Costco, Yum! Rise; AirTran, Avis Budget Fall

Mayank Mehta
07 Oct, 2009
New York City

AirTran Holdings plunged after it filed to sell convertible notes and stocks. Avis Budget Group filed to raise at least $250 million. Home builders edged lower. Costco Wholesale Corp gained on positive outlook. Family Dollar advanced on earnings. Yum! Brands quarterly sales fall 2%, net drops 18.4%.

[R]12:40 PM New York – AirTran Holdings plunged after it filed to sell convertible notes and stocks. Avis Budget Group filed to raise at least $250 million. Home builders edged lower. Costco Wholesale Corp gained on positive outlook. Family Dollar advanced on earnings.[/R]

Of the stocks in S&P 500 index, 154 increased, 340 declined and 6 were unchanged.

KB Home led the decliners in the S&P 500 index with a loss of 2.9% followed by losses in AT&T Inc of 2.8%, in Cephalon, Inc of 2.5%, in Genuine Parts Company of 2.4% and in Marshall & Ilsley Corporation of 2.3%.

Wyndham Worldwide Corporation led gainers in the S&P 500 index with a rise of 6.0% followed by gains in American International Group, Inc 3.2%, in Costco Wholesale Corporation of 3.1% and in Abercrombie & Fitch Co of 3.0%.

Other Movers

Acuity Brands, Inc ((AYI)) surged 11.3% or $3.78 to $36.27 after the provider of lighting fixtures reported fourth quarter sales fell 19% to $422.6 million from $522.8 million a year ago. Net income in the quarter fell 30.5% to $29.1 million or 68 cents per diluted share compared to net income of $41.9 million or $1.02 per share a year ago.

American International Group, Inc ((AIG)) added 1.9% or 79 cents to $45.68.

Abercrombie & Fitch Co ((ANF)) the specialty retailer increased 3.3% or $1.06 to $32.64.

AirTran Holdings Inc ((AAI)) dropped 17.3% to $5.08 after the regional discount airline plans to sell 9 million shares and $75 million of convertible notes to fund working capital and general expenses. The company also will offer $11.25 million of notes and 1.25 million of shares to cover over allotment if any.

AT&T Inc ((T)) dropped 1.2% or 34 cents to $26.40 and yesterday said that it will permit data users to access Internet services such as Skype that permit free communication.

AngioDynamics, Inc ((ANGO)) added 2.0% or 29 cents to $14.14 after the medical device maker said first quarter sales rose 13% to $50.1 million from $44.3 million a year ago. Net income in the quarter fell 4.5% to $2.1 million or 9 cents per diluted share compared to net income of $2.2 million or 9 cents per share a year ago.

Avis Budget Group Inc. ((CAR)) plunged 6.5% to $12.41 after the company filed to sell $250 million of convertible notes. The terms of the deal will be negotiated with the purchasers and the rental car company plans to sell additional $37.5 million to cover overallotments.

Cephalon, Inc ((CEPH)) an international biopharmaceutical company fell 3.1% or $1.75 to $54.34.

Costco Wholesale Corporation ((COST)) added 3.3% or $1.91 to $59.84 after the warehouse club operator reported fourth quarter revenues fell 3% to $22.4 billion from $23.1 billion a year ago. Net income in the quarter fell 6% to $374 million or 85 cents per diluted share compared to net income of $398 million or 90 cents per share a year ago.

Family Dollar Stores, Inc ((FDO)) climbed 4.6% or $1.31 to $29.79 after the discount retailer reported fourth quarter sales rose 2.3% to $1.81 billion from $1.77 billion a year ago. Net income in the quarter rose 13% to $60.1 million or 43 cents per diluted share compared to net income of $53.2 million or 38 cents per share a year ago.

Genuine Parts Company ((GPC)) the distributor and retailer of automotive replacement parts decreased 1.2% or 42 cents to $37.14.

Helen of Troy Limited ((HELE)) increased 6.1% or $1.22 to $21.22 after the personal-care products maker reported second quarter sales rose 5.7% to $162.2 million from $153.5 million a year ago. Net income in the quarter rose 50% to $15.9 million or 51 cents per diluted share compared to net income of $10.6 million or 34 cents per share a year ago.

KB Home ((KBH)) the builder of single-family homes fell 1.9% or 30 cents to $15.13 on the worries that the U.S. Congress may not extend the $8,000 credit the first time home buyers. Lennar, Hovnanian, the Ryland Group and MDC Holdings fell more than 2.5%.

Monsanto Company ((MON)) fell 0.4% or 36 cents to $75.27 after the seed maker reported fourth quarter sales fell 8.3% to $1.88 billion from $2.05 billion a year ago. Net loss in the quarter was $233 million or 43 cents per diluted share compared to net loss of $172 million or 31 cents per share a year ago.

Smith & Nephew plc ((SNN)) fell 2.4% or $1.09 to $43.06 after UK based maker of shoulder and knee implants was downgraded to “neutral” from “buy” at UBS AG.

Viacom, Inc ((VIA)) rose 1.5% or 45 cents to $30.43 after the movie studio and cable channel operator was upgraded to “neutral” from “underperform” at Bank of America.

Wolverine World Wide, Inc ((WWW)) increased 2.1% or 55 cents to $25.75 after the shoe maker reported third quarter revenues fell 10% to $286.8 million from $318.9 million a year ago. Net income in the quarter fell 14% to $26.8 million or 54 cents per diluted share compared to net income of $31.2 million or 62 cents per share a year ago.

Wyndham Worldwide Corporation ((WYN)) the hospitality company increased 8.1% or $1.32 to $17.57.

YUM! Brands, Inc ((YUM)) advanced 1.2% or 44 cents to $35.30 after the chain-restaurant operator said third quarter sales fell 2% to $2.78 billion from $2.84 billion a year ago. Net income in the quarter rose 18.4% to $334 million or 69 cents per diluted share compared to net income of $282 million or 58 cents per share a year ago.