Joy Global, CSX Surges; Lehman, Wamu Plunges

123jump.com Staff
11 Sep, 2008
New York City

Joy Global Inc surged $3.49 or 9% to $48.37 after it increased its share repurchase program to $2 billion. CSX rose 9% after it lifted its earnings outlook for the year and beyond. Kenexa Corporation dropped 27% after it lowered its revenue and earnings guidance for the quarter and the year. FactSet, a financial data service provider fell 2% after it was dropped from a small cap index.

[R]2:00PM New York – Joy Global surges after it increased its stock buyback plan Lehman Brothers dropped to the lowest level in the fourteen years.[/R]

Joy Global Inc ((JOYG)) surged $3.49 or 9% to $48.37 after it increased its share repurchase program to $2 billion from $1 billion and will complete the repurchase before the end of the calendar year 2008. The revised repurchase period will be between 2008 and 2011.

CSX rose $4.73 to $59.73 after it lifted its earnings outlook for the year and beyond. CSX Corporation ((CSX)) The Jacksonville, Florida based railroad operator lifted its annual earnings guidance between $3.65 and $3.75 a share from $3.40 and $3.60 a share. CSX also lifted its capital spending in the year to $1.75 billion and free cash flow before the dividend to $1.00 billion.

Kenexa Corporation ((KNXA)) dropped 27% or $5.91 to $16.23 after it lowered its revenue and earnings guidance for the quarter and the year. Kenexa ((KNXA)) a global recruitment firm lowered its third quarter revenue to between $54 million and $56 million from its previous estimate of $57 million and $59 million. For the full year 2008, the company lowered its revenue guidance to between $213 million and $217 million from $225 million and $230 million. For the third quarter non-GAAP diluted share income was lowered to between 35 cents and 36 cents a share from 38 cents and 39 cents a share.

Landauer rose 6.8% or $4.30 to 467.48 after was selected for a small cap index. Landauer, Inc ((LDR)) a radiation detection services provider to universities, hospitals and nuclear power plants will replace the financial data and information provider FactSet Research ((FDS)) in S&P 600 Small Cap Index. FactSet Research dropped $1.15 to $59.03.

Lehman Brothers ((LEH)) dropped nearly 45% in the morning trading after analysts and rating agencies expressed their negative views on the company. Citigroup and Goldman Sachs lowered their ratings on the brokerage firm and expressed their concerns that the current initiatives to attract capital may not be adequate to halt the decline in stock price and bolster investors’ confidence. Oppenheimer & Company raised its full-year loss forecast to $10.24 from $6.67 a share after the company reported record quarterly loss yesterday. The news of analysts downgrade was first reported on Bloomberg News.

Lehman Brothers fell $2.67 or 37% to $4.58 and Merrill Lynch ((MER)) declined $3.22 or 13.39% to $20.18 after several leading brokerage houses lowered the company investment rating and cited possible debt rating downgrade from Moody’s.

lululemon athletica Inc ((LULU)) rose $1.38 or 5.2% to $19.39 after it reported second quarter revenue increase of 48% to $85.5 million and diluted earnings per share from continuing operations were $0.18 on net income of $12.3 million, compared to $0.08 earnings per share on net income of $5.5 million.

New York Times ((NYT)) added $1.15 or 7% to $15.12 after Mexican billionaire Carlos Slim and his family took a stake of 6.4% or 127 million shares according to the latest filing with the regulators. Slim will be the third largest shareholder in the newspaper and media company that has seen its share declined 80% from a high of $53 in late 2003.