AK Steel, Beazer Drop; Genpact, MasterCard Jump

Bikram Pandey
15 Sep, 2010
New York City

AK Steel plunged more than 5% after the company revised third quarter operating loss. Beazer Homes declined after it lowered home sales and lot improvement spending outlook. Cisco plans to initiate dividend. Genpact Ltd surged on the buyout rumors.

[R]12:00 PM New York – AK Steel plunged more than 5% after the company revised third quarter operating loss. Beazer Homes declined after it lowered home sales and lot improvement spending outlook. Cisco plans to initiate dividend. Genpact Ltd surged on the buyout rumors.[/R]

Of the stocks in the Dow, 15 increased, 15 decreased and none was unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, The Travelers Companies, Inc. led the gainers with a rise of 1.987% followed by increase in Hewlett-Packard Company of 1.62%, in Cisco Systems, Inc. of 0.89%, in Pfizer Inc. of 0.82%, McDonald’s Corporation of 0.66%.

The Boeing Company led the decliners with a fall of 1.18% followed by decline in Alcoa Inc. of 1.04%, in Chevron Corporation of 0.78%, in Bank of America Corporation of 0.77%, in United Technologies Corporation of 0.63%.

Other Movers

AK Steel Holding Corporation ((AKS)) plunged 5% or 75 cent to $13.78 after the carbon, stainless and electrical steels producer revised third quarter operating loss $20 per ton.

Beazer Homes USA Inc declined 3% to $4.43 after the home builder lowered the number of home orders for the fourth quarter ending in September to between 700 and 800 from the previous estimate in June between 767 and 1,012. The company also lowered the land and lot development cost for the fiscal year to below $200 million from the previous estimate between $200 million and $220 million.

Cisco Systems, Inc. ((CSCO)) rose 0.9% or 21 cent to $21.66 after the networking equipment maker announced its intention to issue a dividend during the current fiscal year ending July 30, 2011 at its annual Financial Analyst Conference. The company is likely to issue a dividend yield of 1% to 2%.

Cypress Bioscience Inc ((CYPB)) soared 8.5% to $3.75 after it received a revised offer of $4.25 a share from a subsidiary of Ramius LLC.

DTE Energy Company ((DTE)) fell 0.06% or 3 cent to $48.22 after the utility company reiterated its outlook for fiscal year 2010 operating earnings in a range of $3.45 to $3.80 per share. The company also said it is executing plans to achieve long-term operating earnings per share growth in a range of 5% to 6%, combined with an attractive dividend yield.

Genpact Ltd ((G)) increased 7% to $16.95 after Financial Express in Mumbai reported that the company may be acquired by Cognizant Technology Solutions Corp ((CTSH)) which declined 2.7% to $62.45. Cognizant employs 88,000 and Genpact has a staff of 42,500. India based companies after the merger are estimated to have combined sale that will trail the two leaders Tata Consultancy and Infosys.

Global Traffic Network, Inc ((GNET)) declined 3.1% or 16 cent to $4.99 after the traffic and news information reported fiscal fourth quarter revenue increased 29% to $23.2 million compared to $18.0 million for the same period a year ago. Net income was $0.4 million or 2 cent per diluted share compared to net loss of $1.0 million or 6 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue gained 55% to $93.3 million compared to $60.3 million for the same period a year ago. Net income was $0.6 million or 3 cent per diluted share compared to net loss of $1.1 million or 6 cent per diluted share same period a year ago.

HealthSouth Corp. ((HLS)) rose 0.2% or 5 cent to $18.00 after the rehabilitative healthcare reaffirmed adjusted income from continuing operations to be in the range of $1.66 to $1.74.

MasterCard Incorporated ((MA)) increased 4.5% or $9.02 to $208.77 after the payment processor approved a share repurchase program for up to $1 billion of its Class A common stock. The company also expects net income to increase at least 20% in the current year.

Nucor Corporation ((NUE)) fell 0.4% or 18 cent to $39.23 after the steel products manufacturer said it expects to report a profit for the third quarter, compared to a loss last year. The company estimates earnings per share to be in the range of $0.05 to $0.10 per share.

According to the company, projected third-quarter results include an estimated LIFO charge of $67 million compared to charges of $24 million and $67 million in the first and second quarters of 2010, respectively, and a credit of $120 million in the third quarter of 2009.

NuVasive, Inc. ((NUVA)) slipped 0.8% or 29 cent to $32.71 after the medical device company updated its guidance for full year 2010, cutting the lower end of the previous guidance. Revenue for 2010 is anticipated to be between $485 million to $495 million; compared to previous guidance of $485 million to $500 million.

Pall Corporation ((PLL)) surged 8.4% or $3.22 to $41.25 after the filtration products maker said fourth quarter sales increased 4.1% to $678.61 million from $651.96 million in the same quarter last year. Net income in the quarter fell 21% to $55.0 million or 46 cents per diluted share, compared with net income of $69.5 million or 58 cents per share for the year-ago quarter.

Peerless Systems Corporation ((PRLS)) fell 0.3% or 1 cent to $3.19 after the company reported second quarter revenue declined to $0.8 billion compared to $2.1 billion for the same period a year ago. Net loss was $0.1 million or 1 cent per diluted share compared to net income of $2.0 million or 12 cent per diluted share in the same quarter a year ago.

Value Line, Inc ((VALU)) spurted 5% or 72 cent to $14.91 after the investment periodical publications reported fiscal first quarter revenue was $13.7 billion compared to $14.8 billion for the same period a year ago. Net income was $2.32 million or 23 cent per diluted share compared to net loss of $31.58 million or $3.16 per diluted share in the same quarter a year ago.

WPCS International Incorporated ((WPCS)) declined 2.2% or 7 cent to $3.06 after the design-build communications infrastructure said fiscal first quarter revenue rose 14% to $28.9 billion compared to $25.3 billion for the same period a year ago. Net loss was $0.37 million or 5 cent per diluted share compared to net income of $0.43 million or 6 cent per diluted share in the same quarter a year ago.