Oracle, RiM Rise; Cintas, Fluor, CarMax Drop

Mayank Mehta
19 Dec, 2008
New York City

Research in Motion surged after it reported 66% increase in sales and 7% rise in earnings in the latest quarter. Cintas dropped 12% and led decliners in S&P 500 index after it settled with a government agency for safety violations. Fluor Corp declined on an analyst downgrade.

[R]3:00PM New York – Oracle, CarMax, Research in Motion and Cintas are in trading focus.[/R]

Of the S&P 500 index stocks, 323 increased, 172 declined and 5 closed unchanged.

Darden Restaurant led gainers in the index with a rise of 14.4% followed by increases in Prologis of 14.2%, in Apartment Investments of 11.8%, in Southwestern Energy of 11.5% and Micron Technology of 10%.

Cintas Corp led decliners in the S&P 500 index with a loss of 12.3% followed by declines in Tenet Healthcare of 7.9%, in Weyerhaeuser Company of 7.7%, in Nordstrom Inc of 7.3% and in Fluor Corp of 7%.

Other Movers

3Com Corporation ((COMS)) added 5.7% or 13 cents to $2.38 after the computer networking gear maker said second quarter sales rose 11.6% to $354.6 million from $317.8 million a year ago. Net income in the quarter was $12.9 million or 3 cents per diluted share compared to net loss of $35.6 million or 9 cents per share a year ago.

ArthroCare Corporation ((ARTC)) lost 62.4% or $10.08 to $6.15 after the maker of surgical tools reported expansion of periods covered by restatement of financial statements and withdrawal of previously disclosed anticipated adjustments; management changes; and SEC subpoenas for documents.

CarMax, Inc ((KMX)) lost 8.5% or 70 cents to $7.50 after the nation’s largest retailer of used cars reported third quarter sales fell 23% to $1.46 billion from $1.89 billion a year ago. Net loss in the quarter was $21.9 million or 10 cents per diluted share compared to net income of $29.8 million or 14 cents per share a year ago.

Children’s Place Retail Stores ((PLCE)) dropped 8.7% or $1.96 to $20.70 on no news. The stocks in retail sector traded mixed in the day.

Cintas Corporation ((CTAS)) decreased 12.3% or $3.13 to $22.41 after the uniforms and other services provider agreed to pay nearly $3 million to settle OSHA case.

Citigroup Inc ((C)) lost 5.7% or 33 cent to $7.10 after Moody''s lowered the senior debt rating on Citigroup to """"A2"""" from """"Aa3."""" Long-term bank deposit ratings on its main bank subsidiary Citibank were reduced to """"Aa3"""" from """"Aa1.""""

Darden Restaurants, Inc ((DRI)) surged after the Olive Garden and Red Lobster chains reported second quarter sales rose 9.8% to $1.67 billion from $1.52 billion a year ago. Net income in the quarter rose 37% to $59.7 million or 43 cents per diluted share compared to net income of $43.5 million or 30 cents per share a year ago.

Electroglas Inc ((EGLS)) fell 10.0% or 2 cents to 18 cents after the supplier of wafer probing and software solutions for the semiconductor industry said second quarter revenues fell 44% to $6.4 million from $11.4 million a year ago. Net loss in the quarter was $4.7 million or 18 cents per diluted share compared to net loss of $3.3 million or 13 cents per share a year ago.

Fluor Corporation ((FLR)) fell 4.9% or $2.37 to $45.68 after analysts downgraded the engineering and construction company and downplayed benefits from public works spending planned by President-elect Obama. Analyst Brian Chin of Citi Investment Research downgraded Fluor to """"Sell"""" from """"Hold.""""

Genworth Financial, Inc ((GNW)) dropped 12.5% or 42 cents to $2.92 after J P Morgan Securities cut its rating on insurers Genworth Financial Inc and Prudential Financial Inc to """"neutral"""" from """"overweight"""" and said it was maintaining a cautious stance on the U.S. life insurance sector.

General Motors Corporation ((GM)) rose 15.8% or 58 cents to $4.24 after the worldwide development, production and marketing of cars, trucks and parts most of the $17.4 billion in emergency loans being doled out by the Bush administration to the U.S. auto sector will go to General Motors Corp.

Jabil Circuit, Inc ((JBL)) fell 3.0% or 12 cents to $6.46 after the provider of worldwide electronic manufacturing services and solutions reported first quarter sales were flat $3.4 billion from $3.4 billion a year ago. Net income in the quarter fell 26% to $46.2 million or 22 cents per diluted share compared to net income of $62.0 million or 30 cents per share a year ago.

Oracle Corporation ((ORCL)) surged 3.0% or 49 cents to $17.10 after the enterprise software company said second quarter sales rose 6% to $5.61 billion from $5.31 billion a year ago. Net income in the quarter fell 0.8% to $1.29 billion or 25 cents per diluted share compared to net income of $1.3 billion or 25 cents per share a year ago.

Palm, Inc ((PALM)) slid 4.0% or 9 cents to $2.11 after the mobile phone and device maker said second quarter revenues fell 45% to $191.6 million from $349.6 million a year ago. Net loss in the quarter was $506.2 million or $4.64 per diluted share compared to net loss of $8.8 million or 9 cents per share a year ago.

Quiksilver, Inc ((ZQK)) climbed 9.4% or 16 cents to $1.85 after the outdoor apparel and equipment maker said fourth quarter revenues rose 3% to $606.9 million from $587.3 million a year ago. Net loss in the quarter was $955,000 or 1 cent per diluted share compared to net loss of $110.9 million or 89 cents per share a year ago.

Research in Motion Limited ((RIMM)) gained 12% or $4.51 to $42.51 after the world leader in the mobile communications market said third quarter revenues rose 66.3% to $2.78 billion from $1.67 billion a year ago. Net income in the quarter rose 7% to $396.3 million or 69 cents per diluted share compared to net income of $370.5 million or 65 cents per share a year ago.

SMART Modular Technologies Inc. ((WWH)) gained 8.2% or 12 cents to $1.57 after the manufacturer of subsystems to original equipment manufacturers said first quarter revenues fell 20% to $141.3 million from $177.4 million a year ago. Net loss in the quarter was $6.6 million or 11 cents per diluted share compared to net income of $12.1 million or 19 cents per share a year ago.

Stewart Enterprises, Inc ((STEI)) declined 4.4% or 13 cents to $2.80 after the second largest operator funeral parlor reported fourth quarter revenues rose 3% to $130.4 million from $126.4 million a year ago. Net loss in the quarter was $35.6 million or 39 cents per diluted share compared to net income of $6.1 million or 6 cents per share a year ago.

Weyerhaeuser Company ((WY)) declined 6.3% or $2.34 to $34.79 after the forest products said that it expects lower-than-expected net income in the fourth quarter.