Red Hat, Vail Rise; Nomura, Hercules Fall

Mayank Mehta
24 Sep, 2009
New York City

Home builders led the decliners in New York trading after the weak home sales report. A123 Systems surged 45% after it priced offering above its offer price range. Red Hat led gainers in the S&P 500 index on rising sales and earnings. Nomura fell after it plans to raise $5.6 billion. Paychex Falls.

[R]12:40 PM New York – Home builders led the decliners in New York trading after the weak home sales report. A123 Systems surged 45% after it priced offering above its offer price range. Red Hat led gainers in the S&P 500 index on rising sales and earnings. Nomura fell after it plans to raise $5.6 billion. AK Steel, Paychex and MetroPCS lead decliners.[/R]

Of the stocks in S&P 500 index, 290 increased, 195 declined and 15 were unchanged.

Paychex, Inc led the decliners in the S&P 500 index with a loss of 5.9% followed by losses in Bed Bath & Beyond Inc of 3.5%, in Janus Capital Group Inc of 2.6%, in Smith International, Inc of 2.3% and in Electronic Arts Inc of 2.1%.

Red Hat Inc led gainers in the S&P 500 index with a rise of 14.8% followed by gains in Citrix Systems, Inc 5.1%, in Dynegy Inc of 4.4% and in Cintas Corporation of 4.4%.

Other Movers

3Com Corporation ((COMS)) added 6.0% or 26 cents to $5.04 after the networking solutions provider reported first quarter sales fell 15.2% to $290.5 million from $342.7 million a year ago. Net income in the quarter fell 90.6% to $7.5 million or 2 cents per diluted share compared to net income of $79.8 million or 20 cents per share a year ago.

American Greetings Corporation ((AM)) surged 24.1% or $3.71 to $18.69 after the manufacturer of seasonal greeting cards reported second quarter revenues fell 7.6% to $356.4 million from $385.8 million a year ago. Net income in the quarter rose 904% to $23.1 million or 59 cents per diluted share compared to net income of $2.3 million or 5 cents per share a year ago.

Ameron International Corporation ((AMN)) added 1.3% or $1.01 to $82.50 after the manufacturer of engineered products reported third quarter sales fell 23% to $131.4 million from $170.1 million a year ago. Net income in the quarter fell 60.7% to $5.9 million or 65 cents per diluted share compared to net income of $15 million or $1.63 per share a year ago.

Bed Bath & Beyond Inc ((BBBY)) decreased 2.3% or 90 cents to $38.12 after the housewares retailer said second quarter sales rose 3.2% to $1.91 billion from $1.85 billion a year ago. Net income in the quarter rose 13.6% to $135.5 million or 52 cents per diluted share compared to net income of $119.3 million or 46 cents per share a year ago.

Cintas Corporation ((CTAS)) added 2.6% or 75 cents to $29.10 after the corporate uniform supplier said first quarter revenues fell 11% to $891.6 million from $1 billion a year ago. Net income in the quarter fell 31.3% to $54 million or 35 cents per diluted share compared to net income of $78.6 million or 51 cents per share a year ago.

Comtech Telecommunications Corp ((CMTL)) advanced 0.6% or 23 cents to $34.31 after the telecommunication company said fourth quarter sales fell 3.6% to $122 million from $126.5 million a year ago. Net income in the quarter fell 63.5% to $6.2 million or 21 cents per diluted share compared to net income of $17 million or 61 cents per share a year ago.

Hercules Offshore, Inc ((HERO)) the operator of drilling rigs and equipment lost 13.9% or 88 cents to $5.41 after the company announced a plan to sell 17.5 million shares and forecasted third quarter guidance lower than expected by analysts. Morgan Stanley and UBS are leading the underwriter team.

Home builders decreased after August home sales decreased 2.7% from a rise of 7.2% in July. D R Horton decreased 3%, Lennar fell 3.5%, NVR, Inc edged higher 0.7%, Hovnanian and Standard Pacific Corp fell more than 6%.

McCormick & Company, Incorporated ((MKC)) fell 1.1% or 41 cents to $34.34 after the food and seasonings maker reported third quarter sales rose 1.3% to $791.7 million from $781.6 million a year ago. Net income in the quarter rose 9.5% to $75.1 million or 57 cents per diluted share compared to net income of $68.6 million or 52 cents per share a year ago.

National Semiconductor Corporation ((NSM)) declined 0.6% or 9 cents to $14.76 after the producer of power control chips was upgraded to “buy” from “hold” at Citigroup Inc.

Paychex, Inc ((PAYX)) fell 2.7% or 84 cents to $30.20 after the payroll and personnel services provider said first quarter revenues fell 6.3% to $500.2 million from $534.1 million a year ago. Net income in the quarter fell 17% to $123.6 million or 34 cents per diluted share compared to net income of $148.7 million or 41 cents per share a year ago.

Prospect Capital Corporation ((PSEC)) the private equity firm and lender plunged 9.3% or $1.03 to $9.96. The company plans to offer 2.81 million shares at $9 each.

Red Hat Inc ((RHT)) rose 12% or $2.95 to $27.82 after the software distributor said second quarter revenues rose 11.7% to $183.6 million from $164.4 million a year ago. Net income in the quarter rose 37% to $28.9 million or 15 cents per diluted share compared to net income of $21.1 million or 10 cents per share a year ago.

Rite Aid Corporation ((RAD)) plunged 11.2% or 22 cents to $1.73 after the drugstore operator reported second quarter revenues fell 3% to $6.3 billion from $6.5 billion a year ago. Net loss in the quarter was $120.4 million or 14 cents per diluted share compared to net loss of $227.4 million or 27 cents per share a year ago.

Steelcase Inc ((SCS)) fell 3.6% or 25 cents to $6.61 an office furniture company reported second quarter revenues fell 36% to $578.1 million from $901.8 million a year ago. Net income in the quarter was break even compared to net income of $31.4 million or 23 cents per share a year ago.

Vail Resorts, Inc ((MTN)) rose 4.6% or $1.67 to $37.25 after the resort reported fourth quarter revenues fell 62.3% to $101.9 million from $270.5 million a year ago. Net loss in the quarter was $38.7 million or $1.07 per diluted share compared to net loss of $11.1 million or 29 cents per share a year ago.