Hartford Financial, Prudential Surge

123jump.com Staff
05 Dec, 2008
New York City

Insurance stocks rallied after Hartford and Prudential revised earnings outlook. Hartford Financial surged after it lifted its earnings guidance and Prudential soared 30% on its better outlook for 2009. Royal Bank of Canada declined 5%.

[R]2:20 PM New York – Insurance stocks rallied after Hartford and Prudential revised earnings outlook.[/R]

Stocks in early trading fell on the sharp increase in unemployment in November but traded higher in the afternoon. Of the stocks in S&P 500 index, 304 stocks declined, 191 rose and 5 were unchaged.

American Software, Inc ((AMSWA)) added 9.4% or 31 cents to $3.60 after supply chain management software developer said second quarter revenues fell 16% to $19.8 million from $23.6 million a year ago. Net income in the quarter fell 82% to $470,000 or 2 cents per diluted share compared to net income of $2.5 million or 10 cents per share a year ago.

Actuate Corporation ((ACTU)) increased 30.4% or 69 cents to $2.96 after the software developer that it is amending its previously announced tender offer to repurchase a maximum of $60 million worth of its common stock for cash. Actuate is now offering to repurchase its shares at a price per share between $3.00 and $3.50.

Big Lots, Inc ((BIG)) decreased 4.5% or 64 cents to $15.64 after the closeout retailer reported third quarter sales fell 0.9% to $1.02 billion from $1.03 billion a year ago. Net income in the quarter fell 14.7% to $12.2 million or 15 cents per diluted share compared to net income of $14.3 million or 14 cents per share a year ago. Comparable same store sales fell 0.2%.

Bill Barrett Corporation ((BBG)) lost 13.4% or $2.34 to $15.04 after The Denver, Colorado based oil and gas producer was cut to “market perform” from “outperform” by Morgan Keegan & Co. Crude oil price has declined nearly 70% from its peak in mid-June and is likely to drop below $30 a barrel. Crude oil dropped 5% or $2.22 to $41.45 a barrel.

Bunge Limited ((BG)) slid 10.2% or $3.81 to $33.47 after the world’s largest oilseed processor and fertilizer seller was cut to “neutral to “underperform” at Merrill Lynch. Last week Bunge announced plans to close its Ohio soybean processing plant. The company recently terminated its merger agreement with Corn Products International ((CPO)).

Cubist Pharmaceuticals, Inc ((CBST)) declined 11.5% or $3.24 to $24.74 after the maker of the skin-infection drug Cubicin was downgraded by Oppenheimer analyst saying the company may hurt its value with distracting licensing moves. Analyst DeGeeter cut his rating on the stock to ""underperform"" from “Perform.”

Collective Brands, Inc ((PSS)) climbed 26.7% or $1.94 to $9.20 after the footwear retailer said third quarter revenues rose 4% to $862.7 million from $830.7 million a year ago. Net income in the quarter rose 86.3% to $47.5 million or 75 cents per diluted share compared to net income of $25.5 million or 39 cents per share a year ago.

El Paso Corporation ((EP)) declined 5.3% or 33 cents to $5.81 after the natural gas transmission and exploration and production sectors of the energy industry has announced a new oil and gas discovery off the coast of Brazil. The company has 35% interest in the well operated by Petrobras.

Family Dollar Stores, Inc ((FDO)) rose 1% or 23 cents to $24.44 after the discount merchandise chain operator with 6,500 stores said first quarter sales rose 4% to $1.75 billion on a comparable same stores sales rise of 2.1%.

The Hartford Financial Services Group, Inc ((HIG)) rose 93% or $6.59 to $13.82 after increased its annual core earnings guidance and said its operating businesses continue to perform well in light of the challenging environment, reflecting strong underwriting in P&C insurance. The company guided 2008 core earnings in the range between $4.70 and $4.80 a share. The company said it expects to “to recover the vast majority of its unrealized loss position as of October 31, 2008, even in a deep recession.”

Hartford had earlier estimated earnings between $4.30 and $4.50 per share.

Jos. A. Bank Clothiers, Inc ((JOSB)) gained 8.1% or $1.76 to $23.25 after the retailers said third quarter sales rose 13.7% to $149.3 million from $131.3 million a year ago. Net income in the quarter rose 31% to $9.3 million or 50 cents per diluted share compared to net income of $7.1 million or 38 cents per share a year ago. Comparable same store sales increased 7.0%.

Kewaunee Scientific Corporation ((KEQU)) surged 23.8% or $2.00 to $10.40 after the scientific and technical furniture products maker said second quarter sales rose 12% to $27.7 million from $24.7 million a year ago. Net income in the quarter rose 25% to $1.5 million or 57 cents per diluted share compared to net income of $1.2 million or 47 cents per share a year ago.

Logility, Inc ((LGTY)) lost 15.2% or 76 cents to $4.24 after the supplier of collaborative solutions provider reported second quarter sales fell 6% to $10.5 million from $11.1 million a year ago. Net income in the quarter fell 6% to $1.6 million or 12 cents per diluted share compared to net income of $1.7 million or 13 cents per share a year ago.

Prudential Financial, Inc ((PRU)) gained 30.2% or $6.38 to $27.55 after the largest life insurer estimated 2009 earnings per share between $5.25 and $5.65 a share on the assumption that S&P 500 index will trade at average of 850 in 2009. The company also guided earnings per share in 2008 between $3.35 and $3.55.

Royal Bank of Canada ((RY)) slid 4.8% or $1.49 to $29.28 after the financial services company reported fourth quarter revenues fell 10% to $5,069 million from $5,615 million a year ago. Net income in the quarter fell 15% to $1,120 million or 81 cents per diluted share compared to net income of $1,324 million or $1.01 per share a year ago.

Ulta Salon, Cosmetics & Fragrance, Inc ((ULTA)) lost 6.5% or 50 cents to $7.10 after the cosmetics retailer said third quarter sales rose 22.4% to $254.8 million from $208.2 million a year ago. Net income in the quarter rose 19.3% to $5.0 million or 9 cents per diluted share compared to net income of $4.2 million or 5 cents per share a year ago.

Yahoo! Inc ((YHOO)) rose 4% or 44 cents to $11.49 and Microsoft ((MSFT)) edged up 1 cent to $19.14 after Microsoft hired ex-Yahoo executive for its online business.