Convergys, Peabody Rise; Valero, AK Steel Fall

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

Valero dropped after the crude oil refiner posted a loss. American Express declined but recovered in the afternoon trading after its earnings dropped 79%. Netflix surged on a sharp increase in revenue and earnings. Waddell & Reed declined on one-time charges and a fall in asset under management.

[R]3:30PM New York - Valero dropped after the crude oil refiner posted a loss. American Express declined on earnings fall of 79%. Netflix surged on a sharp increase in revenue and earnings. Waddell & Reed declined on one-time charges and a fall in asset under management.[/R]

Of the stocks in S&P 500 index, 366 increased, 127 declined and 7 were unchanged.

AK Steel led decliners in the S&P 500 index with a loss of 8% followed by losses in Avery Dennison of 7.6%, in Southwest Air of 6.9%, in Valero Energy of 6.2%, in Abercrombie & Fitch of 6.1%, Flir Systems of 5.8%, and KB Home of 5%.

Convergys Corp led gainers in the index with a rise of 18.7% followed by increases in Zions Bancorp of 15.5%, in Aflac Inc of 12.8%, in Peabody Energy of 12%, in McKesson Corp of 11.9% and in St Jude Medical of 11%.

Other Movers

American Express Company ((AXP)) dropped 5% but traded as high as 9% to $16.65 after the charge card and a travel management company said fourth quarter revenues fell 11% to $6.51 billion from $7.32 billion a year ago. Net income in the quarter fell 79% to $172 million or 15 cents per diluted share compared to net income of $831 million or 71 cents per share a year ago.

Ashland Inc ((ASH)) gained 4.2% or 41 cents to $9.92 after the global chemical company reported results for the December 2008 quarter were sales and operating revenue of $1,966 million $238 million of which related to the acquired Hercules businesses an operating loss of $7 million and a net loss of $119 million or $1.73 per share.

AK Steel Holding Corporation ((AKS)) fell 5.4% or 39 cents to $9.02 after the steel maker says it swung to a fourth quarter loss on a fall in demand and steel prices. In the fourth quarter, the company lost $430.6 million or $3.88 per share compared to $106.7 million or 95 cents per share. Sales fell 14% to $1.46 billion.

Avery Dennison Corporation ((AVY)) slipped 12.6% or $3.51 to $24.45 after the adhesive label maker said Tuesday its fourth quarter profit fell 46% as the company implemented a restructuring program to offset higher raw material costs and the weakening economic climate.

In the quarter profit fell to $42.6 million or 43 cents per share from $79.4 million or 81 cents per share last year. Revenue fell 12% to $1.51 billion from $1.71 billion.

Boston Scientific Corporation ((BSX)) rose 5.5% or 44 cents to $8.40 after the medical device St Jude Medical reported a loss.

Check Point Software Technologies Ltd ((CHKP)) added 5.6% or $1.19 to $22.25 after the Internet security software developer reported quarterly profit less than expected.

Revenue increased 5.3% to $217.6 million from $206.7 million a year ago. Net income was $86.5 million or 41 cents per share down 1.6% from $87.9 million or 39 cents per share a year earlier.

Corning Incorporated ((GLW)) fell 4.0% or 40 cents to $9.55 after flat panel glass maker said will reduce its workforce by about 3,500 employees or 13% before the end of 2009 and implement additional cost-cutting measures. Revenues declined 31% to $1.08 billion from $1.58 billion.

Convergys Corporation ((CVG)) rose 17.4% or $1.23 to $8.30 after the business outsourcing services provider it swung to fourth-quarter loss on impairment and restructuring charges. The company lost $29.3 million or 24 cents per share compared with a profit of $45.3 million or 34 cents per share for the same quarter last year.

Revenue fell 1.4% to $703.7 million from $713.7 million in the year ago period.

Coventry Health Care, Inc ((CVH)) gained 6.9% or 98 cents to $15.15 after the national managed healthcare company today announced the resignation of Dale Wolf as president and CEO of the company effective Friday, January 30, 2009.

E. I. du Pont de Nemours and Company ((DD)) slipped 4.0% or 98 cents to $23.18 after the chemical maker reported a loss of $629 million or 70 cents per share compared with profit of $545 million or 60 cents per share, a year ago.

Macatawa Bank Corporation ((MCBC)) added 4.6% or 12 cents to $2.72 after the financial company said fourth quarter net interest income fell 8% to $13.5 million from $14.7 million a year ago. Net loss in the quarter was $35.1 million or $2.11 per diluted share compared to net loss of $2.6 million or 15 cents per share a year ago.

Netflix, Inc ((NFLX)) rose 7.3% or $2.20 to 32.35. The online movie rental subscription service said fourth quarter revenues rose 19% to $360 million from $302.4 million a year ago. Net income in the quarter rose 45% to $22.7 million or 34 cents per diluted share compared to net income of $15.7 million or 23 cents per share a year ago.

Peabody Energy Corporation ((BTU)) rose 12.4% or $2.96 to $26.80 after one of the world’s largest coal producers had net income of $293.3 million or $1.10 per share a year ago on revenue increase to $1.9 billion from 1.2 billion.

St. Jude Medical, Inc ((STJ)) jumped 10.2% or $3.25 to $34.93 after the medical device maker swung to a fourth quarter loss on acquisition and impairment charges. The company lost $194.5 million or 56 cents per share compared with profit of $118.4 million or 34 cents per share during the same period a year earlier. Revenue rose 11% to $1.13 billion from $1.02 billion.

The Hershey Company ((HSY)) increased 4.5% or $1.60 to $36.70 after the nation''s second largest candy maker said it earned in the fourth quarter $82.2 million or 36 cents per share up from $54.3 million or 24 cents per share a year ago.

Valero Energy Corporation ((VLO)) plunged 7.7% or $2.00 to $23.85 after the nation''s largest independent oil refiner says it lost $3.28 billion in the fourth quarter on tight profit margin and one-time charge. It lost $6.36 per share in the three months ended December 31 compared to net profit of $567 million or $1.04 per share in the quarter a year ago.

Waddell & Reed Financial, Inc ((WDR)) decreased 7.1% or $1.02 to $13.38 after the investment manager posted a fourth quarter loss and blamed the current financial market crisis and one time significant charges.

The company lost $730 million or a loss of 1 cent per share compared with a profit of $35.1 million or 42 cents per share a year ago. Sales declined 19% to $191 million from $236.1 million.