Rackspace, Monsanto, VMware Fall

Bikram Pandey
06 Oct, 2010
New York City

Acuity Brands surges more than 8% after quarterly sales increased 5%. Monsanto Company increases 2.5% after quarterly sales increase and net loss narrows. Diamond Foods Inc plunges 8% after income gained less than expected.

[R]1:20 PM New York – Acuity Brands surges more than 8% after quarterly sales increased 5%. Monsanto Company increases 2.5% after quarterly sales increase and net loss narrows. Diamond Foods Inc plunges 8% after income gained less than expected.[/R]

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

Of the 30 stocks in the Dow Jones Industrial Average, General Electric Company led the gainers with a rise of 2.67% followed by increase in Alcoa Inc. of 2.06%, in Wal-Mart Stores, Inc. of 0.93%, in Cisco Systems, Inc. of 0.84%, Pfizer Inc. of 0.63%.

AT&T Inc. led the decliners with a fall of 1.98% followed by decline in Verizon Communications Inc. of 1.61%, in Bank of America Corporation of 0.59%, in The Travelers Companies, Inc. of 0.42%, in The Home Depot, Inc. of 0.41%.

Other Movers

Data centric services providers fell sharply after the Internet hosting data center manager Equinix, Inc lowered its revenues outlook. Citrix Systems, Rackspace Hosting Inc, Terremark Worldwide Inc and Akamai Technologies Inc dropped in sympathy.

AnnTaylor Stores Corp ((ANN)) decreased 1.6% or 34 cent to $20.55 after the specialty retailer was downgraded by a broker.

Acuity Brands, Inc ((AYI)) surged 8.2% or $3.68 to $48.14 after the lighting fixture reported fiscal fourth quarter net sales increased 5% to $444.1 million compared to $422.6 million for the same period a year ago. Net income was $27.2 million or 62 cent per diluted share compared to net income of $29.1 million or 66 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue fell 2% to $1,626.9 million compared to $1,657.4 million for the same period a year ago. Net income was $79.6 million or $1.80 per diluted share compared to net come of $84.9 million or $2.00 per diluted share same period a year ago.

American Superconductor Corporation ((AMSC)) gained 2.4% or 82 cent to $34.25.

Citrix Systems, Inc ((CTXS)) declined 8.9% or $6.30 to $63.70.

Diamond Foods Inc ((DMND)) plunged 8.8% or $3.75 to $38.70 after the nuts and snack retailer said fiscal fourth quarter net sales gained 81% to $176.6 million compared to $113.8 million for the same period a year ago. Net income increased 60% to $6.7 million or 30 cent per diluted share compared to net income of $4.2 million or 25 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue rose 23% to $680.1 million compared to $570.9 million for the same period a year ago. Net income increased 10% to $26.2 million or $1.36 per diluted share compared to net come of $23.7 million or $1.42 per diluted share same period a year ago.

Digital Realty Trust, Inc ((DLR)) plunged 4.3% or $2.73 to $59.54 after the real estate firm


Equinix, Inc ((EQIX)) slipped 29.2% or $30.74 to $74.35 after the data center services after the Internet data centers operator said third quarter revenues will not exceed $330 million.

General Maritime Corp ((GMR)) decreased 4.9% or 23 cent to $4.42 after the seaborne crude oil transporter announced the amendment to the loan facility waived the requirement of offering to raise 40% purchase price of seven vessels in less than a year. The company also entered into a bridge loan of $22.8 million with Nordea Bank Finland and DnB NOR.

Itron Inc ((ITRI)) increased 2.5% or $1.55 to $62.41.

Massey Energy Co ((MEE)) increased more than 4% after a rating upgrade and the recent dollar weakness prompted better outlook for exports to China and other Asian markets.

Maidenform Brands Inc ((MFB)) plunged 6.9% or $1.99 to $26.68 after the women’s foundation garments maker rating was lowered by BB&T Corp.

Monsanto Co. ((MON)), increased 2.5% to $49.69 after the agricultural products maker said fourth quarter net sales increased 4% to $1.95 billion from $1.88 billion in the prior-year quarter. Net loss in the quarter narrowed 39% to $143 million or 26 cents per share compared to a net loss of $233 million or 43 cents per share in the year-ago period.

Rackspace Hosting, Inc ((RAX)) slumped 8.5% or $2.25 to $23.96 after the cloud computing firm

Team Inc ((TISI)) soared 4.2% or 76 cent to $18.66 after the specialty maintenance and construction provider reported first quarter revenue increased 4% to $104.5 million from $100.9 million last year. Net income was $3.8 million or 20 cents per diluted share compared to a net income of $1.1 million or 6 cents per share a year ago.

VMware, Inc ((VMW)) declined 7% to $79.56 ahead of earnings on October 18.

Walgreen Company ((WAG)), the drugstore chain declined 1 cent to $33.97 after it announced sales results for the month of September. Monthly same store sales increased 0.4% and a 5.3% increase in total sales.

Yum! Brands, Inc. ((YUM)) rose 0.9% or 46 cent to $47.25 after the quick service restaurant stated third quarter revenue increased 3% to $2496 million from $2432 million last year. Net income rose 7% to $357 million or 74 cents per diluted share compared to a net income of $334 million or 69 cents per share a year ago.