U.S. Movers: Carnival, Red Hat, Walgreen, Nike

Mukesh Buch
22 Dec, 2010
New York City

Carnival fourth quarter revenues rose 7% to $3.50 billion. Humana completed acquisition of Concentra Inc. in $790 million. Nike, second quarter revenue increased 10% to $4.84 billion. Red Hat, third quarter total revenue increased 21%. Walgreen first quarter net sales increased 6% to $17.34 billion.

[R]10:30 AM New York – Carnival fourth quarter revenues increased 7% to $3.50 billion. Humana completed acquisition of Concentra Inc. in $790 million. Nike, second quarter revenues increased 10% to $4.84 billion. Red Hat, third quarter total revenues increased 21%. Walgreen, first quarter net sales increased 6% to $17.34 billion.[/R]

Of the stocks in the Dow, 13 increased, 16 decreased and 1 were unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, Bank of America Corporation led the gainers with a rise of 1.08% followed by increase in JPMorgan Chase & Co. of 1.00%, in Microsoft Corporation of 0.93%, in The Boeing Company of 0.59%, in Alcoa Inc. of 0.54%.

Intel Corporation led the decliners with a fall of 0.76%, followed by decline in 3M Company of 0.55%, in Wal-Mart Stores, Inc. of 0.45%, in Hewlett-Packard Company of 0.38%, in The Travelers Companies, Inc of 0.38%.

Other Movers

American Greetings Corporation ((AM)) surged 6.1% or $1.35 to $23.33 after the giftware maker reported third quarter revenues decreased 10% from a year ago to $430.14 million compared to $440.17 million. Net income in the quarter rose to $32.16 million or 78 cents per diluted share compared to $29.69 million or 75 cents per share for the year-ago quarter.

Carnival Corporation ((CCL)) gained 3.6% or $1.65 to $46.83 after the cruise operator reported fourth quarter revenues increased 7% to $3.50 billion from $3.28 billion in the same quarter last year. Net earnings in the quarter soared 28.5% to $248 million or 31 cents per diluted share, compared to of $193 million or 24 cents per share in the prior-year period.

For fiscal year 2010, revenues grew 7.4% to $14.5 billion from $13.5 billion in the previous year. Net income for the full year rose 11.1% to $2.0 billion or $2.47 per share, compared to $1.8 billion or $2.24 per share in the prior year.

Cintas Corporation ((CTAS)) fell 0.4% or 15 cents to $29.05 after the business services company said second quarter revenue grew 5.9% to $936.5 million from $884.5 million in the same quarter a year ago. Net income in the quarter fell 2.3% to $55.8 million from $57.17 million last year. However, on a per share basis, earnings rose to $0.38 from or $0.37, reflecting lower share count for the quarter.

Humana Inc. ((HUM)) increased 1.6% or 89 cents to $55.66 after the health and supplemental benefits company completed acquisition of Concentra Inc., a privately held health care company based in Texas for approximately $790 million in cash.

Humana''s expect consolidated revenues for the year ending December 31, 2011 increase by approximately $800 million in connection with this transaction and consolidated earnings per diluted common share for the year ending December 31, 2011 of $5.45 to $5.65.

Hovnanian Enterprises, Inc. ((HOV)) declined 3.4% or 15 cents to $4.21 after the home builder reported fourth quarter total revenues dropped 19.3% to $353.01 million from $437.39 million in the same quarter a year ago. Net loss in the quarter narrowed 47.3% to $132.11 million or $1.68 per share, compared to $250.76 million or $3.21 per share in the year-ago quarter.

For the full year, total revenues decreased 14% to $1.37 billion from $1.59 billion in the prior year. Net income generated for the full year was $2.58 million or $0.03 per share, compared with a net loss of $716.71 million or $9.16 per share in the prior year.

Jacobs Engineering Group Inc. ((JEC)) soared 7% or $3.12 to $47.27 after the engineering company agreed to acquire a business unit of Norway based Aker Solutions ASA.

The cash purchase price is estimated to be $675 million, adjusted for cash and debt acquired and it is expected to close in the second quarter of fiscal 2011.

Lindsay Corporation ((LNN)) plunged 4.6% or $3.11 to $64.44 after the irrigation system maker said first quarter net sales rose 4% to $89.2 million from $86.0 million in the same quarter last year. Net earnings in the quarter were $4.3 million or 34 cents per diluted share, compared to $6.7 million or 53 cents per share in the prior year quarter.

Navistar International Corporation ((NAV)) decreased 1.5% or 91 cents to $58.26 after the trucks and other vehicles maker reported fourth quarter sales and revenues rose 2.4% to $3.37 billion, from $3.29 billion last year. Net income in the quarter declined 55% to $39 million or 54 cents per diluted share, compared to $86 million or $1.19 per share a year ago.

For the full year, total revenues increased to $12.14 billion from $11.57 billion in the prior year. Net income for the full year was $223 million or $3.05 per diluted share, compared to $320 million or $4.46 per share in the prior year.

Nike, Inc. ((NKE)) tumbled 5.7% or $5.27 to $87.03 after the maker of athletic shoes and apparel said second quarter revenues increased 10% to $4.84 billion from $4.41 billion in the same quarter last year. Net income in the quarter rose 22% to $457 million or 94 cents per diluted share, compared to $375 million or 76 cents per share for the year-ago quarter.

Park Electrochemical Corp ((PKE)) slumped 4.9% or $1.50 to $29.12 after third quarter revenues increased to $46.9 million from $46.1 million in the same quarter last year. Net earnings in the quarter fell to $5.0 million or 24 cents per diluted share, compared to $7.2 million or 35 cents per share for the year ago quarter.

Red Hat, Inc. ((RHT)) slipped 3.4% or $1.63 to $46.25 after the open source software solutions provider reported third quarter total revenues increased 21% to $235.58 million from $194.35 million last year. Net income in the quarter surged 59% to $26.02 million or 13 cents per diluted share compared to $16.41 million or 8 cents per share in the previous year.

Walgreen Company ((WAG)) surged 7.1% or $2.64 to $39.47 after the drugstore chain operator first quarter net sales rose 6% to a record $17.34 billion from $16.36 billion in the same quarter last year. Net earnings in the quarter increased 19% to $580 million or 62 cents per diluted share, compared to $489 million or 49 cents per share in the prior-year quarter.

Walter Energy, Inc. ((WLT)) rose 0.3% or 43 cents to $121.20 after the metallurgical coal producer announced that it has acquired assets of Mobile River Terminal Co. in Mobile, Ala. from a subsidiary of U. S. Steel. Terms of the acquisition were not disclosed.