VeriFone, Toll Brothers Rise; AMR Drops

Bikram Pandey
25 Aug, 2010
New York City

U.S. stocks and indexes traded lower after new home sales plunged. AMR Corp, the parent of American Airlines dropped 5% after mechanics union decide to strike. Toll Brothers gained after it reported unexpected profit. VeriFone Systems Inc surged 8% after it lifted annual outlook.

[R]12:10 AM New York – U.S. stocks and indexes traded lower after new home sales plunged. AMR Corp, the parent of American Airlines dropped 5% after mechanics union decide to strike. Toll Brothers gained after it reported unexpected profit. VeriFone Systems Inc surged 8% after it lifted annual outlook.[/R]

Of the stocks in the Dow, 4 increased, 26 decreased and none was unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, The Home Depot, Inc. led the gainers with a rise of 0.83% followed by increase in McDonald’s Corporation of 0.63%, in Johnson & Johnson of 0.12% and in The Travelers Companies, Inc. of 0.08%.

Caterpillar Inc. led the decliners with a fall of 2.00% followed by decline in The Boeing Company of 1.48%, in E. I. du Pont de Nemours and Company of 1.39%, and in Bank of America Corporation of 1.33%.

Other Movers

AMR Corp ((AMR)) declined as much as 5% after the parent of American Airlines after the mechanics union decided to strike after rejecting three-year contract.

American Eagle Outfitters, Inc. ((AEO)) surged 4.8% or 61 cent to $13.10 after the clothing, accessories and personal care product reported second quarter total sales was $652 million, compared with $647 million in the fiscal 2009 second quarter. Comparable store sales decreased 1%. Net income in the quarter was $9.7 million, or 5 cents per diluted share, compared to a net income of $28.5 million, or 14 cents per share in the year ago quarter.

Barnes & Noble, Inc. ((BKS)) fell 1.4% or 21 cent to $14.45 after the books retailer reported first quarter sales increased 21% to $1.4 billion from $1.16 billion in the prior-year quarter. Net loss attributable to the company was $62.52 million or $1.12 per diluted share, compared to net income of $12.27 million or 21 cents per share in the same quarter last year.

BHP Billiton Limited ((BHP)) declined 1.2% or 81 cent to $64.61 after the diversified natural resources company reported fiscal 2010 revenue increased 5.2% to $52.80 billion from $50.21 billion in the comparable period. Net income in the period surged 115.3% to $12.7 billion compared to net income of $5.9 billion a year ago.

Burger King Holdings, Inc. ((BKH)) decreased 1.5% or 45 cent to $29.35 after the fast food hamburger restaurant said fourth quarter revenues fell 1% to $623.0 million from $629.9 million in the same quarter last year. Net income in the quarter declined 16.8% to $49.0 million or 36 cents per diluted share compared with net income of $58.9 million or 43 cents per share in the same quarter last year.

Coldwater Creek Inc. ((CWTR)) spurted 21.7% or 73 cent to $4.08 after the national specialty retailer of women''s apparel reported second quarter net sales rose 12.6% to $253.5 million, compared with $225.2 million in the fiscal 2009 second quarter. Net income in the quarter was $1.5 million, or 2 cents per diluted share, compared to a net loss of $4.9 million, or 5 cents per share in the year ago quarter.

Dycom Industries Inc. ((DY)) plunged 7% or 60 cent to $7.91 after the provider of specialty contracting services stated fourth quarter contract revenue increased 4.4% to $281.54 million from $269.69 million in the prior-year quarter. Net income in the quarter slumped 30.3% to $4.6 million or 12 cents per diluted share, compared to net income of $6.6 million or 17 cents per share for the year-ago quarter.

Pacific Sunwear of California, Inc. ((PSUN)) rose 1.4% or 6 cent to $4.11 after the specialty retailer reported second quarter net sales declined 10.2% to $218 million from $243 million in the year-ago quarter on same-store sales fall of 10%. Net loss in the quarter widened 65.7% to $23.47 million or 36 cents per diluted share from $14.16 million or 22 cents per share in the same quarter last year.

Toll Brothers, Inc. ((TOL)) gained 3.7% or 60 cent to $16.79 after the luxury homebuilder reported third quarter revenues fell 1.6% to $454.20 million from $461.38 million in the prior-year quarter. Net income generated in the quarter was $27.3 million or 16 cents per diluted share, compared to a net loss of $472.3 million, or $2.93 per share in the year-ago quarter.

The company said that it currently projects lower revenues in fourth quarter than last year.

Lennar Corp, Pulte Group Inc, DR Horton and KB Home gained at least 0.7% after the release of Toll Brothers earnings.

VeriFone Systems, Inc. ((PAY)) soared 8.4% or $1.90 to $24.28 after the provider of electronic payment solutions said third total net revenues soared 23.8% to $261.45 million from $211.24 million in the quarter last year. Net income in the quarter rose 12% to $18.53 million or 21 cents per diluted share, compared with net income of $16.54 million or 20 cents per share for the year-ago quarter.