LDK Solar, Conexant, Smith & News Rise; Strayer Plunges

Mukesh Buch
10 Jan, 2011
New York City

Acuity Brands first quarter sales increased 8.5% to $425.0 million. iGATE agree to acquire majority stake in Patni Computer Systems. PriceSmart first quarter total revenues increased 22.3% to $386.07 million. Playboy Enterprises Inc agreed to be taken private by founder Hugh Hefner.

[R]2:00 PM New York – Acuity Brands first quarter sales increased 8.5% to $425.0 million. iGATE agree to acquire majority stake in Patni Computer Systems. PriceSmart first quarter total revenues increased 22.3% to $386.07 million. Playboy Enterprises Inc agreed to be taken private by founder Hugh Hefner.[/R]

Of 30 the stocks in the Dow, 8 increased and 22 decreased.

Of the stocks in the Dow Jones Industrial Average, General Electric Company led the gainers with a rise of 0.76% followed by increase in Bank of America Corporation of 0.70%, in The Travelers Companies, Inc. of 0.38%, in Alcoa Inc. of 0.37% in Merck & Co., Inc. of 0.13%.

E. I. du Pont de Nemours and Company led the decliners with a fall of 3.60%, followed by decline in Microsoft Corporation of 1.89%, in AT&T Inc. of 1.70%, in United Technologies Corporation of 1.18%, in Cisco Systems, Inc. of 1.10%.

Other Movers

Acuity Brands, Inc. ((AYI)), the lighting fixtures, control devices provider fell 6.2% or $3.71 to $56.06 after first quarter sales increased 8.5% to $425.0 million from $391.7 million a year ago, even as the company stepped up promotional spending. Net earnings in the quarter rose 4.7% to $24.4 million or 56 cents per diluted share, compared to $23.3 million or 53 cents per share in the prior-year quarter.

AU Optronics Corp. ((AUO)) declined 2.2% to $9.74 after the Taiwanese manufacturer of thin film transistor liquid crystal display panels reported in the month of December, the consolidated revenue was NT$30.62 billion, compared to NT$36.84 billion last year. Revenues were down 17% from the previous month's revenues of NT$36.87 billion.

Conexant Systems Inc ((CNXT)) surged more than 14% to $2.16 after the maker of chip for next generation phones agreed to be acquired by Standard Microsystems Corp for $2.25.

DuPont Co ((DD)) declined 3.2% to $48.12 after it agreed to acquire Danish maker of enzymes Danisco A/S for $5.8 billion.

Helen of Troy Corporation ((HELE)) declined 2.7% to $30.71 after the personal care and household consumer product retailer reported third quarter net revenues increased 8.2% to $205.0 million from $189.4 million for the same quarter a year ago period. Net income in the quarter increased 13.2% to $27.06 million or 86 cent per diluted share compared to $24.73 million or 80 cent per share a year ago.

iGATE Corporation ((IGTE)) declined 1.9% to $18.79 after the offshore outsourcing service provider made agreements to acquire majority stake in Patni Computer Systems Ltd. ((PTI)), the Mumbai-based IT services and BPO company. The transaction valued at approximately $1.22 billion. The transaction expected to be completed by first half of 2011 and transaction to be accretive by 2012 on a cash earnings per share basis.

Intuit Inc. ((INTU)) declined 1.1% to $47.83 after the business software and services company reiterated its fiscal 2011 outlook. The company estimated operating income of $980 million to $1.015 billion, or $1.88 to $1.95 per share, and adjusted operating income of $1.215 billion to $1.25 billion, or $2.36 to $2.43 per share. Revenues are still estimated in the range of $3.74 billion to $3.84 billion.

LDK Solar Co., Ltd ((LDK)) soared 18% to $12.37 after the manufacturer of photovoltaic products estimates revenues in the range of $870 million to $910 million, wafer shipments of 615 megawatts to 620 megawatts and module shipments of 160 megawatts to 165 megawatts for the fourth quarter of 2010. U.S. defense budget regulator also permitted the purchase of solar panels from Chinese companies.

For fiscal 2011, LDK currently estimates revenue of $3.5 billion to $3.7 billion, wafer shipments of 2.7 gigawatts to 2.9 gigawatts and module shipments of 800 megawatts to 900 megawatts.

Playboy Enterprises Inc ((PLA)) soared 15% to $6.03 after the adult multimedia entertainment company agreed to be acquired by a private company controlled by founder Hugh M. Hefner for $6.15 a share or $207 million.

PriceSmart, Inc. ((PSMT)) fell 0.7% to $38.20 after the operator of membership warehouse shopping clubs said first quarter total revenues increased 22.3% to $386.07 million from $315.42 million last year. Net income in the quarter rose 43% to $14.85 million or 50 cents per diluted share, compared to net income of $10.38 million or 35 cents per share a year ago.

Robbins & Myers, Inc. ((RBN)) declined 0.05% to $41.16 after the diversified machinery company reported first quarter sales surged 27% to $164 million from $129.4 million last year. Net income in the quarter surged 144% to $14.7 million or 44 cents per diluted share, compared to net income of $6.03 million or 18 cents per share a year earlier.

Standard Microsystems Corporation ((SMSC)) declined 10% to $26.77 after the silicon-based integrated circuits and system designer said third quarter total net revenue rose 23% to $107.0 million from $87.2 million in the same quarter last year. Net loss in the quarter was $4.57 million or 20 cents per diluted share, compared to net income of $6.81 million or 30 cents per share for the year-ago quarter.

Smith & Nephew Plc ((SNN)) soared 10% to $56.27 after UK based Sky News reported that the company rejected 7 billion pound offer before Christmas.
Strayer Education Inc ((STRA)) plunged more than 20% to $120.35 after the company guided 2011 earnings of between $8.80 and $9 a share and the for-profit college said winter registration declined 20%.

Apollo Group Inc ((APOL)) dropped 20%, DeVry Inc ((DV)) fell 14%, Capella Education Co. ((CPLA)) declined 12% and Career Education Corp ((CECO)) sank 11%.