GM Drops 10%, Ford Below $2; CB Richard Surges

Mayank Mehta
07 Nov, 2008
New York City

General Motors and Ford reported weaker than expected results and cried out for federal help but fail to trim executive compensation and labor costs. GM dropped 10% and Ford declined below $2. Dolby Laboratories dropped 4% after third quarter net rose 10%. CB Richard Ellis surges 16%.

[R]3:40PM New York – CB Richard Ellis increased after it reported less than expected decline in profit. World Fuel Services dropped after it reported 17% rise in earnings.[/R]

American International Group, Inc ((AIG)) rose 14.4% or 28 cents to $2.15 after the Wall Street Journal said federal officials were considering a possible change in the terms of an $85 billion loan to the company.

Bebe stores, Inc ((BEBE)) fell 5.2% or 39 cents to $7.00 after the women's apparel retailer said first quarter sales rose 1% to $163.3 million from $161.1 million a year ago. Net income in the quarter fell 27% to $11.2 million or 12 cents per diluted share compared to net income of $15.4 million or 16 cents per share, a year ago.

CB Richard Ellis Group, Inc ((CBG)) added 22.0% or $1.45 to $7.14 after its third quarter profit fell 65% on the lower revenue in its global real estate investment unit.

Dolby Laboratories, Inc ((DLB)) dropped 4.1% or $1.22 to $28.22 after the audio technology company said fourth quarter revenues rose 26% to $163.1 million from $129.0 million a year ago. Net income in the quarter rose 10% to $48.6 million or 42 cents per diluted share compared to net income of $44.2 million or 39 cents per share, a year ago.

Fluor Corporation ((FLR)) climbed 9.4% or $3.22 to $37.23 after it engineering and construction contractor said third quarter revenues rose 38% to $5.67 billion from $4.11 billion a year ago. Net income in the quarter rose 95% to $183.1 million or $1.01 per diluted share compared to net income of $93.7 million or 51 cents per share, a year ago.

Genworth Financial Inc dropped 43% or $2.15 to $2.55 after it reported weak earnings report. The company reported third quarter loss of $258 million or 60 cents a share compared to $339 million or 76 cents a share and suspended its quarterly dividend. The company also withdrew its financial outlook for the year.

General Motors ((GM)) dropped 10% or 52 cents to $4.29 after it reported third quarter revenue decline of 6% to $37.9 billion and adjusted net loss of $4.2 billion compared to $1.6 billion a year ago period. Adjusted operating cash flow in the period was a loss of $6.9 billion compared to $2.5 billion in the year ago period.

In addition, the company took a non-cash charge of $1.5 billion related to currency and commodities hedging.

General Motors North America lost 1% market share to 23.4% and net sales declined 16% to $22.5 billion. In the quarter the division reported a loss of $2.3 billion compared to $298 million a year ago.

General Motors Acceptance Corp or GMAC reported a loss of $2.5 billion down $900 million from the year ago in which GM owns 49% stake.

Ford Motor Company ((F)) lost 5.2% or 11 cents to $1.98 after the producer of cars and trucks reported third quarter revenues fell 22% to $32.1 billion from $41.1 billion a year ago. Net loss in the quarter was $129 million or 6 cents per diluted share compared to net loss of $380 million or 19 cents per share, a year ago.

Fuel Systems Solutions, Inc ((FSYS)) surged 36.3% or $9.70 to $36.41 after it raised annual revenue view by 10% to $385 million. For the quarter ended Sept. 30, net income was $11.9 million, or 75 cents a share, compared to a loss of $359,000, or 2 cents a share, for the prior-year period.

Las Vegas Sands ((LVS)) dropped for the second day on heavy volume of 19 million shares. The stock declined to 98 cents to $6.87 on the worries that company may not be able to raise capital to meet loan covenants and may be forced to file bankruptcy.

Local.com Corporation ((LOCM)) declined 5.9% or 14 cents to $2.23 after the provider of paid-search advertising services to local and national businesses on the Internet said third quarter revenues rose 82% to $10.2 million from $5.6 million a year ago. Net loss in the quarter was $1.7 million or 12 cents per diluted share compared to net loss of $9.3 million or 71 cents per share a year ago.

North American Energy Partners Inc ((NOA)) fell 6.7% or 27 cents to $3.71 after the resource services provider to oil, gas and other natural resource companies said second quarter revenues rose 25.35% to $280.3 million from $223.6 million a year ago. Net loss in the quarter was $1.2 million or 3 cents per diluted share compared to net income of $3.2 million or 9 cents per share, a year ago.

ResMed Inc ((RMD)) decreased 9.2% or $3.30 to $32.42 after the respiratory equipment maker said first quarter revenues rose 17% to $217.9 million from $185.7 million a year ago. Net income in the quarter rose 16% to $28 million or 36 cents per diluted share compared to net income of $24.1 million or 31 cents per share, a year ago.

TechTarget Inc ((TTGT)) lost 6.2% or 32 cents to $4.83 after the online media content company said third quarter revenues rose 8% to $25.2 million from $23.3 million a year ago. Net loss in the quarter was $314,000 or 1 cent per diluted share compared to net income of $1.8 million or 4 cents per share, a year ago.

The Knot, Inc ((KNOT)) added 5.2% or 28 cents to $5.67 after the media company targeting couples planning their weddings said third quarter revenues rose 8% to $27.0 million from $25.0 million a year ago. Net income in the quarter fell 24% to $2.2 million or 7 cents per diluted share compared to net income of $2.9 million or 9 cents per share, a year ago.

TETRA Technologies, Inc ((TTI)) decreased 15.8% or $1.04 to $5.52 after the oil and gas services company reported third quarter revenues rose 4.28% to $249 million from $238.8 million a year ago. Net income in the quarter was $11.66 or 15 cents per diluted share compared to net income of $3.86 or 5 cents per share a year ago.

The Walt Disney Company ((DIS)) plunged 5.8% or $1.42 to $22.81 after the family entertainment company said fourth quarter revenues rose 5.8% to $9.45 billion from $8.93 billion a year ago. Net income in the quarter fell 13% to $760 million or 40 cents per diluted share compared to net income of $877 million or 44 cents per share, a year ago.

World Fuel Services Corporation ((INT)) dropped 8.2% or $1.91 to $21.19 after the fuel procurement services company said third quarter revenues rose 50% to $5.4 billion from $3.6 billion a year ago. Net income in the quarter rose 171% to $40.1 million or $1.37 per diluted share compared to net income of $14.8 million or 51 cents per share, a year ago.