Esterline, Freddie Surge; Shanda, Moody's Fall

Mayank Mehta
04 Sep, 2009
New York City

Esterline Technologies surged after it lifted its earnings outlook. Shanda Interactive, the Chinese game developer plans to spin-off its U.S. division and list on Nasdaq. Freddie Mac gained after it met NYSE listing price requirements. Moodys declined after Berkshire lowered its holding.

[R]11:00 AM New York – Esterline Technologies surged after it lifted its earnings outlook. Shanda Interactive, the Chinese game developer plans to spin-off its U.S. division and list on Nasdaq. Freddie Mac gained after it met NYSE listing price requirements.[/R]

Of the stocks in S&P 500 index, 285 increased, 199 declined and 16 were unchanged.

Abercrombie & Fitch Co led the decliners in the S&P 500 index with a loss of 4.7% followed by losses in Frontier Communications Corporation of 3.3%, in Motorola, Inc of 2.4%, in The New York Times Company of 2.3% and in XL Capital Ltd of 2.2%.

Dynegy Inc led gainers in the S&P 500 index with a rise of 3.8% followed by gains in Citigroup Inc 2.9%, in E*Trade Financial Corporation of 2.7% and in Teradyne, Inc of 2.7%.

Other Movers

Abercrombie & Fitch Co ((ANF)) fell 6.2% or $1.95 to $29.03 after the specialty retailer was downgraded to “sell” from “hold” at Citigroup Inc.

Array BioPharma Inc ((ARRY)) surged 24.6% or 93 cents to $2.85.

Cascade Corporation ((CASC)) fell 2.2% or 55 cents to $23.78 after the software company said second quarter sales fell 49% to $76.6 million from $150.1 million a year ago. Net loss in the quarter was $12.3 million or $1.14 per diluted share compared to net income of $10.5 million or 94 cents per share a year ago.

Freddie Mac ((FRE)) rose 6.9% or 13 cents to $2.00 after the mortgage-finance company said that it was notified by the New York Stock Exchange that the government sponsored lender is now in compliance of its minimum share price listing requirement.

G-III Apparel Group, Ltd ((GIII)) decreased 1.4% or 23 cents to $15.70 an apparel company said second quarter sales rose 20% to $135.9 million from $113.5 million a year ago. Net loss in the quarter was $2.8 million or 17 cents per diluted share compared to net loss of $3.9 million or 23 cents per share a year ago.

Esterline Technologies Corp ((ESL)) surged 15.4% to $35.21 after it lifted its fiscal 2009 earnings guidance range between $3.10 and $3.30 a share from $3.00 and$3.20 a share. The earnings in the third quarter increased to $1.09 a share from 61 cents a share a year ago on nearly flat revenues and one-time tax benefit of 10 cents a share.

H&R Block, Inc ((HRB)) fell 2.4% or 41 cents to $17.01 after the tax preparer reported first quarter revenues rose 1.3% to $275.5 million from $271.9 million a year ago. Net loss for the quarter was $133.6 million or 40 cents per diluted share compared to net loss of $132.7 million or 41 cents per share a year ago.

Human Genome Sciences Inc ((HGSI)) increased 4.9% or 90 cents to $19.06 after the maker of a drug for lupus said that the journal Arthritis Care & Research described the company’s method of disease development may improve the drug development.

Krispy Kreme Doughnuts, Inc ((KKD)) fell 1.8% or 6 cents to $3.28 after the retailer and wholesaler of doughnuts and packaged sweet said second quarter revenues fell 12% to $82.7 million from $94.2 million a year ago. Net loss in the quarter was $157,000 or break even per diluted share compared to net loss of $1.9 million or 3 cents per share a year ago.

Moody’s Corporation ((MCO)) fell 0.3% or 9 cents to $24.17 after Berkshire Hathaway lowered its holding in the rating agency by 2%.

Novellus Systems, Inc ((NVLS)) the maker of equipment that helps turn silicon wafers into computer chips added 2.4% or 46 cents to $19.54.

Quiksilver, Inc ((ZQK)) sank 16.4% or 47 cents to $2.39 after the clothing and sporting goods maker said third quarter sales fell 11.2% to $501.4 million from $564.9 million a year ago. Net income in the quarter fell 55% to $1.3 million or 1 cent per diluted share compared to net income of $2.9 million or 2 cents per share a year ago.

Shanda Interactive Entertainment Limited ((SNDA)) increased 0.02% or 1 cent to $51.00 an interactive entertainment media company in China said second quarter revenues rose 47.7% to Rmb 1.24 billion from Rmb 837.6 million a year ago.

Net income in the quarter rose 52.6% to Rmb 426.9 million or Rmb 6.14 per ADS compared to net income of Rmb 279.8 million or Rmb 3.80 per ADS a year ago.

Shanda also plans to spin off its U.S. game publishing unit in a public offering. The price of the offering has not been determined but the offering could fetch as much as $650 million according to 123jump.com IPO team analysis.

The Cooper Companies, Inc ((COO)) dropped 3.8% or $1.02 to $25.65 after the contact lens maker said third quarter sales rose 2.4% to $285.2 million from $278.5 million a year ago. Net income in the quarter rose 22% to $21.9 million or 48 cents per diluted share compared to net income of $17.9 million or 39 cents per share a year ago.

Ulta Salon, Cosmetics & Fragrance, Inc ((ULTA)) added 4.0% or 51 cents to $13.00 after the beauty retailer said second quarter sales rose 9.8% to $273.5 million from $249.1 million a year ago. Net income in the quarter rose 56% to $5.8 million or 10 cents per diluted share compared to net income of $3.7 million or 6 cents per share a year ago.