutions provider reported third quarter revenues increased 2.07% to $503.51 million from $493.28 million last year. Net income in the quarter was $21.96 million or 5 cents per diluted share compared to a net loss of $23.49 million or 6 cents per share the prior-year quarter.

Dollar Tree, Inc. ((DLTR)) gained 4.3% or $1.80 to $43.65 after the discount retailer reported second quarter net sales grew 12.7% to $1.38 billion from $1.22 billion in the same quarter last year. Net income in the quarter rose 37% to $78.0 million or 61 cents per diluted share compared to net income of $56.9 million or 42 cents per share in the prior-year quarter.

Delta Apparel Inc. ((DLA)) rose 1.7% or 25 cent to $14.25 after the apparel manufacturer reported fourth quarter net sales increase 20.5% to $126.2 million from $104.7 million for the year-ago quarter. Net income in the quarter rose 40.8% to $5.7 million or 64 cents per diluted share, compared to net earnings of $4.0 million or 47 cents per share for the year-ago quarter.

For the fiscal year 2010 sales increased 19.5% to $424.4 million from $355.2 million in the same period of fiscal 2009. Net income rose 88.8% to $12.2 million or $1.40 per diluted share, compared to net earnings of $6.5 million or $0.76 per share for the fiscal year 2009.

1-800 FLOWERS.COM, Inc. ((FLWS)) declined 15.3% or 37 cent to $2.05 after the online florist fourth quarter net revenue decrease 4.1% to $165.4 million from $172.5 million for the year-ago quarter. Net loss in the quarter was $4.95 million or 8 cents per diluted share, compared to net loss of $22.23 million or 35 cents per share for the year-ago quarter.

For the fiscal year 2010 revenue decreased 6.5% to $667.7 million from $714.0 million in the same period of fiscal 2009. Net loss was $4.22 million or $0.07 per diluted share, compared to net loss of $98.42 million or $1.55 per share for the fiscal year 2009.

Limited Brands, Inc. ((LTD)) increased 2.3% or 59 cent to $26.37 after the women''s apparel and personal care products retailer stated second quarter net sales climbed 8.2% to $2.24 billion from $2.07 billion in the prior-year quarter. Net income in the quarter rose 140.5% to $178.7 million or 54 cents per diluted share, compared to net income of $74.3 million or 23 cents per share in the year-ago quarter.

NetApp Inc. ((NTAP)) rose 1% or 48 cent to $39.75 after the data management solutions provider said first quarter net revenues surged 35.7% to $1.14 billion from $0.84 billion last year. Net income in the quarter soared 174.3% to $141.8 million or 38 cents per diluted share from net income of $51.7 million or 15 cents per share in the previous year.

PetSmart, Inc. ((PETM)) surged 10% or $3.10 to $33.25 after the specialty pet retailer stated second quarter total sales increased 6.2% to $1.39 billion from $1.30 billion a year ago on comparable store sales rise of 4.6%. Net income grew 24% to $48.4 million or 41 cents per diluted share from net income of $39.0 million or 31 cents per share in the second quarter last year.

Staples, Inc. ((SPLS)) slipped 1.3% or 34 cent to $19.31 after the office products company reported second quarter sales totaled $5.53 billion, unchanged from last year. Net income in the quarter soared 40% to $129.8 million or 18 cents per diluted share from net income of $92.4 million or 13 cents per share in the prior-year period.

Stage Stores ((SSI)) surged 9.9% or $1.06 to $11.76 after the specialty department store reported fiscal second quarter net sales of $345.0 million from $341.7 million in the same quarter last year. Net income for the quarter rose 13.6% of $10.3 million, or 0.27 cent per diluted share, compared with net income of $9.1 million, or $0.24 cent per diluted share, for the year ago quarter.

The Bon-Ton Stores, Inc ((BONT)) decreased 3.5% or 30 cent to $8.08 after the regional department store operator second quarter net sales slipped marginally 0.1% to $608.6 million from $609.2 million in the same quarter of last year on comparable store sales rise of 0.2%. Net loss in the quarter narrowed 3.2% to $33.7 million or $1.91 per share, compared to a net loss of $34.8 million or $2.04 per share in the prior year period.

The Cato Corporation ((CATO)) rose 0.5% or 13 cent to $23.50 after the women’s fashion specialty stores reported fiscal second quarter net sales increased 3% of $231.9 million from $225.4 million a year ago quarter. Net income for the quarter was $16.0 million, or 0.54 cent per diluted share, compared to net income of $16.7 million, or $0.56 cent per diluted share, for the same period last year.

The Children''s Place Retail Stores, Inc ((PLCE)) soared 7.5% or $3.13 to $45.26 after the children''s apparel and accessories retailer said second quarter net sales advanced 9.4% to $345.30 million from $315.68 million in the previous year. Net loss in the quarter widened 16.7% to $8.23 million or 30 cents per diluted share versus a net loss of $7.05 million or 24 cents per share last year.

Williams-Sonoma, Inc. ((WSM)) fell 0.1% or 16 cent to $28.17 after the specialty retailer of products for the home reported second-quarter net revenues increased 15.4% to $775.55 million from $672.11 million in the second quarter of fiscal 2009. Net income in the quarter surged 7590% to $30.76 million compared to net income of $0.40 million last year. Earnings per share were $0.28 compared with a break-even a year ago.