Movado, Men's Wearhouse and Kroger Plunge

Mayank Mehta
09 Dec, 2009
New York City

Dr Pepper Snapple will receive one time payment of $900 million to license certain brands to PepsiCo. Movado Group plunged after it reported sharply lower quarterly earnings. Kroger and Men

[R]2:00 PM New York – Dr Pepper Snapple will receive one time payment of $900 million to license certain brands to PepsiCo. Movado Group plunged after it reported sharply lower quarterly earnings. Kroger and Men’s Wearhouse plunge more than 10% weak results.[/R]

Of the stocks in S&P 500 index, 221 increased, 273 declined and 6 were unchanged.

Frontier Communications Corporation led the decliners in the S&P 500 index with a loss of 5.6% followed by losses in PepsiCo, Inc of 3.7% and in Autodesk, Inc of 2.9%, in Lockheed Martin Corporation of 2.7% and in The Gap, Inc of 2.7%.

Sprint Nextel Corporation led gainers in the S&P 500 index with a rise of 6.1% followed by gains in Jabil Circuit, Inc 3.7%, in Massey Energy Company of 3.6% and in United States Steel Corporation of 3.4%.

Other Movers

AK Steel Holding Corporation ((AKS)) the steelmaker added 2.9% or 56 cents to $19.85.

The Cooper Companies, Inc ((COO)) rose 0.4% or 15 cents to $34.07 after the contact lens maker said fourth quarter sales rose 6% to $283.5 million from $266.8 million a year ago. Net income in the quarter rose 2% to $30.1 million or 66 cents per diluted share compared to net income of $29.5 million or 65 cents per share a year ago.

Dr Pepper Snapple Group Inc ((DPS)) increased 2% to $27.26 after it agreed to license certain brands to PepsiCo for $900 million one-time cash. The deal between the company and Pepsi involves the purchase of PepsiAmericas and Pepsi Bottling Group.

EnCana Corp ((ECA)) increased 2.8% to $28.10 after it received an approval from the Toronto Stock Exchange to repurchase up to 5% or 37.5 million shares.

Jackson Hewitt Tax Service Inc ((JTX)) increased 1.2% or 5 cents to $4.18 after the income tax returns preparer reported second quarter revenues fell 21.6% to $4.0 million from $5.1 million a year ago. Net loss in the quarter was $19.5 million or 68 cents per diluted share compared to net loss of $22.2 million or 78 cents per share a year ago.

The Kroger Co ((KR)) plunged 11.9% or $2.72 to $20.13 after the traditional grocery chain said third quarter sales rose 0.6% to $17.7 billion from $17.6 billion a year ago. Net loss in the quarter was $874.9 million or $1.35 per diluted share compared to net income of $237.7 million or 36 cents per share a year ago.

The Men’s Wearhouse, Inc ((MW)) plunged 16.2% or $3.54 to $18.30 after the specialty retailer of men’s suits reported third quarter sales rose 0.5% to $462.0 million from $459.7 million a year ago. Net income in the quarter rose 35% to $19.7 million or 37 cents per diluted share compared to net income of $14.6 million or 28 cents per share a year ago.

Movado Group Inc ((MOV)) dropped 17% or $1.79 to $9.06 after it reported adjusted quarterly earnings of 13 cents disappointing analysts who were looking for as much as 63 cents a share.

Oil-Dri Corporation of America ((ODC)) decreased 0.6% or 10 cents to $15.39 after the maker of cat litter and other absorbent products said first quarter sales fell 15.4% to $53.4 million from $63.1 million a year ago. Net income in the quarter fell 2.7% to $2.19 million or 30 cents per diluted share compared to net income of $2.25 million or 31 cents per share a year ago.

Powell Industries, Inc ((POWL)) decreased 4.2% or $1.57 to $35.51 after the maker of equipment for distributing and managing electricity reported fourth quarter revenues fell 1% to $165.3 million from $167.1 million a year ago. Net income in the quarter rose 19.3% to $9.9 million or 85 cents per diluted share compared to net income of $8.3 million or 72 cents per share a year ago.

RealNetworks, Inc ((RNWK)) surged 15.9% or 55 cents to $4.00 after the seller of Internet music and video games was upgraded to “neutral” from “underweight” at JPMorgan.

Sprint Nextel Corporation ((S)) rose 6.1% or 24 cents to $4.15 after the mobile carrier was upgraded to “buy” from “hold” at Citigroup Inc.

SAIC, Inc ((SAI)) declined 2.1% or 38 cents to $17.66 after the engineering company said third quarter revenues rose 5.3% to $2.77 billion from $2.63 billion a year ago. Net income in the quarter rose 12.5% to $135 million or 34 cents per diluted share compared to net income of $120 million or 29 cents per share a year ago.