U.S. Movers: Benchmark Electronics, Cliffs, Endo, Level 3, QuickLogic

Mukesh Buch
11 Apr, 2011
New York City

Benchmark Electronics lowered first quarter guidance sales to be of $540 million. Cliffs receive cash payment of as much as $270 million after price settlement with ArcelorMittal. Endo Pharmaceutical agreed to acquire American Medical Systems for $2.9 Billion in cash. Shaw Group net income fell 98%.

[R]10:30 AM New York – Benchmark Electronics lowered first quarter guidance sales to be of $540 million. Cliffs receive cash payment of as much as $270 million after price settlement with ArcelorMittal. Endo Pharmaceuticals agreed to acquire American Medical Systems for $2.9 Billion in cash. Shaw Group second quarter net income plunged 98% to $1.20 million.[/R]

Of 30 the stocks in the Dow, 25 increased and 5 decreased.

Of the stocks in the Dow Jones Industrial Average, 3M Company led the gainers with a rise of 1.46% followed by increase in The Travelers Companies, Inc. of 1.44%, in American Express Company of 1.27%, in Alcoa Inc. of 1.23%, in Pfizer Inc. of 1.05%.

Caterpillar Inc led the decliners with a fall of 0.59%, followed by decline in Cisco Systems, Inc. of 0.52%, in International Business Machines Corporation of 0.35%, in The Walt Disney Company of 0.14%, in Exxon Mobil Corporation of 0.02%.

Other Movers

Benchmark Electronics, Inc. ((BHE)) declined 4.5% or 84 cents to $17.57 after the electronic manufacturing service provider lowered its guidance for the first quarter and now expected sales to be of $540 million. However, the company expects to rebound the sales decline by second quarter of 2011.

Cliffs Natural Resources Inc. ((CLF)) rose 0.6% or 67 cents to $99.37 the mining and natural resources company will receive cash payment of approximately $250 million to $270 million after settlement with ArcelorMittal USA Inc., and related parties about price re-opener entitlements for 2009 and 2010 and pellet nominations for 2010 and 2011.

Endo Pharmaceuticals Holdings Inc. ((ENDP)) surged 5.6% or $2.30 to $43.15 after the specialty pharmaceutical company agreed to acquire American Medical Systems Holdings, Inc. ((AMMD)) for $2.9 Billion in cash for $30 per share. The transaction expected to close late in the third quarter of 2011.

Endo also reiterated its revenue guidance of 2011 in between of $2.35 to $2.45 billion and estimates reported (GAAP) diluted earnings per share to be between $2.43 and $2.53 per share.

Level 3 Communications, Inc ((LVLT)) soared 11.8% or 17 cents to $1.61 after communication agreed to acquire Global Crossing Limited, the Bermuda based communications solutions provider. The transaction valued $23.04 per Global Crossing common or preferred share or approximately $3.0 billion. Total deal valued about $1.9 billion.

NYSE Euronext ((NYX)) decreased 1.8% or 67 cents to $38.04 after the trading technology provider said Board of Directors rejected the unsolicited and highly conditional proposal by NASDAQ OMX ((NDAQ)) and InterContinentalExchange, Inc. ((ICE)) to break up NYSE Euronext.

QuickLogic Corporation ((QUIK)) tumbled 16.8% or 82 cents to $4.05 after the software company expects to report first quarter revenue of approximately $5.5 million compared to earlier announce of approximately $6.8 million.

Regis Corporation ((RGS)) fell 0.05% or 1 cent to $18.49 after an operator of hair care salons reported third quarter revenue declined 1.1% to $581 million compared with $588 million a year ago, along with a 2.3% reduction in same-store sales, as cold weather and a shift in Easter holidays adversely impacted store traffic.

ScanSource, Inc. ((SCSC)) fell 0.8% or 30 cents to $35.91 after the distributor of specialty technology products forecast third quarter sales to be in the range of $608 million to $617 million from the prior range of $630 million to $650 million.

The Shaw Group Inc ((SHAW)) slipped 1.3% or 48 cents to $34.97 after the engineering service provider reported second quarter total revenues dropped 12.3% to $1.42 billion from $1.62 billion in the same quarter last year. Net income in the quarter plummeted 98% to $1.20 million or 1 cent per diluted share compared to net income of $61.51 million or 72 cents per share in the prior-year quarter.