Movers & Shakers: Tuesday’s biggest gaining and declining stocks

Jan.29, 2008 in Market Outlook

3M, AmEx, Countrywide, JetBlue, more

By MarketWatch

Last Update: 4:29 PM ET Jan 29, 2008

SAN FRANCISCO (MarketWatch) — Shares of the following companies were among those
making notable moves in the U.S. stock market Tuesday.

Advancers

3M Co.’s (MMM) shares were slightly higher. Fourth-quarter net income declined
28% to $851 million, or $1.17 a share, from $1.18 billion, or $1.57, a year
earlier. The year-ago results were helped by 47 cents of gains from the sale of
its pharmaceutical business. Adjusted earnings rose to $1.19 a share from $1.04.
The St. Paul, Minn., technology company’s sales grew 7.3% to $6.21 billion.
Analysts polled by Thomson Financial predicted $1.17 a share on revenue of $6.14
billion. See full story.
Click for Detail

Airgas Inc.’s (ARG) shares gained 6.1%. Fiscal third-quarter net income rose to
$56.8 million, or 67 cents a share, from $32.5 million, or 40 cents a share, a
year earlier. The year-ago results included a 10-cent charge to retire debt. The
industrial-gas distributor’s sales climbed to $1.01 billion from $787.4 million.
Analysts had expected 65 cents a share on revenue of $1 billion. For the fiscal
fourth quarter, Airgas expects earnings of 71 cents to 73 cents a share.

American Express (AXP) shares were higher. Fourth-quarter net income fell 10%
after a charge to its loan-loss reserves. See full story
Click for Detail

ArvinMeritor Inc. (ARM) shares gained 7.5%. It swung to a fiscal first-quarter
loss of $12 million, or 17 cents a share, from a year-earlier profit of $7
million, or 10 cents a share. The loss from continuing operations for the latest
quarter was 1 cent a share, while adjusted earnings from continuing operations
were 8 cents a share. A Thomson Financial survey of analysts predicted earnings
of 7 cents a share.

Avery Dennison Corp.’s (AVY) shares were up 7.8%. Fourth-quarter net income
declined 24% to $79.4 million, or 81 cents a share, from $104.7 million, or $1.04
a share, a year earlier, hurt by restructuring and asset impairment charges and
costs from the integration of Paxar Corp. Adjusted earnings were $1.08 a share
for the latest period. Sales grew 21% to $1.71 billion. Analysts polled by
Thomson Financial expected 96 cents a share on revenue of $1.68 billion. The
Pasadena, Calif., maker of office products expects 2008 earnings of $3.80 to
$4.20 a share on revenue growth of 9.5% to 12.5%. Adjusted earnings are expected
at $4.15 to $4.55 a share.

Bemis Co.’s (BMS) shares rose. Fourth-quarter net income rose 2.7% to $42.7
million, or 42 cents a share, from $41.6 million, or 39 cents a share, a year
earlier. The Minneapolis packaging materials manufacturer said sales increased
1.3% to $912.7 million. Analysts polled by Thomson Financial expected 40 cents on
revenue of $901 million. Bemis expects first-quarter earnings of 40 cents to 43
cents a share.

Burlington Northern Santa Fe Corp.’s (BNI) shares gained. Fourth-quarter net
income fell to $517 million from $519 million a year ago. On a per-share basis,
earnings increased to $1.46 from $1.42, as the recent quarter had fewer shares
outstanding. A Thomson Financial survey of analysts predicted earnings of $1.39 a
share. The Fort Worth, Texas, freight railroad operator said revenue rose 9.4% to
$4.24 billion.

Cardinal Health Inc.’s (CAH) shares gained 5.2%. Fiscal second-quarter earnings
fell 56% to $324.7 million, or 89 cents a share, from $739.3 million, or $1.80 a
share, a year earlier. Earnings from continuing operations rose to 89 cents from
77 cents. A Thomson Financial survey of analysts projected 87 cents a share for
the quarter ended Dec. 31. The Dublin, Ohio, provider of health-care products and
services said profit was hurt by a $10 million charge for the voluntary recall of
its Alaris Pump, bringing the total charges associated with the recall to $14
million. Revenue rose to $23.28 billion from $21.78 billion.

Carpenter Technology Corp. (CRS) shares added 7.8%. Second-quarter net income
rose to $56.1 million, or $1.14 a share, from $48.1 million, or 91 cents, in the
year-ago period. Profit from continuing operations rose to $1.17 from 91 cents.
Revenue climbed to $446 million from $421 million. Analysts surveyed by Thomson
Financial forecast $1.10 a share. “We continued to experience strong demand from
the energy market, which also contributed to the 33% jump in our international
sales,” the Wyomissing, Pa., alloys maker said. “Growth in these markets helped
offset domestic weakness in our economically sensitive markets, including
automotive, consumer, and industrial.”

CNX Gas Corp. (CXG) shares jumped 15%. Consol Energy Inc. said Tuesday it intends
to acquire all shares of CNX Gas in a $932 million transaction. Consol said it
would offer 0.4425 share for each CNX Gas share. The deal circumvents the
recommendation of CNX Gas’s directors, Consol said. Consol, (CNX) Pittsburgh,
owns about 82% of CNX Gas’s 151 million shares. CNX Gas said its board has formed
a committee to evaluate the offer. Consol Energy closed Monday at $76.16, up
4.3%, while CNX Gas added 6% to $30.10.

Convergys Corp. (CVG) shares gained 6.5%. It said Tuesday its fourth-quarter
earnings edged higher to $45.3 million, or 34 cents a share, compared to $44.5
million, or 32 cents, a year ago. Revenue grew to $713.7 million in the period,
compared to $720.0 million a year ago.

Con-Way Inc.’s (CNW) shares gained 4.9%. Fourth-quarter net income fell to $36.3
million, or 73 cents a share, from $84.2 million, or $1.66 a share, in the
year-earlier period. The trucking company’s revenue rose to $1.2 billion from
$998.6 million. Analysts had expected 82 cents a share on revenue of $1.14
billion.

Countrywide Financial Corp., (CFC) shares climbed 6.1%. It on Tuesday reported it
swung to a fourth-quarter loss of $422 million, or 79 cents a share. The
provision for credit losses totaled $924 million, down from $937 million in the
third quarter. Loan production in the quarter fell to $61 billion from $118
billion a year earlier due to tighter underwriting and guidelines industrywide,
as well as economic conditions and other factors, CFC said.

Crane Co. (CR) shares jumped 11%. It reported fourth-quarter net income of $45.2
million, or 74 cents a share, compared with $38 million, or 61 cents, in the
year-earlier period. Revenue rose to $666 million from $582 million. Analysts had
predicted 69 cents a share on $659 million in sales. The company forecast
full-year 2008 earnings of $3.45 to $3.60 a share, above analysts’ expectations
of $3.11.

Dow Chemical (DOW) shares were higher. Fourth-quarter profit was essentially
halved due to sharply higher raw-material and energy costs.

Enbridge Energy Partners LP’s (EEP) shares were higher. Net income rose to $64.5
million, or 59 cents a unit, from $51.2 million, or 56 cents, in the year-earlier
period. The oil and gas transportation systems owner’s revenue rose to $2.12
billion from $1.66 billion.

Endo Pharmaceutical Holdings Inc. (ENDP) shares rose 7.5%. President and Chief
Executive Peter Lankau resigned. The specialty pharmaceutical company also said
it expected adjusted earnings at $1.79 to $1.84 with sales at $1.05 billion to
$1.08 billion.

Hanover Insurance Group Inc.’s (THG) shares edged up 9%. Fourth-quarter net
income rose to $75.8 million, or $1.44 a share, from $45.5 million, or 88 cents a
share, a year earlier.

IAC/Interactive Corp. (IACI) shares were higher. It said Tuesday that Liberty
Media’s attempt to assume control of IAC by removing Barry Diller and other
members of IAC’s board is “preposterous” and “incomprehensible.” In a filing in
Delaware Chancery Court on Monday, Liberty said it delivered a stockholder
consent to IAC that removed board members including Diller, who serves as
chairman, and appointed new directors.

JetBlue Airways Corp. (JBLU) shares surged 20%. It swung to a fourth-quarter loss
of $4 million, or 2 cents a share, from a year-earlier profit of $17 million, or
10 cents a share. The New York airline’s operating revenue rose 17% to $739
million from $633 million. Analysts polled by Thomson Financial expected a loss
of 5 cents a share on revenue of $731 million. Fourth-quarter traffic rose 7.1%
and capacity rose 11.5%.

Kinetic Concepts, Inc. (KCI) shares rose. Fourth-quarter net income rose 30% to
$66.5 million, or 92 cents a share, from $51.4 million, or 73 cents, a year
earlier. Revenue climbed 17% to $434 million. The average forecast of six
analysts polled by Thomson Financial was 92 cents a share and sales of $424
million. The medical-technology firm expects 2008 earnings of $3.85 to $3.95 a
share on revenue of $1.77 billion to $1.82 billion.

KKR Financial Holdings LLC’s (KFN) shares rose 8.3%. Fourth-quarter net income
rose to $59.9 million, or 52 cents a share, from $37.4 million, or 46 cents a
share, a year earlier. Analysts had expected 54 cents a share.

Eli Lilly & Co. (LLY) shares moved up. Fourth-quarter earnings rose to $854
million, or 78 cents a share, from $132 million, or 12 cents, in the year-ago
period. Excluding charges, the latest earnings were 97 cents a share. Revenue
increased 22% to $5.19 billion from $4.25 billion. Analysts surveyed by Thomson
Financial forecast earnings of 89 cents a share and revenue of $4.8 billion. The
drug giant forecast adjusted 2008 earnings of $3.80 to $3.95 a share, including a
charge of 5 cents a share for a licensing transaction. The Wall Street target for
Lilly’s 2008 earnings is $3.88 a share.

Meritage Homes Corp. (MTH) shares rallied 24%. It swung to a fourth-quarter loss
of $128.8 million, or $4.91 a share, from profit of $9 million, or 34 cents a
share, a year earlier. Analysts had predicted a fourth-quarter loss of $3.52 a
share.

NVR Inc. (NVR) shares were gained. Fourth-quarter profit fell to $67.3 million,
or $11.72 a share, from $135.2 million, or $20.86 a share, in the year-ago
period. The Reston, Va., residential builder’s net income was lowered by about
$10.32 a share as a result of land-deposit-impairment charges. New orders in the
quarter fell 35% from a year earlier to 1,948 units. The cancellation rate rose
to 32% from 27% in the third quarter. The average sales price of new orders in
the fourth quarter declined 13% from a year earlier.

Occidental Petroleum (OXY) shares gained 6.1%. Fourth-quarter net income rose 56%
to $1.45 billion, or $1.74 a share, from $930 million, or $1.09 a share in the
year-ago period. The Los Angeles oil giant was expected to earn $1.69 a share,
according to a survey of analysts by Thomson Financial.

Polaris Industries Inc. (PII) rose. Fourth-quarter net income increased 16% to
$37.7 million, or $1.06 a share, from $32.4 million, or 83 cents a share, in the
year-earlier period. Profit from continuing operations was $1.07 a share against
93 cents. The Minneapolis producer of snowmobiles and all-terrain vehicles said
rose 21% to $541.4 million. Analysts surveyed by Thomson Financial expected $1.04
a share on revenue of $505 million.

Quintana Maritime Ltd. (QMAR) shares surged 30%. Excel Maritime Carriers Ltd.
agreed to pay $13 cash plus 0.4084 share for each Quintana share. The deal values
Quintana at $26.48 a share, a 57% premium to its closing price on Monday of
$16.89.

Sepracor Inc. (SEPR) shares were higher. It is reviewing its government-price
reporting on certain best-price practices and will likely restate its financials
for all periods since 2002 to reflect $80 million to $100 million in new rebate
payments. Separately, Sepracor said it acquired exclusive U.S. rights to
Nycomed’s Alvesco HFA and Omnaris AQ products, as well as the pipeline for
ciclesonide, the active ingredient in the drugs. Nycomed will receive $150
million up front and could receive $280 million in milestone payments.

Smurfit-Stone Container Corp. (SSCC) shares gained 13%. It handed in
fourth-quarter profit of $41 million, or 16 cents a share, up from $22 million,
or 9 cents a share, a year earlier. Sales came in at $1.84 billion, up from $1.82
billion. Analysts had expected 8 cents a share on sales of $1.88 billion.

T. Rowe Price (TROW) shares were higher. Fourth quarter profit of $190.7 million,
or 68 cents a share compared to $148.9 million, or 53 cents a share a year ago.
Net revenues at the Asset manager firm rose to $597.8 million from $489.1 million
a year ago. Investment advisory fees climbed to $506.6 million from $409.7
million in the year-ago quarter. Analysts polled by Thomson First Call had
expected the firm to earn 63 cents a share in the quarter.

Trane Inc.’s (TT) shares were higher. Fourth-quarter earnings from continuing
operations fell to 32 cents a share from 36 cents a share a year earlier. The
Piscataway, N.J., maker of heating and ventilation equipment said adjusted
earnings from continuing operations increased to 33 cents a share from 26 cents.
A Thomson Financial survey of analysts projected 29 cents a share. Sales rose to
$1.82 billion from $1.6 billion. The company expects 2008 sales growth of 5% to
6% and profit from continuing operations of $473.5 million to $503.5 million.

Unisys Corp.’s (UIS) shares rallied 15%. fourth-quarter net income fell to $13.8
billion, or 4 cents a share, from $21.3 million, or 6 cents a share, a year
earlier. The Blue Bell, Pa., technology consulting company said revenue declined
1.1% to $1.54 billion. Analysts polled by Thomson Financial expected 12 cents on
revenue of $1.5 billion.

Unum Group (UNM) shares gained 5.9%. Fourth-quarter net income came in at $160.5
million, or 44 cents a share, down from $276.1 million, or 80 cents, a year
earlier.

Shares of USG Corp., (USG) the Chicago building-products company, were higher. It
swung to a fourth-quarter loss from a year-earlier profit on 7.3% lower sales.
The loss was $28 million, or 28 cents a share, compared with net income of $100
million, or $1.11, in the year-earlier period. Shares outstanding rose 10% to 99
million. Sales were $1.2 billion against $1.29 billion.

Valero Energy Corp.’s (VLO) shares jumped 10%. Fourth-quarter net income fell
49%, as an inability to pass the rising cost of crude oil on to consumers
resulted in slimmer margins. Shares traded higher in the pre-market as earnings
beat estimates. The nation’s largest oil refiner reported net income of $567
million, or $1.02 a share, compared with $1.11 billion, or $1.80 a share, a year
earlier. Year-earlier results included a divestiture gain of 21 cents a share and
6 cents a share in earnings from discontinued operations.

Washington Mutual Inc. (WM) shares rose 6.8%. It said it expects to open 150 to
200 new branches in 2008, The Associated Press reported Tuesday, citing comments
by Chief Executive Kerry Killinger at an analyst conference in New York.
Additionally, Killinger told analysts that higher-than-expected net interest
income and the bank’s exit from subprime loans will help Washington Mutual
through a difficult 2008, the AP reported.

Zimmer Holdings Inc.’s (ZMH) shares soared 13%. Fourth-quarter net income rose
7.8% to $263.8 million, or $1.12 a share, from $244.7 million, or $1.02 a share,
a year earlier. Adjusted earnings rose 16% to $1.18 a share. The Warsaw, Ind.,
health products company said net sales rose 15% to $1.07 billion. Analysts polled
by Thomson Financial expected $1.04 a share on revenue of $1.03 billion. Zimmer
expects adjusted earnings for 2008 of $4.20 to $4.25 a share on net sales up 10%
to 11%.

Decliners

Albemarle Corp.’s (ALB) shares slumped 9.5%. Fourth-quarter earnings fell to
$58.6 million, or 60 cents a share, from $63 million, or 65 cents a share, a year
earlier. The producer of polymer additives said revenue rose to $599.2 million
from $584.5 million. Analysts had expected 59 cents a share on revenue of $611
million.

Amylin Pharmaceuticals Inc.’s (AMLN) shares lost 8%. Fourth-quarter loss widened
to 57 cents a share from 45 cents a year earlier, hurt in part by non-cash
expense from the adoption of an employee stock ownership plan. The
biopharmaceutical company said revenue rose to $222 million from $163.4 million.

Atheros Communications Inc. (ATHR) shares fell. It swung to a fourth-quarter
profit of $13.4 million, or 22 cents a share, from a loss of $1.9 million, or 2
cents a share, a year earlier. The developer of semiconductor system services for
wireless products said revenue increased to $114.3 million from $87.8 million.
Analysts had expected 30 cents a share on revenue of $114 million.

EMC Corp.’s (EMC) shares tumbled 6%. Fourth-quarter net income rose to $525.7
million, or 24 cents a share, from $388.8 million, or 18 cents, a year earlier. A
Thomson Financial survey of analysts predicted earnings of 22 cents a share. The
Hopkinton, Mass., data-systems company’s revenue grew to $3.83 billion from $3.21
billion. The company expects 2008 earnings of 78 cents a share. Earnings
excluding items for the year are expected to grow 14% to $1.04 a share. EMC also
sees revenue growth of 13% to $15 billion in 2008.

Energizer Holdings Inc.’s (ENR) shares fell 3%. Fiscal first-quarter net income
fell 16% to $102.6 million, or $1.74 a share, from $122.3 million, or $2.08 a
share, a year earlier. Earnings in the recent period were reduced by 39 cents a
share by the inclusion of Playtex Products Inc., which the company acquired in
October. The St. Louis battery maker’s sales rose 24% to $1.19 billion from
$959.2 million, a year ago.

Gentex Corp. (GNTX) shares fell 4.8%. It reported Tuesday that fourth-quarter net
income rose 3% to $31.8 million. Earnings per share were flat at 22 cents,
missing the average analyst estimate of 23 cents, according to a survey by
Thomson Financial. The results were hurt by a $2.9 million pretax litigation
judgment related to a lawsuit from rival automotive-mirror maker Muth Mirror
Systems.

Legg Mason Inc. (LM) shares were lower. It named Mark Fetting president and chief
executive, succeeding Raymond Mason. Fetting, a senior executive vice president
in charge of the company’s worldwide mutual fund and managed account businesses,
will also serve on the board. Mason will serve as non-executive chairman.

McDonald’s (MCD) shares were lower. It was downgraded to peer perform from
outperform by Bear Stearns on concerns over slowing U.S. sales. The broker also
said while there’s no evidence of a downturn in European and international sales,
the non-U.S. business is historically more economically sensitive than the
operations in the U.S.

Paccar Inc.’s (PCAR) lost 5%. Fourth-quarter net income fell 31% to $261.1
million, or 71 cents a share, from $380.5 million, or $1.01 a share, a year
earlier. The Bellevue, Wash., truck manufacturer said truck revenue declined 14%
to $3.43 billion from $3.97 billion, while financial services revenue increased
26% to $327.3 million from $260.7 million. On average, analysts polled by Thomson
Financial expected earnings of 82 cents a share on revenue of $3.58 billion.

Pepsi Bottling Group Inc.’s (PBG) fell 9.6%. Fourth-quarter net income dropped
39% to $81 million, or 35 cents a share, from $133 million, or 55 cents a share,
a year earlier. Results from the latest quarter included restructuring charges,
an asset-disposal charge and tax items totaling 5 cents a share, while
year-earlier results included a gain of 22 cents a share related to the reversal
of tax reserves. Revenue grew 7.2% to $4.04 billion from $3.77 billion. Analysts
polled by Thomson Financial expected 38 cents a share on revenue of $4.03
billion. For 2008, the Somers, N.Y., beverage company expects comparable earnings
of $2.30 to $2.38 a share, operating-rofit growth of 4% to 6% and an increase in
revenue of 6% to 7%.

Pilgrim’s Pride Corp.’s (PPC) shares fell 7.3%. Fiscal first-quarter loss widened
to $32.3 million, or 49 cents a share, from $8.74 million, or 13 cents a share, a
year earlier. The Pittsburg, Texas, poultry product manufacturer said higher
feed-ingredient costs and a charge of $13 million, or 20 cents a share, for
adjustments in deferred taxes as a result of a new law in Mexico contributed to
the higher losses.

Plum Creek Timber Co. (PCL) shares fell 4%. It reported fourth-quarter earnings
of $118 million, or 68 cents a share, compared with $69 million, or 39 cents, a
year ago. Revenue was $504 million, up from $379 million. Analysts had predicted
the lumber company would post a profit of 43 cents a share on sales of $414.7
million. The company said it expects to earn $1.15 to $1.40 per share in 2008.

SanDisk Corp. (SNDK) shares lost. It reported fourth-quarter net income of $105.8
million, or 45 cents a share, compared with a loss of $35.1 million, or 17 cents,
for the year-earlier period. Revenue was $1.25 billion from $1.16 billion.
Analysts had expected the company to report earnings of 64 cents a share on
revenue of $1.27 billion. See full story
Click for Detail

Sherwin-Williams Co.’s (SHW) shares fell 3.1%. Fourth-quarter net income rose
2.2% to $100.8 million, or 80 cents a share, from $98.7 million, or 73 cents a
share, a year earlier, boosted in part by strong sales in its global group and
acquisitions. The Cleveland paint maker said sales increased to $1.85 billion
from $1.79 billion a year ago. See full story.
Click for Detail

U.S. Steel Corp.’s (X) shares fell 6.8%. Fourth-quarter net income dropped 88% to
$35 million, or 29 cents a share, from a year earlier, by inventory-transition
effects and a charge for staff cuts. The Pittsburgh steelmaker’s sales climbed
20% to $4.54 billion. Analysts surveyed by Thomson Financial predicted $2.19 a
share on revenue of $4.3 billion. U.S. Steel expects first-quarter results to
reflect the volatile costs and pricing in its three major segments.

VMware Corp. (VMW) shares plunged 34%. It reported fourth-quarter profit of $78
million, or 19 cents a share, more than doubling the $31 million, or 9 cents,
that the virtualization-software developer earned in the year-earlier period.
Revenue rose 80% to $412 million. Analysts had forecast VMware to earn 24 cents a
share on $417 million in sales. See full story
Click for Detail

Waddell & Reed Financial Inc. (WDR) shares fell. Fourth-quarter profit rose 17%
to $35.1 million, or 42 cents a share, from $30 million, or 36 cents, a year
earlier. Revenue rose 27% to $236.1 million. Analysts had been expecting 42 cents
a share on revenue of $229 million.

Wal-Mart Stores Inc. (WMT) shares were slightly higher. It said Tuesday it’s
lowering prices by 10% to 30% on thousands of items to help shoppers save money
against a backdrop of economic uncertainties. The world’s largest retailer also
said it’s also offering no interest for 18 months on purchases of $250 or more
with a Wal-Mart credit card. See full story.
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