Apollo Group Plunges 10%; First Solar Rises 5%

Bikram Pandey
14 Oct, 2010
New York City

U.S. stocks traded lower. Educational services providers plunged after Apollo Group withdrew its 2011 outlook. The news dragged lower Corinthian Colleges, Washington Post Co., Strayer Education and ITT Educational Services.

[R]2:30 PM New York – U.S. stocks traded lower. Educational services providers plunged after Apollo Group withdrew its 2011 outlook. The news dragged lower Corinthian Colleges, Washington Post Co., Strayer Education and ITT Educational Services.[/R]

Of the stocks in the Dow, 11 increased, 19 decreased and none were unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, Verizon Communications Inc. led the gainers with a rise of 0.96% followed by increase in Intel Corporation of 0.78%, in Kraft Foods Inc. of 0.67%, in McDonald’s Corporation of 0.20%, International Business Machines Corporation of 0.19%.

Bank of America Corporation led the decliners with a fall of 3.61% followed by decline in JPMorgan Chase & Co. of 2.59%, in Wal-Mart Stores, Inc. of 1.06%, in Microsoft Corporation of 0.99%, in Chevron Corporation of 0.73%.

Education services providers fell sharply after Apollo Group, Inc withdrew its fiscal 2011 estimates. ITT Educational Services dropped 15%, Corinthian Colleges Inc plunged 16% and Education Management Corp fell 20%.

Other Movers

Apollo Group, Inc. ((APOL)) plunged 25.3% or $12.55 to $36.95 after the private education provider said fourth quarter net revenues rose 17.4% to $1.26 billion from $1.07 billion in the same quarter last year. Net income in the quarter fell 55% to $41.0 million or 28 cents per diluted share, compared to net income of $91.5 million or 59 cents per share for the year-ago quarter.

For the fiscal year 2010, net revenue increased 24.6% to $4.93 billion from $3.95 billion last year. The company reported net income for the fiscal year 2010 declined 8% to $553.0 million or $3.62 per share, compared to $598.3 million or $3.75 per share for the fiscal year 2009.

Bank of the Ozarks, Inc. ((OZRK)) rose 0.8% or 32 cent to $38.30 after the bank holding company reported third quarter net interest income increased 12.1% to $32.8 million from $29.2 million a year ago. Net income in the quarter soared 140% to $20.2 million or $1.19 per diluted share, compared to net income of $8.4 million or 50 cents per share for the year-ago quarter.

Charming Shoppes Inc ((CHRS)) dropped more than 16% to $3.63 after the apparel retailer said its chief executive has decided to resign.

Everest Re Group, Ltd. ((RE)) gained 0.5% or 48 cent to $84.45 after the insurance and reinsurance company said it expects third quarter net income, including net realized capital gains and losses, to be in the range of $2.95 to $3.20 per share.

Fairchild Semiconductor International ((FCS)) surged 5.1% or 49 cent to $9.94 after the semiconductor company said third quarter sales soared 25 % to $414.4 million, from $331.8 million in the comparable period. Net income in the quarter surged 1226% to $35.8 million or 28 cents per diluted share, compared to net income of $2.7 million or 2 cents per share a year ago.

First Solar Inc ((FSLR)) surged more than 5% to $144.84 after the company said it is looking to add two new plants and double its manufacturing capacity.

Landstar System, Inc. ((LSTR)) declined 3.7% or $1.44 to $37.48 after the provider of freight transportation services and supply chain solutions reported third quarter revenues increased 24.3% to $622.83 million, from $500.67 million in the prior-year quarter. Net income in the quarter advanced 8.5% to $21.8 million or 44 cents per diluted share, compared with net income of $20.1 million or 39 cents per share in the year-ago quarter.

Spansion Inc. ((CODE)) increased 2% or 35 cent to $17.40 after the semiconductor company raised its adjusted earnings outlook for the third quarter and tightened its adjusted sales guidance range. The company now estimates GAAP loss of $0.90 to $1.15 per share and GAAP net sales are expected in the range of $300 million to $310 million for the third quarter.

Spartan Stores, Inc. ((SPTN)) soared 6.2% or 95 cent to $16.15 after the grocery distributor and retailer reported second quarter net sales declined 1.3% to $602.05 million from $610.22 million in the comparable quarter last year. Net earnings in the quarter rose 7.7% to $11.2 million or 50 cents per diluted share, compared to net income of $10.4 million or 46 cents per share in the same quarter last year.

St. Joe Co. ((JOE)) dropped 8% to $19.99 after the Florida based land owner and real estate firm was cited by an activist investor that the company should stop building and take substantial asset impairment charges.

Syngenta AG ((SYT)) spurted 3.8% or $2.13 to $57.16 after the agribusiness company stated third quarter sales rose 10% to $2.2 billion from $2.0 billion a year ago. Total seeds sales also increased 8.9% to $442 million from $406 million a year ago.

Sierra Bancorp ((BSRR)) slipped 7.7% or $1.00 to $11.90 after the holding company said third quarter Interest income was $15.9 million compared to $17.0 million for the same period a year ago. Net income was $0.8 million or 8 cent per diluted share compared to net income of $0.1 million or 1 cent per diluted share in the same quarter a year ago.

The Progressive Corporation ((PGR)) fell 0.09% or 2 cent to $21.30 after the insurance holding company reported third quarter Net premiums earned 4% to $3,599.9 million compared to $3,445.4 million for the same period a year ago. Net income was $261.6 million or 40 cent per diluted share compared to net income of $269.9 million or 40 cent per diluted share in the same quarter a year ago.

TESSCO Technologies, Inc. ((TESS)) plunged 4.5% or 76 cent to $16.11 after the digital architect products maker reported second quarter revenue were $165.0 million compared to $141.9 million for the same period a year ago. Net income was $3.3 million or 43 cent per diluted share compared to net income of $2.1 million or 26 cent per diluted share in the same quarter a year ago.

Universal Forest Products, Inc. ((UFPI)) slumped 3.9% or $1.23 to $30.33 after the manufacturer and distributor of wood and wood-alternative products reported third quarter net sales rose 5% to $480.6 million, from net sales of $457.8 million in the same period of 2009. Net income in the quarter plunged 74% to $2.6 million or 13 cents per diluted share, compared to net income of $10.1 million or 51 cents per share in the same period last year.

Winnebago Industries, Inc. ((WGO)) decreased 3.3% or 37 cent to $10.80 after the manufacturer of motor homes fourth quarter revenues soared 107.1% to $123.12 million, versus $59.46 million for the fourth quarter of fiscal 2009. Net income generated in the quarter was $4.89 million or 17 cents per diluted share versus a net loss of $50.23 million or $1.73 per share last year.

W.W. Grainger, Inc. ((GWW)) declined 2.5% or $3.19 to $122.12 after the multi channel business model maker said third quarter sales increased 19% to $1.9 billion compared to $1.6 billion for the same period a year ago. Net earnings rose 4% to $151.3 million or $2.06 per diluted share compared to net earnings of $144.5 million or $1.88 per diluted share in the same quarter a year ago.

Winmark Corporation ((WINA)) rose 0.6% or 22 cent to $34.46 after the value-oriented retailer reported third quarter total revenue were $11.0 million compared to $9.8 million for the same period a year ago. Net income was $2.7 million or 51 cent per diluted share compared to net income of $1.8 million or 33 cent per diluted share in the same quarter a year ago.

Washington Post Co. ((WPO)) dropped more than 6% to $402.35 after Apollo Group withdrew its 2011 outlook.

Yahoo! Inc ((YHOO)) surged more than 4.5% after private equity firms are looking to team up with AOL Inc and mount a hostile takeover of the Internet portal.