Estee Lauder, Barclays Plunge, Terra Surges

123jump.com Staff
16 Jan, 2009
New York City

Banks continue to slide after Bank of America and Citigroup reported larger than expected quarterly losses. Barclays plunged 26% on the worries that the bank will need more capital. Elizabeth Arden dropped 39% and Estee Lauder declined 14% on weak earnings outlook.

[R]2:30PM New York – Banks and retailers continue their slide lower after Citigroup, Bank of America and Bank of Ozarks reported losses.[/R]

Of the stocks in S&P 500 index, 340 increased, 155 declined and 5 were unchanged.

Bank of America led decliners in the index with a loss of 13% followed by losses in Estee Lauder of 10.5%, in PNC Financial of 9.4%, in Wells Fargo of 8.2%, in JP Morgan Chase of 7.9%, in M&T Bank Corp of 7.5% and in Avon Products of 7.3%.

First Horizon led gainers in the index with a rise of 20% followed by increase in Genworth Financial of 18.5%, in Micron Tech of 13%, in Tesoro Corp of 9.1%, in Huntington Banc of 7.2% and in Best Buy Company of 7%.

Other Movers

Avon Products, Inc ((AVP)) fell 7.2% or $1.60 to $20.29 after the cosmetics seller was cut to “market perform” from “outperform” by analysts at BMO Capital Markets.

Bank of America Corporation ((BAC)) fell 18.4% or $1.88 to $8.32 after the bank company reported fourth quarter revenues increased 22.5% to $15.68 billion from $12.80 billion a year ago. Net loss in the quarter was $1.79 billion or 48 cents per diluted share compared to net income of $268 million or 5 cents per share a year ago.

Bank of the Ozarks, Inc ((OZRK)) added 4.8% or $1.10 to $24.00 after the bank company said fourth quarter net interest income rose 40.8% to $28.73 million from $20.41 million a year ago. Net income in the quarter climbed 17.4% to $9.09 million or 54 cents per diluted share compared to net income of $7.74 million or 46 cents per share a year ago.

Barclays PLC ((BCS)) plunged 26% or $2.19 to $6.21 after investors worried that the bank may not have enough capital and additional capital will come at a significant dilution to existing shareholders.

Citigroup Inc ((C)) lost 15.4% or 70 cents to $3.83 after the diversified global financial services company reported fourth quarter revenues fell 13% to $5.6 billion from $6.4 billion a year ago. Net loss in the quarter was $8.29 billion or $1.72 a diluted share compared to net loss of $9.8 billion or $1.99 per share a year ago.

Elizabeth Arden Inc ((RDEN)) plunged 39% or $4.57 to $6.99 after it lowered its earnings views. The company now estimates full year earnings of no more than $1.07 a share compared to previous estimate of as high as $1.50. The stock last traded at this price on February 8, 2002.

The Estee Lauder Companies Inc ((EL)) lost 14.6% or $4.24 to $24.79 after the beauty giant said it expects profit in the quarter ended December 31 to be 75 cents to 82 cents a share, with sales falling 6%, excluding the impact of currency translations.

The analysts were expecting the company to earn between 93 cents and 99 cents a share, surveyed by 123jump.com and were looking for the company to earn more than $2.10 a share for the fiscal year.

First Horizon National Corporation ((FHN)) jumped 16.6% or $1.24 to $8.70 after the Memphis, Tennessee based bank posted its third straight quarterly loss, hurt by increased credit losses. The net loss was $55.7 million or 27 cents per share in the fourth quarter and compared with a loss of $248.6 million or $1.88 per share, a year earlier.

Genworth Financial, Inc ((GNW)) added 13.5% or 28 cents to $2.34 after the U.S. life and mortgage insurer said on Friday the U.S. Office of Thrift Supervision was still processing its application to become a savings and loan holding company. Unlike most other financial services applicant, the company’s application has languished and not received quick approval.

Intel Corporation ((INTC)) gained 4.2% or 56 cents to $13.85 after the California based chip maker said fourth quarter revenues fell 23% to $8.2 billion from $10.7 billion a year ago. Net income in the quarter dropped 90% to $234 million or 4 cents per diluted share compared to net income of $2.27 billion or 38 cents per share a year ago.

Johnson Controls, Inc ((JCI)) plunged 8.4% or $1.45 to $15.62 after the automotive interiors products and services reported first quarter revenues fell 23.5% to $7.3 billion from $9.5 billion a year ago. Net loss in the quarter was $608 million or $1.02 per diluted share compared to net income of $235 million or 39 cents per share a year ago.

JPMorgan Chase & Co ((JPM)) slid 5.0% or $1.23 to $23.11 after the Bank of America was granted emergency funding and Citigroup reported larger than expected loss.

MasterCard Incorporated ((MA)) declined 4.4% or $5.74 to $124.56 on the worries that the current economic slowdown will lower the payment processing volume and lower the transaction fees.

Meade Instruments Corp ((MEAD)) surged 11.0% or $0.023 to $0.230 after the designer and manufacturer of optical products said third quarter sales fell 54.4% to $23.4 million from $51.4 million a year ago. Net loss in the quarter was $2.8 million or 12 cents per diluted share compared to net loss of $1.6 million or 7 cents per share a year ago.

Meridian Bioscience, Inc ((VIVO)) dropped 7.5% or $1.75 to $21.45 after the maker of medical diagnostic equipment lowered its revenue guidance range from the previous range of $157 million to $160 million to a revised range of $151 million to $156 million. Meridian is maintaining its diluted earning per share guidance between 86 cents and 90 cents.

Puget Energy, Inc ((PSD)) jumped 13.0% or $3.41 to $29.64 after investment group interested in long-term infrastructure led by Australia based Macquarie Bank announced to pay $7.4 billion and its wholly-owned utility subsidiary, Puget Sound Energy, by February 6.

Sealy Corporation ((ZZ)) dropped 18.9% or 44 cents to $1.88 after the bedding maker said fourth quarter sales fell 26% to $325.8 million from $441.3 million a year ago. Net loss in the quarter was $42 million or 46 cents per diluted share compared to net income of $17.1 million or 18 cents per share a year ago.

Terra Industries Inc ((TRA)) surged 24.0% or $3.92 to $20.21 after the maker of nitrogen-based crop nutrients CF Industries Holdings, Inc. today announced that it has proposed to acquire all of the outstanding common shares of the company in a transaction that would create a leader in the global fertilizer industry. The transaction values Terra Industries at $2.1 billion.