U.S. Movers: American Greetings, Family Dollar, Paychex, Worthington

Mukesh Buch
28 Jun, 2012
New York City

Healthcare insurers dropped sharply after the Supreme Court upheld the healthcare reform. American Greetings first quarter net tumbled 78%. Family Dollar third quarter net increased 5.3% to $124.5 million and lifted fiscal outlook. Paychex fourth quarter net increased 4%.

[R]11:10 AM New York – Healthcare insurers dropped sharply after the Supreme Court upheld the healthcare reform. American Greetings first quarter net tumbled 78%. Family Dollar third quarter net increased 5.3% to $124.5 million and lifted fiscal outlook. Paychex fourth quarter net increased 4%.[/R]

Healthcare insurers were sharply lower after the Supreme Court ruled in favor of Obama healthcare reform and upheld by a 5-4 vote the individual mandate.

Aetna Inc ((AET)) dropped 4% to $39.35, United Health Group ((UNH)) dropped 3% to $57.61, Cigna Corp ((CI)) dropped 3.5% to $43.81, Humana Inc ((HUM)) dropped 2.8% to $77.38 and WellPoint, Inc plunged 6% to $65.59.

Drug makers and medical devices makers were generally lower. Johnson & Johnson, Pfizer, GlaxoSmithKline and Merck declined between 0.5% and 1.2%.

American Greetings Corporation ((AM)) rose 5 cents to $14.31 after the greeting cards maker reported total revenue in the first quarter ending on May 25 fell 3% to $393.1 million compared to $403.7 million in the same period last year. Net earnings in the quarter tumbled 78% to $7.3 million or 20 cents per diluted share compared to $32.6 million or 78 cents per share a year ago earlier.

CoreLogic, Inc. ((CLGX)) increased 3.7% or 65 cents to $18.05 after the provider of financial, property and consumer information raised its 2012 outlook and estimated full-year revenue between $1.45 billion and $1.48 billion and adjusted earnings per share in the range of $1.15 to $1.20.

Family Dollar Stores, Inc. ((FDO)) slumped 3.6% or $2.54 to $66.59 after the retail discount stores operator reported net sales in the third quarter ending on May 26 grew 9.6% to $2.36 billion compared to $2.15 billion in the same period last year. Comparable store sales increased 5%.

Net income in the quarter increased 5.3% to $124.5 million or $1.06 per diluted share compared to $111.1 million or 91 cents per share a year ago.

For the fourth quarter the stores operator expects comparable store sales will grew in the range of 5% to 7% and earnings per share will increase between 71 cents and 81 cents and for the full year will be between $3.60 and $3.70. For the full year net sales increase between 9% and 10%

Herman Miller, Inc. ((MLHR)) gained 2.9% or 49 cents to $17.22 after the furniture and fixtures maker reported net sales in the fourth quarter ending on June 2 decreased 4.7% to $420.7 million compared to $441.5 million in the same period last year. Net earnings in the quarter declined 32% to $11.7 million or 20 cents per diluted share compared to $17.1 million or 30 cents per share a year ago earlier.

MSC Industrial Direct Co., Inc. ((MSM)) advanced 4.7% or $2.95 to $65.37 after the metalwork distributor reported net sales in the third quarter ending on May 26 soared 15% to $612.0 million compared to $532.4 million in the same period last year. Net income in the quarter increased 13% to $70.2 million or $1.10 per diluted share compared to $62.1 million or 97 cents per share a year ago.

Omnova Solutions Inc. ((OMN)) slipped 3.7% or 29 cents to $7.38 after the emulsion polymers provider reported net sales in the second quarter ending in May decreased 1.7% to $307.5 million compared to $312.8 million in the same period last year. Net income in the quarter surged 13% to $7.0 million or 15 cents per diluted share compared to $6.2 million or 14 cents per share a year ago period.

Paychex, Inc. ((PAYX)) slid 2.7% or 89 cents to $31.05 after the outsourcing solution provider reported total revenues in the fourth quarter ending in May grew 6% to $551.5 million compared to $522.7 million in the same period last year. Net income in the quarter increased 4% to $123.3 million or 34 cents per diluted share compared to $118.9 million or 33 cents per share a year ago.

Progress Software Corporation ((PRGS)) fell 1.5% or 30 cents to $19.60 after the enterprise software maker reported revenue in the second quarter ending in May declined 15% to $114.6 million compared to $134.7 million in the same period last year. Net loss in the quarter swung to $1.9 million or 3 cents per diluted share compared to net income of $18.2 million or 15 cents per share a year ago quarter.

Shaw Communications Inc. ((SJR)) decreased 1.3% or 26 cents to $18.65 after the Canadian communications company reported total revenues in the third quarter ending in May nearly flat to $1.28 billion compared to in the same period last year. Net income in the quarter soared 23% to $248 million or 53 cents per diluted share compared to $201 million or 45 cents per share a year ago.

Schnitzer Steel Industries, Inc. ((SCHN)) increased 1% or 26 cents to $25.15 after the metal scrap recycler reported total revenues in the third quarter ending in May slumped 10% to $879.9 million compared to $981.1 million in the same period last year. Net income in the quarter declined 66% to $11.2 million or 40 cents per diluted share compared to $33.0 million or $1.18 per share a year ago period.

The Greenbrier Companies, Inc. ((GBX)) fell 1.4% or 24 cents to $15.82 after the car equipments maker said net sales in the third quarter ending in May surged 60% to $507.8 million compared to $317.3 million in the same period last year. Net income in the quarter swung to $19.1 million or 61 cents per diluted share compared to net loss of $3.3 million or 14 cents per share a year ago earlier.

Worthington Industries, Inc. ((WOR)) advanced 5.9% or $1.05 to $18.68 after the metals processing company reported net revenues in the fourth quarter ending in May increased 12% to $755.4 million compared to $675.7 million in the same period last year. Net income in the quarter edged up to $52.1 million or 75 cents per diluted share compared to $51.9 million or 70 cents per share a year ago earlier.