UPS, Chipotle Rise; Apollo, MetroPCS Fall

Mayank Mehta
08 Jan, 2010
New York City

UPS plans to cut 1,800 jobs and revised its fourth quarter outlook higher. Apollo Group declined after an investigation by Department of Education raised issues. MetroPCS declined as investors fear declining margins. Chipotle Mexican Grill surges 7%.

[R]11:00 AM New York – UPS plans to cut 1,800 jobs and revised its fourth quarter outlook higher. Apollo Group declined after an investigation by Department of Education raised issues. MetroPCS declined as investors fear declining margins. Chipotle Mexican Grill surges 7%.[/R]

Of the stocks in S&P 500 index, 77 increased, 414 declined and 9 were unchanged.

Apollo Group, Inc led the decliners in the S&P 500 index with a loss of 6.1% followed by losses in MetroPCS Communications, Inc of 5.8% and in Motorola, Inc of 3.2%, in Abercrombie & Fitch Co of 3.1% and in Eastman Kodak Company of 2.9%.

United Parcel Service, Inc led gainers in the S&P 500 index with a rise of 5.4% followed by gains in American International Group, Inc 3.9%, in AK Steel Holding Corporation of 2.8% and in Halliburton Company of 2.7%.

Other Movers

Apollo Group, Inc ((APOL)) decreased 5.0% or $3.20 to $60.74 after the private education provider said first quarter revenues rose 31% to $1.27 billion from $971 million a year ago. Net income in the quarter rose 33% to $240.1 million or $1.54 per diluted share compared to net income of $180.4 million or $1.12 per share a year ago. T

The online education said that the Department of Education investigation has cited six issues and “one concern.”

AZZ incorporated ((AZZ)) added 2.0% or 69 cents to $34.83 an electrical equipment and components maker reported third quarter sales fell 25% to $81.5 million from $108.9 million a year ago. Net income in the quarter fell 19.4% to $8.7 million or 70 cents per diluted share compared to net income of $10.8 million or 88 cents per share a year ago.

Chipotle Mexican Grill, Inc ((CMG)) surged 7% to $92.58 on twice the normal trading volume ahead of presentation to investors on Tuesday.

DemandTec, Inc ((DMAN)) dropped 2.4% or 21 cents to $8.22 after the provider of consumer demand management solutions said third quarter revenues rose 6% to $20.1 million from $19.0 million a year ago. Net loss in the quarter was $2.4 million or 8 cents per diluted share compared to net loss of $808,000 or 3 cents per share a year ago.

DragonWave, Inc increased 8.5% to $13.19 after the Canadian wireless equipment raised its full year revenues outlook to C$170 million and third quarter earnings were ahead of market expectations.

The Greenbrier Companies, Inc ((GBX)) dropped 1.7% or 18 cents to $10.22 after the manufacturer of railroad freight car equipment reported first quarter sales fell 33% to $171.7 million from $256.1 million a year ago. Net loss in the quarter was $3.2 million or 19 cents per diluted share compared to net loss of $3.9 million or 23 cents per share a year ago.

Global Payments Inc ((GPN)) fell 1.8% or 94 cents to $51.10 after the processor of electronic payments said second quarter sales rose 12% to $409 million from $365.9 million a year ago. Net income in the quarter rose 28.4% to $62.8 million or 76 cents per diluted share compared to net income of $48.9 million or 60 cents per share a year ago.

Halliburton Company ((HAL)) rose 2.7% or 90 cents to $33.38 after the oilfield-services provider was added to Goldman Sachs Group Inc.’s “conviction buy” list.

IHS Inc ((IHS)) dropped 1.5% or 86 cents to $54.75 after the provider and source of Critical Information said fourth quarter revenues rose 11.5% to $257.1 million from $230.6 million a year ago. Net income in the quarter rose 23.7% to $41.2 million or 64 cents per diluted share compared to net income of $33.3 million or 53 cents per share a year ago.

Lawson Software, Inc ((LWSN)) fell 5.1% or 36 cents to $6.63 after the provider of enterprise software said second quarter sales fell 11% to $184.4 million from $206.4 million a year ago. Net income in the quarter fell 9% to $2.75 million or 2 cents per diluted share compared to net income of $3.03 million or 2 cents per share a year ago.

Mylan Inc ((MYL)) fell 3.4% or 63 cents to $17.40 after the maker of generic drugs was downgraded to “neutral” from “buy” at Human Genome Sciences Inc.

Penford Corporation ((PENX)) increased 8.9% or 85 cents to $10.36 after the manufacturer of specialty natural-based ingredient systems reported first quarter sales rose 12.6% to $67.1 million from $59.6 million a year ago. Net income in the quarter was $4.5 million or 40 cents per diluted share compared to net loss of $369,000 or 3 cents per share a year ago.

PriceSmart, Inc ((PSMT)) fell 0.1% or 2 cents to $20.11 after the warehouse-shopping club reported first quarter revenues rose 3.3% to $315.4 million from $305.2 million a year ago. Net income in the quarter fell 3% to $10.4 million or 35 cents per diluted share compared to net income of $10.7 million or 36 cents per share a year ago.

Schnitzer Steel Industries, Inc ((SCHN)) rose 2.3% or $1.21 to $53.90 after the recycler of ferrous and nonferrous metals said first quarter sales fell 16.5% to $394.3 million from $472 million a year ago. Net loss in the quarter was $8.6 million or 30 cents per diluted share compared to net loss of $34.0 million or $1.21 per share a year ago.

Seagate Technology ((STX)) fell 0.3% or 6 cents to $17.99 after the maker of hard-disk drives was downgraded to “neutral” from “buy” by Goldman Sachs Group Inc.

United Parcel Service, Inc ((UPS)) increased 4.9% or $4.86 to $60.27 after the package-delivery company today announced that it expects to exceed its previously announced estimate for fourth quarter 2009 earnings, now anticipating a range of 73 cents to 75 cents per diluted share. The company previously projected earnings of 58 cents to 65 cents per diluted share for this period.

The company also plans to lay-off 1,800 staff.