U.S. Movers: Ciena, Kronos, LVMH, Sasol, Western Digital

Mukesh Buch
07 Mar, 2011
New York City

Ciena first quarter net loss widened to $79.0 million. Kronos fourth quarter net income of $36.4 million. LVMH agreed to take control of Bulgari SpA. New Gold fourth quarter net earnings surged to $72.8 million. Shenandoah fourth quarter net income in the quarter plunged.

[R]10:30 AM New York – Ciena first quarter net loss widened to $79.0 million. Kronos fourth quarter net income of $36.4 million. LVMH agreed to take control of Bulgari SpA. New Gold fourth quarter net earnings surged to $72.8 million. Shenandoah fourth quarter net income in the quarter plunged.[/R]

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

Of the stocks in the Dow Jones Industrial Average, American Express Company led the gainers with a rise of 1.60% followed by increase in McDonald’s Corporation of 1.14%, in Microsoft Corporation of 1.07%, in 3M Company of 0.94%, in The Home Depot, Inc. of 0.94%.

Cisco Systems, Inc. led the decliners with a fall of 0.69%, followed by decline in Intel Corporation of 0.55%, in Pfizer Inc. of 0.51%, in Johnson & Johnson of 0.43%, in Merck & Co. Inc. of 0.39%.

Other Movers

Accuray Inc ((ARAY)) tumbled 10.3% or $1.04 cents to $8.97 after the robotic radio-surgery system maker agreed to acquire TomoTherapy Inc ((TOMO)) the radiation therapy product maker for $4.80 per share in cash and stock, or a total of approximately $277 million. The combined company will have an installed base of more than 550 units in 32 countries. Revenue of the combined of two companies in calendar year 2010 exceed $400 million.

Under the terms TomoTherapy shareholders will receive $3.15 in cash and 0.1648 shares of Accuray. The acquisition is expected to be accretive to Accuray earnings per share in fiscal year beginning July 1, 2012.

Shares of TomoTherapy Inc rose 23.9% or 87 cents to $4.54.

Ciena Corporation ((CIEN)) declined 5.6% or $1.63 to $27.18 after the communications networking equipment provider reported first quarter revenue surged to $433.31 million from $175.88 million a year ago. Net loss for the quarter widened to $79.0 million or 84 cents per diluted share compared to $53.3 million or 58 cents per share in the previous year.

Cowen Group, Inc. ((COWN)) rose 0.01% or 1 cent to $4.09 after the investment bank said fourth quarter revenue edged up to $69.73 million from $69.68 million last year. Net income in the quarter increased to $4.11 million or 6 cents per share compared to net loss of $23.39 million or 46 cents per share a year ago.

Kronos Worldwide, Inc. ((KRO)) increased 1.1% or 60 cents to $52.81 after the titanium dioxide pigment maker reported fourth quarter net sales surged to $373.9 million from $301.9 million last year. Net income in the quarter was to $36.4 million or 66 cents per share compared to net loss of $5.1 million or 11 cents per share a year ago.

For the full year net sales increased to $1.45 billion from $1.14 billion a prior year. Net income for the year was $130.6 million or $2.59 per diluted share compared to net loss of $34.7 million or $0.71 per diluted share a year ago.

LVMH ((LVMH)), the luxury retailer agreed to take control of Italy based Bulgari SpA. Upon completion of the share transfer process, LVMH will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares.

After completion of legal formalities with Italian Stock Exchange, LVMH will submit Public Purchase Offer at the price of €12.25 per share held by minority stockholders. Paolo and Nicola Bulgari will remain Chairman and Vice Chairman of the Bulgari S.p.A. Crédit Agricole Corporate Investment Bank and Crédit Suisse, respectively assisted to LVMH and the Bulgari. It is expected procedures may complete between the end of May and end of June 2011.

Shares of Bulgari SpA rose by 59%.

Madison Square Garden, Inc ((MSG)) rose 0.3% or 9 cents to $28.19 after the sports, entertainment, and media company reported fourth quarter revenues grew 5% to $432.67 million from the prior year''s $412.0 million, primarily reflecting an increase in revenues in the company''s MSG Media and MSG Sports segments. Net income in the quarter increased 40% to $32.72 million or 42 cents per diluted share compared to net income of $23.39 million or 32 cents per share in the previous year.

For the full year revenue increased 8.9% to $1.16 billion from $1.06 billion a prior year. Net income soared to $83.38 million or $1.09 per diluted share compared to $27.65 million or $0.38 per diluted share a year ago.

MCG Capital Corporation ((MCGC)) slipped 2.1% or 15 cents to $6.69 after the asset manager said fourth quarter revenues fell 0.8% to $23.5 million compared to $23.7 million a year earlier. Net loss in the quarter was $17.75 million or 23 cents per diluted share compared to net profit of $1.56 million or 2 cents per share a year earlier.

New Gold Inc. ((NGD)) gained 2.4% or 26 cents to $10.98 the Canada based gold producer reported fourth quarter consolidated revenue increased to $189 million from $132 million last year. Net earnings in the quarter surged to $72.8 million or 18 cents per share compared to net loss of $7.6 million or 2 cents per share a year ago.

For the full year revenue increased to $530.4 million from $323.8 million a prior year. Net earnings soared to $176.9 million or 45 cents per diluted share compared to net loss of $28.8 million or 4 cents per diluted share a year ago.

PDL BioPharma Inc. ((PDLI)) increased 1% or 6 cents to $5.73 after the company engaged in the management of its antibody humanization patents and royalty assets announced revenue guidance for the first quarter ending March 31 of around $83 million, as compared with actual results of $62 million for the first quarter of 2010.

Shenandoah Telecommunications Company ((SHEN)) fell 0.6% or 10 cents to $16.70 after the telecommunication holding company said fourth quarter revenue soared 44% to $57.9 million from $40.2 million last year. Net income in the quarter plunged to $2.71 million or 11 cents per share compared to $6.26 million or 26 cents per share a year ago.

Sasol Limited ((SSL)) rose 0.9% or 51 cents $56.44 after the South Africa based integrated energy and chemicals company reported first-half turnover grew 16% to 67.23 billion rands from 58.07 billion rands in the prior year. Profit for the half year increased 21% to 7.6 billion rands or 12.69 rands per share from 6.3 billion rands or 10.57 rands per share last year, helped by higher prices for crude oil and chemical products.

Western Digital Corporation ((WDC)) surged 15.7% or $4.72 to $34.72 after the computer hard drive maker today reached an agreement to acquire Hitachi Global Storage Technologies, a wholly-owned subsidiary of Hitachi, Ltd., in cash and stock valued approx at $4.3 billion.

Under the terms, WD will acquire Hitachi GST for $3.5 billion in cash and 25 million in common shares of WD’s valued at $750 million. WD expects the transaction to be immediately accretive to its earnings per share on a non-GAAP basis.