U.S. Movers: Adtran, Capital One, Kinetic, NovaGold

Mukesh Buch
13 Jul, 2011
New York City

Adtran second quarter net income rose. Capital One second quarter net income surged to $911 million. Kinetic Concepts acquired by consortium valued at $6.3 billion. Validus Holdings agreed to acquire Transatlantic for $55.95 a share.

[R]12:05 PM New York – Adtran second quarter net income rose. Capital One second quarter net income surged to $911 million. Kinetic Concepts acquired by consortium valued at $6.3 billion. Validus Holdings agreed to acquire Transatlantic for $55.95 a share.[/R]

All 30 components of the Dow Jones Industrial Average increased.

Of the stocks in the Dow Jones Industrial Average, Caterpillar Inc. led the gainers with a rise of 2.90% followed by increase in General Electric Company of 2.07%, in JPMorgan Chase & Co. of 1.98%, in Alcoa Inc. of 1.97%, in Chevron Corporation of 1.97%.

Other Movers

Adtran, Inc. ((ADTN)) decreased 5.3% or $2.12 to $38.01 after the communications network solution provider reported second quarter sales increased 23% to $184.2 million from $150.4 million in the same quarter last year. Net income in the quarter rose 33% to $36.9 million or 56 cents per diluted share compared to $27.7 million or 44 cents per share a year earlier.

ASML Holding N.V. ((ASML)) increased 1.3% or 48 cents to $35.36 after the Netherlands based holding company reported second quarter net sales surged 45.1% to 1,529.4 million euros compared to 1,068.7 million euros in the same quarter last year.

Net income in the quarter soared 28.3% to 432.1 million euros or 1 euro per diluted share compared to 239 million euros or 54 euro cents per share a year ago.

Capital One Financial Corporation ((COF)) fell 0.8% or 44 cents to $51.80 after the financial service holding company total revenues fell 2% to $4.0 billion from $3.9 billion in the same quarter last year. Net income in the quarter surged to $911 million or $1.97 per diluted share compared to $608 million or $1.33 per share a year ago.

Healthcare Services Group, Inc. ((HCSG)) slipped 3% or 54 cents to $17.03 after the maintenance and dietary service provider said second quarter revenues rose 10% to $211.5 million from $192.9 million in the same quarter last year. Net income in the quarter increased 13% to $9.8 million or 15 cents per diluted share compared to $8.7 million or 13 cents per share a year earlier.

Kinetic Concepts, Inc. ((KCI)) advanced 5.5% or $3.58 to $68.07 after the medical technology company agreement to be acquired by consortium comprised of funds advised by Apax Partners together with controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board will acquire KCI for $68.50 per share in cash in transaction valued at $6.3 billion The transaction is expected to close in second half of 2011.

NovaGold Resources Inc. ((NG)) increased 4.8% or 48 cents to $10.39 after the Canada based precious metals company reported second quarter total revenue surged to $766 million from $192 million in the same quarter last year. Net loss in the quarter narrowed to $10.6 million or 3 cents per diluted share compared to $16.8 million or 7 cents per share a year earlier.

Validus Holdings, Ltd. ((VR)) slumped 9.1% or $2.81 to $28.00 after the reinsurance company proposal to merge with Transatlantic Holdings, Inc. ((TRH)). Transatlantic stockholders would receive 1.5564 Validus common shares and $8 in cash per share, Validus'' proposal would provide total consideration of $55.95 a Transatlantic share.