U.S. Movers: Caterpillar, Oakley, NVR

123jump.com Staff
20 Apr, 2007
New York City

Averages in New York trading maintained gains in the late afternoon trading on positive earnings from American Express, Honeywell and Caterpillar. Caterpillar, American Express gained 4.5% and Honeywell advacned 5%. Google jumped after beating expectations with an increase of 3.4%. Oakley rose 13% and NVR jumped 10% on earnings.

[R]2:30PM NY, U.S. Market Movers[/R]

Deerfield Triac Capital Corp. ((DFR)) said it has agreed to acquire Deerfield & Co. from Triarc Cos. and others for about $290 million in cash and stock. The consideration includes $145 million in Deerfield Triarc stock, or 9.6 million shares, plus $145 million in cash. In a separate statement, Triarc valued the deal at $300 million, including the distribution of about $4.6 million in Deerfield Triarc stock and $4 million in cash distributions. Shares climbed 13.2%.

Genesco Inc. ((GCO)) is considering a $1.2 billion cash takeover offer from Foot Locker Inc. The proposal came in a letter that Matthew Serra, Foot Locker''s chairman and chief executive, sent on April 4 to Hal Pennington, chairman, president and CEO of Genesco. Shares climbed 14.1%.

Hub Group Inc. ((HUBG)), transportation logistics provider, shares rose 16.9% after the company said that its first-quarter earnings raced past Wall Street''s expectations. Hub Group said that its first-quarter profit increased 25% to $11.4 million, or 29 cents per share, compared with $9.1 million, or 22 cents per share, a year ago. Transportation-management company’s revenue increased 10% to $393.3 million.

Intuitive Surgical Inc. ((ISRG)) shares climbed 8.6% after the company said that its first-quarter profit rose 65% to $23.8 million, or 62 cents per share, helped by recurring revenue growth and sales of its da Vinci Surgical System. Revenue climbed 48% to $114.2 million.

NVR Inc. ((NVR)) shares climbed 10% after the company reported first-quarter earnings of $84.8 million, or $12.96 per share, down from a year-ago profit of $132.6 million, or $19.48 per share. Revenue fell 9% to $1.09 billion from $1.2 billion in the same period a year earlier. The company said new orders for homes increased 8% in the quarter to 3,917 units, while mortgage closed loan production totaled $715 million, 3% lower than last year.

Oakley Inc. ((OO)) shares rose 13.1% after the company said that its first-quarter profit more than tripled as sunglasses and apparel sales grew. Oakley earnings totaled $5.7 million, or 8 cents per share, compared with $1.9 million, or 3 cents per share. Results for the 2007 quarter included 1 cent per share from an income tax refund, the company said. Oakley''s quarterly sales grew 31.3% to $199.2 million versus $151.7 in the year-ago period.

Packeteer Inc. ((PKTR)) shares climbed 9% after the company swung to first-quarter loss of 17 cents per share from a year-earlier profit of 13 cents per share. Excluding stock-based compensation and other items, the company loss was 9 cents compared with earnings 20 cents. Revenue climbed 7.4% to $34.7 million.

Sonoco Products Co. ((SON)) shares jumped 8.9% after the company said that its first-quarter net income increased to $53.1 million, or 52 cents per share, compared with $45.1 million, or 44 cents per share, a year earlier. Excluding items, earnings were 57 cents a share for the quarter. Sales rose 17% to $955.7 million versus $818.8 million a year ago. Sonoco expects second-quarter base earnings of 55 to 58 cents per share for the quarter.

Capital Bancorp ((CBC)) shares dropped 17.6% after the company said its first-quarter net income declined to $6.27 million, or 36 cents per share, compared with $9.95 million, or 61 cents per share, a year ago. Net interest income rose to $44.68 million, from $41.35 million a year ago.

Capital One Financial Corp. ((COF)) shares fell 6% after the company said that its first-quarter profit fell 24% to $675.1 million, or $1.62 a share, hampered by a 23% decline in its national-lending segment and higher expenses.

RightNow Technologies Inc. ((RNOW)), which sells customer management software and services, reported a first-quarter net loss of $6 million, or 18 cents per share, compared with a net loss of $440,000, or a penny per share, in the year-ago period. Excluding certain items, the company posted a loss of $4.7 million, or 14 cents per share. Revenue climbed to $19.8 million versus $19.3 million in the same period a year earlier. The company expects a second-quarter per-share loss of 18 cents to 20 cents, or 11 cents to 13 cents excluding items, on revenue of $26.3 million to $26.8 million. Shares fell 17%.

Stamps.com ((STMP)) shares fell 15.4% after the company said it would make investment in PC Postage marketing that would be consistent with, or higher than, its prior expectations in 2007. As a result, it now sees non-GAAP earnings of 77 to 87 cents per share for the year. The company also launched the latest version of its PC Postage software.

Zhone Technologies Inc. ((ZHNE)) shares dropped 8.8% after the company said that its first-quarter net loss flat with the year-earlier period at 3 cents per share. Revenue declined to $43.1 million versus $52.7 million in the same period a year earlier.

[R]1:00AM NY, 5:00 PM Frankfurt European stocks closed sharply higher on merger speculation in the bank sector.[/R]

European stock markets rebounded to close sharply higher Friday. The positive sentiment was generated by merger speculation in the banking sector, a bidding war for pharmacy chain Alliance Boots, and stronger-than-expected profit for technology group SAP. Shares in Societe Generale surged 7.7% on speculations that the bank is in merger talks with Italy''s UniCredit. Shares of UniCredit rose 3.9%. Commerzbank shares rose 3.6%, Deutsche Bank rose 4.2% and BNP Paribas shares advanced 3.9%. Shares in pharmacy chain

Alliance Boots climbed 7.2% after a bidding battle for the company loomed. Among earnings-related movers, SAP rose 2.1% after the world''s largest maker of business software reported 10% growth in Q1. Again in the tech sector, shares in Siemens rose 4.2% after the company said that chairman Heinrich von Pierer will step down April 25 in the wake of a multinational probe into possible bribery. The German DAX 30 climbed 1.4% to 7,342.54, and the French CAC-40 increased 1.9% to 5,938.90, and the U.K. FTSE 100 added 0.7% to 6,486.80.


[R]11:30AM U.S. market averages traded record high.[/R

U.S. markets continued to post gains, benefiting from stronger-than-expected earnings from Dow members like Caterpillar ((CAT)), Honeywell ((HON)), American Express ((AXP)) which boosted the index toward its first assault on the 13,000 mark. The Nasdaq and S&P''s 500 were both at six-year highs. In deal news, the largest U.S. shoes retailer Foot Locker ((FL)) rose 3.7% after it made an unsolicited $1.2 billion bid for Genesco to gain footwear chains including Journeys and Johnston & Murphy. Foot Locker offered $46 a share said it is likely to raise the bid.

Strong gains by some housing, telecommunications, and health insurance stocks also helped push the major averages in positive territory. Internet, financials and transportation stocks also contributed to the gains. Gold stocks showed considerable strength, benefiting from a notable increase by the price of gold. At the same time, the airline sector posted weakness, due to a $1 increase by the price of oil. Semiconductor stocks also moved to the downside. In midday trading, the Dow Jones industrial average was up 111.42, or 0.87%, at 12,920.05 after setting a new intraday high of 12,950.44. The Standard & Poor''s 500 index was up 11.39, or 0.77%, at 1,482.12, and the Nasdaq composite index rose 18.31, or 0.73%, to 2,523.66.


[R]9:45AM U.S. markets rallied on strong earnings from blue-chip stocks.[/R] U.S.

U.S. stock averages posted solid gains at opening Friday, with the Dow Jones hitting another record high, boosted by a sharp rebound in Asian markets, upbeat earnings at Caterpillar and Google, as well as an H&R Block deal to sell its mortgage lending unit. The Dow was sent 130 points higher by 26 of its 30 stocks. Among the most notable gainers, Caterpillar ((CAT)) rose 5% after the company said its Q1 net income fell below the year-earlier level, but exceeded estimates. Honeywell International ((HON)) also supported the index, rising 3.3% on stronger-than-expected earnings results.

However, Dow members Pfizer and McDonald''s posted losses. Pfizer Inc. ((PFE)) dropped 1.4% after reporting 18% drop in its Q1 profit, reflecting restructuring costs. In other corporate news, H&R Block Inc. ((HRB)) jumped 6% after the company agreed to sell its Option One Mortgage business to OOMC Acquisition Corp, a newly formed company affiliated with Cerberus Capital Management. H&R Block said it expects to report a 2007 loss.

Clear Channel Communications ((CCU)) edged up after it agreed to sell its television station group to Providence Equity Partners for $1.2 billion. In the opening minutes, the Dow is up 134.90 to 12,943.53, the Nasdaq Composite has gained 25.28 to 2,530.63, and the Standard & Poor''''s 500 index is up 12.77 at 1,483.50.


[R]9:30AM The FTSE advance Friday on merger activity involving Alliance Boots.[/R]

The UK benchmark index was higher by mid-day Friday. The FTSE 100 was up 45.8 points to 6,486.0.

Advancers

Alliance Boots rallied 8% as takeover speculation hit new heights. After Boots this morning accepted a 10.4 billion pound offer from private equity group Kohlberg Kravis Roberts and billionaire Stefano Pessina, Boots executive deputy chairman and largest shareholder, a rival consortium led by Terra Firma immediately issued an indicative proposal worth 10.8 billion pounds.

Barclays gained 2.4% as takeover speculation in the banking sector continued. Societe Generale shares hit a record high in France on talk of bid interest from Italian UniCredit.

Vodafone rose 2% on talk that it was close to selling its 45% stake in US mobile company Verizon Wireless. Taylor Woodrow was another good performer on a report that Persimmon is about to muscle into TayWood merger plan with Wimpey.

Decliners

WPP Group lost 1.4% as the advertising group reported first-quarter revenues that were below forecasts. WPP announced that although the US had experienced a slowdown in the last few months, this had been largely counter-balanced by improvements in western Europe.

Dialight fell 18% after the traffic light sensor technology specialist warned sales are sluggish and profits will be 1.3 million pounds below forecasts.


[R]9:15AM Asian markets advance Friday with Japan and China in the lead.[/R]

Asian markets ended higher on Friday. The 225-issue Nikkei Average ended 0.5% higher, up 80.65 points, to 17,452.62. Toyota Motor advanced 1.2% after reports that the vehicle maker will probably post record group operating profit of $18.96 billion for the fiscal year ended March 31, 20% higher from a year earlier.

Among other exporters, Canon added 0.8%. on news that the company is likely to post record net profit for the year ended Dec. 31, up 14% from the company earlier forecast and also Advantest added 2%.

Shanghai Composite Index surged 3.9% to close at 3,584.20. The Chinese benchmark lost 4.5% yesterday, as investors squared off positions in anticipation that economic data due out after market hours would point to an unhealthy acceleration in the economy, potentially triggering additional measures to cool growth.

Hong Kong Hang Seng Index finished up 1.3% to 20,566.59. China Mobile, the mainland largest wireless operator, gained 2.3%.Australian S&P/ASX 200 closed up 0.7% at 6,207.5 and South Korean Kospi index finished up 1.3% to 1,533.08. The biggest company in the country, Samsung Electronics, rose 0.7%.


[R]9:00AM U.S. stock futures pointed higher on strong earnings reports.[/R]

U.S. stock market futures advanced on Friday, boosted by a rebound in global markets, as well as strong earnings reports from technology bellwethers Google, Advanced Micro Devices and industrial companies Honeywell and Caterpillar. Google ((GOOG)) gained 4% in the pre-open on 69% profit jump in Q1 to $1 billion, or $3.18 a share from $592 million, or $1.95 a share a year earlier.

Another tech giant, AMD ((AMD)) rose 2% although it swung to Q1 loss of $1.11 a share from a profit of 38 cents a share hurt by weaker prices for its PC server chips. The company added it is considering a major restructuring plan focused on reduction of costs. Dow members Caterpillar ((CAT)) and Honeywell ((HON)) rose 5.8% and 2.9%, respectively on better-than-expected Q1 profit and lifted full-year forecasts.

Caterpillar said its Q1 net income fell to $816 million from $840 million, but per-share profit rose to $1.23 from $1.20 a year ago, when there were about 34 million more shares outstanding. Analysts had expected earnings of $1.09 a share.

Among blue-chip stocks, McDonald''s ((MCD)) reported Q1 higher earnings and revenue. Earnings met forecasts, while revenue was slightly above estimates. Dow component Pfizer ((PFE)) lost 1% after it reported 18% profit drop in Q1 and cut its full-year outlook. S&P 500 futures rose 6.60 points to 1,486.90 and Nasdaq 100 futures ran up 12.00 points to 1,861.00. Dow industrials futures gained 69 points to 12,940.


[R]8:15AM Pfizer posted 18% profit drop, cut full-year earnings forecast.[/R]

Pfizer Inc. ((PFE)), the world''s largest drug maker, posted 18% decline in Q1 profit, hurt by one-time charges and disappointing sales of diabetes drug Exubera. Net income fell to $3.39 billion, or 48 cents per share, down from $4.11 billion, or 56 cents per share, a year ago. However, excluding one-time items, the company reported adjusted profit of $4.8 billion, or 68 cents per share, up from $4.35 billion, or 59 cents per share, beating estimates of 57 cents. Revenue rose 6% to $12.47 billion from $11.75 billion last year, boosted by 8% rise in the sales of the company''s best selling drug, cholesterol reducer Lipitor.

Pfizer also cut its adjusted earnings per share for 2007 by 10 cents to account for the loss of patent protection for its second best-selling drug, the blood pressure medication Norvasc. The company projected adjusted earnings per share of $2.08 to $2.15, down from a previous range of $2.18 to $2.25. Pfizer also estimates full-year revenue of $47 billion to $48 billion. Including all charges, Pfizer predicts 2007 earnings per share of $1.30 to $1.41. The stock dropped 1.4% in pre-market trading.


[R]8:00AM NY-7:00PM Mumbai Sensex surges Friday on strong results from Satyam.[/R]

The Sensex on BSE finished 277.71 points, or 2.04%, higher at 13,897.41.

The market-breadth was strong as there were three advancers for every two decliners. For 1,508 stocks which advanced, 1,072 declined and only 85 stocks which remained unchanged. Of the 30 stocks in the Sensex, there were only three decliners, while the all the other stocks advanced. The tutnover on BSE was Rs 4,301 crore, higher than Rs 4,170.51 crore on Thursday. On NSE, the turnover was Rs 8,857.73 crore, also higher than Rs 8,194.26 crore on Thursday.

Economic news

Wholesale inflation rose to 6.09% for the week ended April 7 from 5.74% for the week ended March 31. The rise is mainly on a sudden 23% surge in vegetable prices, increasing pressure on RBI to strengthen money supply next week. Finance Minister P Chidambaram said he expected inflation to decline to around 5.7% next week.

The government asked state-owned banks to slow down credit growth, which is advancing at a rate of 30%, as well as rebalance their portfolios. Finance minister P Chidambaram asked banks to check credit growth to high risk sectors and warned against mobilising bulk deposits at high costs. Banks have to keep interest rates low for home loans up to Rs 10 lakh, which make more than 80% of the home loan portfolio of these banks.

Trading highlights

Tata Steel was the most-active stock with a turnover of Rs 241.35 crore followed by Advanta and Reliance Industries.

Advancers

Satyam rallied 6.3% to Rs 476.2, supported by better-than-expected fourth-quarter results. Satyam Computer fourth-quarter net profit rose 38% to Rs 394 crore, compared with the same quarter a year earlier. Satyam forecast 27% to 29% growth in earning per ADS for fiscal 2008, between $1.16 and $1.18. The US GAAP revenue is expected to rise 28% to 30%, between $1.87 billion and $1.9 billion for fiscal 2008.

Tata Steel soared 5.8% to Rs 534, and HDFC surged 5.5% to Rs 1,651. Tata Steel had rebounded from the last two days of decline caused by equity dilution worries after unveiling funding plans for its $12 billion takeover of Corus Group. Other gainers included Reliance Communications which rallied 5% to Rs 456. Reliance Communications had made strong growth in new subscriptions for the month just gone by.

Bharti Airtel advanced 3.4% to Rs 846. The company has launched a new set of prepaid cards, waiving processing fees. Named Airtel Happy Recharge, the cards will come in three denominations of Rs 299, Rs 399 and Rs 499 having a validity of 30 days. Index heavy Reliance Industries gained 3.4% to Rs 1,543.75.

ONGC gained nearly 3% at Rs 921. Oil prices rose as OPEC member, Nigeria, is holding elections this weekend, ahead of the US May futures contract expiry later on Friday. Larsen & Toubro an SBI moved up 2% each to Rs 1,695 and Rs 1,075, respectively. SBI advanced after the it said it planned to borrow up to Rs 10000 crore during 2007/08. Gujarat Ambuja was up 1.8% at Rs 115.

Decliners

Wipro lost 1.4% to Rs 571. Wipro today posted 44% growth in net profit in the March 2007 quarter to Rs 861 crore as per US GAAP, compared with the same time a year ago. It also forecast strong growth on more outsourcing and higher billing rates.

Hindustan Lever and Hero Honda were the other two declining stocks in the Sensex. Hindustan Lever lost 0.8% to Rs 206 and Hero Honda dipped 0.7% to Rs 649.6.

[R]6:30AM European markets are higher Friday on M&A and bid speculation.[/R]
European markets were higher Friday. By mid-day, the U.K. FTSE 100 index rose 0.5% at 6,473.10, the German DAX Xetra 30 index advanced 0.6% at 7,286.73 and the French CAC-40 index increased 0.5% at 5,859.37. National benchmarks gained in all 16 western European markets that were open.

Advancers

Pharmacy chain Alliance Boots gained 5.4% after Kohlberg Kravis Roberts and Alliance Boots deputy chairman, Stefano Pessina, announced that they had agreed to pay 10.6 billion pounds, or $21.3 billion, to buy the company. In a statement accompanying the offer, Alliance Boots also said that Terra Firma and the Wellcome Trust also indicated that they were interested in the company.

Software consulting company SAP shares rose 1.9% after it said that its first-quarter net income rose 10% to 310 million euros from 282 million euros. Revenue for the quarter rose 6%, or 11% at constant currencies, to 2.2 billion euros.

BHP, the world largest mining company, added 1.2%. Anglo American, the world second-biggest mining company, climbed 1.2%.

Nokia, the world largest maker of mobile phones, advanced 2.1%. ABN Amro Holding NV raised its recommendation for the shares to buy from hold while WestLB lifted the stock to buy from reduce.

Decliners

Swedish telecommunications equipment maker Ericsson lost 0.6% after Sony Ericsson, its mobile phone joint venture with Sony, stated that its first quarter net income rose to 254 million euros, from 109 million euros a year ago, after sales grew to 2.93 billion euros, from 1.99 billion euros last year.

Volkswagen fell 1.2% as the shares trade without the right to their latest dividend.

Oil and precious metals

Crude oil for May delivery fell $1.80, or 2.8%, to $61.83 a barrel in the first four days of trading this week on the New York Mercantile Exchange.

Gold and silver climbed as the dollar plunged to its fourth consecutive weekly decline against the euro, making investors buy the precious metals as an alternative investment to U.S. stocks and bonds. Gold for immediate delivery in London rose $3.10, or 0.5%, to $686.05 an ounce. Silver for immediate delivery gained 12.5 cents, or 0.9%, to $13.805 an ounce. Platinum climbed $18.50, or 1.4%, to $1,315.50 an ounce, while palladium rose $4, or 1.1%, to $381 an ounce.

Currencies

The dollar was lower against most other major currencies in European trading Thursday morning. The euro traded at $1.3598, up from $1.3580 late Wednesday in New York. The British pound remained above the $2 mark, trading at $2.0021, down from $2.0057. The dollar fetched 117.84 Japanese yen, down from 118.61.