U.S. Movers: Cintas, Delphi Financial, Expedia, Nike, Oracle

Devan Biswas
21 Dec, 2011
New York City

Enterprise technology stocks were on the decline after Oracle reported weaker than expected earnings. IBM, EMC and SAP dropped more than 4%. Expedia Inc increased 3% after it completed the spinoff of travel message board operator TripAdvisor Inc. Nike jumped 3% on better than expected earnings.

[R]12:10 PM New York – Enterprise technology stocks were on the decline after Oracle reported weaker than expected earnings. IBM, EMC and SAP dropped more than 4%. Expedia Inc increased 3% after it completed the spinoff of travel message board operator TripAdvisor Inc. Nike jumped after it reported better than expected earnings.[/R]

CarMax, Inc. ((KMX)) declined 7% to $28.90 after the retailer of used cars said third quarter net sales and operating revenues rose 7% to $2.26 billion from $2.12 billion in the year-ago quarter. Analysts were looking for earnings per share in the quarter of at least 36 cents.

Comparable store used unit sales declined 3% in the third quarter compared to a 16% increase in the prior year period. Net income in the quarter rose marginally 0.5% to $82.8 million or 36 cents per diluted share compared to net income of $82.4 million or 36 cents per share last year.

Cintas Corp ((CTAS)) gained 8.5% or $2.65 to $33.93 after the cleaning supplies provider revised its annual earnings forecast to at least $21.6 a share.

Revenues in the fiscal quarter ending in November increased 8% to $1.02 billion and net income gained 33% to $74.4 million and earnings per share rose to 57 cents compared to 38 cents a quarter ago.

CommVault Systems, Inc ((CVLT)) dropped 16.5% to $38.68 after Oracle reported weaker than expected earnings on the fears that enterprise spending on technology may be weaker than expected.

The Oracle earnings news also dragged IBM down more than 3%, Teradata Corp 11%, SAP AG fell 6% and EMC declined 4%.

Delphi Financial Group ((DFG)) soared 72% or $18.49 to $43.92 after the workers compensation and group life insurer agreed to be acquired by Tokio Marine Holdings Inc for $2.7 billion in cash.

Emerson Electric Co ((EMR)) fell $2.65 to $47.02 after the electric products maker said sales for the quarter ending in December sales to decline between 3% and 5% compared to a year ago and the company reiterated 2012 sales to increase between 4% and 6% and earnings per share to jump between 8% and 12%.

The company blamed the weakness in sales in the uncertainty in the telecom sector spending and supply chain disruptions linked to floods in Thailand.

Nike, Inc. ((NKE)) soared $3.21 to $96.84 after the sportswear maker reported second quarter revenues grew 18% to $5.731 billion from $4.842 billion in the year-ago quarter. Net income rose 3% to $469 million or $1 per diluted share compared to net income of $457 million or 94 cents per share last year,

Oracle Corporation ((ORCL)) plunged 14% to $25.21 after the software maker said second quarter revenue rose 2% to $8.79 billion from $8.58 billion a year ago. Net income in the quarter increased 17% to $2.19 billion or 43 cents per diluted share compared to net income of $1.87 billion or 37 cents per share for the year-ago quarter.

Expedia Inc ((EXPE)) increased 3% to $28.04 after the online travel agency completed the spinoff of its travel message board operator TripAdvisor Inc and began trading on Nasdaq today.

TripAdvisor, Inc ((TRIPV)) traded at $28.66.

Research in Motion Limited ((RIM))) jumped 10% to $13.78 on the speculation in the media that Microsoft and Nokia considered bidding for the company. The spokesperson at RiM, Nokia and Microsoft declined to discuss the merger speculation.

Walgreen Company ((WAG)) declined 5.2% or $1.76 to $31.74 after the pharmacy retailer said first quarter net sales climbed 5% to $18.16 billion from $17.34 billion in the year earlier period.

Net earnings in the quarter decreased 4.5% to $554 million compared with net earnings of $580 million in the same quarter a year ago. However, quarterly net earnings per diluted share improved to 63 cents from 62 cents a year earlier.