Adobe, NY Times, AMR Drop; CarMax Rises

Bikram Pandey
22 Sep, 2010
New York City

Adobe Systems plunged 20% after it reported lower than expected third quarter. CarMax Inc, the used car dealer jumped more than 7% after it reported higher than expected second quarter earnings. EBay Inc declined. AMR Corp dropped 8%.

[R]11:30 AM New York – Adobe Systems plunged 20% after it reported lower than expected third quarter. CarMax Inc, the used car dealer jumped more than 7% after it reported higher than expected second quarter earnings. EBay Inc declined. AMR Corp dropped 8%.[/R]

Of the stocks in the Dow, 23 increased, 7 decreased and none were unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, Alcoa Inc. led the gainers with a rise of 2.10% followed by increase in Johnson & Johnson of 0.73%, in Exxon Mobil Corporation of 0.71%, in Pfizer Inc. of 0.59%, Chevron Corporation of 0.56%.

Microsoft Corporation led the decliners with a fall of 1.84% followed by decline in Hewlett-Packard Company of 1.08%, in The Walt Disney Company of 0.61%, in Caterpillar Inc. of 0.60% and in Intel Corporation of 0.49%.

Other Movers

AMR Corp ((AMR)) declined more than 8% to $6.31 after the parent of American Airlines said its revenues increase in the third quarter will not exceed 11%.

Adobe Systems Incorporated ((ADBE)) plunged 20.3% or $6.69 to $26.25 after the diversified software company reported lower than expected third quarter revenue rose 42% to $990.32 million from $697.51 million in the same quarter last year. Net income in the quarter surged 69% to $230.1 million or 44 cents per diluted share, compared to net income of $136 million or 26 cents per share for the year-ago quarter.

Analogic Corporation ((ALOG)) soared 4.8% or $2.07 to $45.00 after the medical imaging and security system reported fiscal fourth quarter revenue increased 20% to $117.8 million compared to $98.3 million for the same period a year ago. Net income was $7.1 million or 56 cent per diluted share compared to net loss of $0.3 million or 2 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue gained 7% to $423.6 million compared to $396.1 million for the same period a year ago. Net income was $15.6 million or $1.23 per diluted share compared to net come of $3.7 million or 29 cent per diluted share same period a year ago.

CarMax Inc. ((KMX)) spurted 7.6% or $1.84 to $25.96 after the auto dealer reported second quarter net sales and operating revenues increased 13% to $2.34 billion from $2.08 billion in the second quarter of last year. Comparable store used unit sales increased 4% for the quarter. Net income in the quarter rose 4.8% to $107.9 million or 48 cents per diluted share, compared with net income of $103.0 million or 46 cents per share in the second quarter of fiscal 2010.

Cintas Corporation ((CTAS)) declined 2.2% or 62 cent to $27.26 after the uniforms and business service provider reported first quarter revenue increased 3.6% to $924 million from $891.6 million in the same quarter last year. Net income in the quarter advanced 13% to $61 million or 40 cents per diluted share compared with net income of $54 million or 35 cents per share in the prior-year quarter.

Darden Restaurants, Inc. ((DRI)) decreased 2.6% or $1.15 to $42.93 after the casual dining chain reported first quarter revenues increased 4.2% to $1.81 billion from $1.73 million in the prior-year quarter. Net income in the quarter increased 20% to $113.1 million or 80 cents per diluted share, compared to net income of $94.3 million or 67 cents per share in the year-ago quarter.

DaVita Inc. ((DVA)) fell 0.4% or 52 cent to $66.02 after the provider of dialysis services estimates third quarter earnings to be in the range of $1.11 to $1.14 per share, and operating income to be in the range of $254 million to $260 million.

General Mills, Inc. ((GIS)) increased 2.3% or 84 cent to $36.51 after the branded consumer foods maker stated first quarter net sales increased 1.4% to $3.53 billion, from $3.48 billion in the prior-year quarter. Net earnings in the quarter rose 12.2% to $472.1 million or 70 cents per diluted share, compared with net earnings of $420.6 million or 62 cents per share in the same quarter last year.

Jefferies Group, Inc ((JEF)) decreased 4.6% or $1.13 after the global securities and investment banking firm said third quarter revenue was $520 million compared to $700 million for the same period a year ago. Net income were $46 million or 23 cent per diluted share compared to net income of $86 million or 42 cent per diluted share period a year ago.

Life Partners Holdings, Inc. ((LPHI)) rose 0.6% or 11 cent to $17.10 after the financial services company reported second quarter revenue rose 4.1% to $30.3 million compared to $29.1 million for the same period a year ago. Net income was $8.1 million or 54 cent per diluted share compared to net income of $7.6 million or 51 cent per diluted share period a year ago.

Microsoft Corporation ((MSFT)) declined 2.3% or 61 cent to $24.54 after the software company approved a 23% increase in quarterly dividend and also authorized up to $6 billion in incremental commercial paper and longer-term debt.

Progress Software Corporation ((PRGS)) surged 6% or $1.83 to $31.78 after the supplier of application infrastructure software and services said third quarter revenue gained 8% to $128.7 million, from $119.4 million in the third quarter of fiscal year 2009. Net income in the quarter rose 67% to $9.2 million or 21 cents per diluted share compared with net income of $5.5 million or 13 cents per share in the same quarter a year ago.

PHC, Inc. ((PHC)) soared 4.9% or 6 cent to $1.32 after the national healthcare company reported fiscal fourth quarter net patient care revenue increased 21.9% to $13.2 million compared to $10.8 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 $0.2 million or 1 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue was $53.1 million compared to $46.4 million for the same period a year ago. Net income was $1.4 million or 7 cent per diluted share compared to net loss of $2.4 million or 12 cent per diluted share same period a year ago.

Skyworks Solutions, Inc. ((SWKS)) fell 0.4% or 8 cent to $19.67 after the chip maker raised its financial outlook for the fourth quarter of fiscal year 2010, citing broad-based improvements in order demand. The company anticipates revenue for the fourth quarter of $310 million, up from the previous guidance of $300 million and non-GAAP earnings per share of $0.40, compared to the prior forecast of $0.37.

The New York Times Company ((NYT)) plunged 3.5% or 28 cent to $7.67 after the diversified media company expects third quarter revenue fell 2% to 3%, Print advertising revenues may decline 5% but digital advertising revenue may rose 14%. Circulation revenues decrease approximately 5%.

The Company now expects diluted earnings per share are in the range of approximately 3 cents to5 cents a share.