By Michael Baron, MarketWatch
Adherex Technologies shares ended Friday's session higher by 11.4% after the company inked a licensing and development agreement with U.K. pharmaceutical giant GlaxoSmithKline PLC /zigman2/quotes/209463850/composite GSK +1.07% . The deal is for an exclusive license of GSK's oncology product, eniluracil, and an option for GSK to license Adherex's lead biotechnology compound, ADH-1, or Exherin. In addition, it was disclosed that GSK invested $3 million in Adherex's previously announced private placement.
Allegheny Technologies /zigman2/quotes/202946054/composite ATI -3.07% rose 5.8% after the company said it plans to spend $100 million to expand its titanium production capabilities, to be funded from internal cash flow. "We expect over $200 million of annual revenue growth with attractive after-tax returns from these capital projects when they are fully implemented in 2007," it said. The projects include upgrading and restarting ATI's idled titanium sponge facility, constructing a third plasma arc melt cold-hearth furnace and expanding high-value plate products capacity by 25%.
Cintas Corp. /zigman2/quotes/201631915/composite CTAS -0.72% jumped 10.6% after the company reported fiscal fourth-quarter earnings of $83 million, or 48 cents a share, up 14% from $72.7 million, or 42 cents a share, last year. Revenue rose 9.6% to $809.2 million from $738.2 million a year ago. Cintas forecast fiscal 2006 earnings of $1.95 to $2.05 a share on revenue of $3.35 billion to $3.45 billion.
Dura Automotive shares leapt 17.6% after Credit Suisse First Boston upgraded the stock to outperform from neutral and raised its price target to $6 from $4. Analyst Chris Ceraso wrote that the Rochester Hills, Mich.-based auto parts maker should benefit from the recent drop in steel prices. "Even very modest declines in steel costs can have a meaningful effect on earnings for Dura, where net income is close to breakeven, and the share count is less than 19 million," he said in a note to clients.
Shares of Euro Tech Holdings Co. /zigman2/quotes/204780588/composite CLWT +2.50% soared 20.9% after the company said 2004 net income rose 12% to $594,000, on a 17% sales rise to $32.3 million. The Hong Kong-based instruments maker said it managed to have a controlled expansion without substantial cash investment and without hitting the bottom line. It plans to consolidate its Chinese network in the second half.
Itron /zigman2/quotes/208442969/composite ITRI -0.0085% shares rose 9.1% after the company said that earnings and revenue for the second quarter will come in ahead of Wall Street's estimates. Revenue is expected to come in between $132 million and $135 million. Pro forma earnings are expected to come in between 38 cents to 42 cents a share. Analysts were expecting earnings of 35 cents a share on revenue of $128 million, according to consensus forecasts from Thomson First Call. The results were attributed to strong new order bookings.
Keryx Biopharmaceuticals' shares gained 12.5% after the company priced its 5.03 million share public offering at $14.05 each. The company also granted the underwriters options to buy and additional 750,000 shares to cover over-allotments.
Middleby Corp. /zigman2/quotes/201397614/composite MIDD +1.60% shares rose 5.9% after the Elgin, Ill., company priced a secondary offering of 1.2 million shares of its common stock at $56 each. The shares are being sold by William Whitman, the former chairman of the foodservice equipment maker, and members of his family. The offering includes an overallotment option for the sale of an additional 182,006 common shares.
Plug Power /zigman2/quotes/205453512/composite PLUG -7.01% shares leapt 10.7% after the company received an order for 63 GenCore backup fuel cell systems from Tyco Electronics Power Systems, a division of Tyco Electronics. The systems were sold to a leading U.S.-based telecommunications provider for integration into its network over the next few months, the company said.
Pomeroy IT Solutions shares rose 13.4% after the company won a contract to provide an array of technology services, ranging from application development to database management, to an unnamed client in the information technology industry. Pomeroy IT expects the contract to generate revenue of about $150 million over the next three years. It also expects to hire more than 500 people to work in its national consulting practice during the first year of the contract. The Hebron, Ky.-based company said it's the largest services contract it has received in its 25-year history.
Traffix Inc. shares gained 9.9% after the Pearl River, N.Y., interactive media company reported earnings of $700,000, or 5 cents a share, for its fiscal second quarter with revenue rising 82% year-over-year to $16.6 million.
Tyson Foods /zigman2/quotes/201117502/composite TSN +0.20% rose 5.1% after Merrill Lynch raised its rating on the poultry producer to buy.
W.W. Grainger /zigman2/quotes/200853098/composite GWW -0.56% shares advanced 7.5% after the company reported second-quarter earnings of $81.6 million, or 89 cents a share, up from $66.6 million, or 72 cents a share in the same period a year ago. The results topped the average analyst estimate compiled by Thomson First Call of 82 cents a share, amid an improvement in gross profit margins. Revenue rose 9% to $1.37 billion from last year's $1.26 billion, in line with analyst forecasts. The facilities maintenance products supplier raised its 2005 earnings estimate to $3.40 to $3.60 a share from $3.20 to $3.45 a share.
Comtech Group shares ended Friday's session down 5.9% after the company priced an offering of 7.3 million shares of its common stock at $5.50 each. The China-based designer of modules for electronic devices said the offering includes an overallotment option for the sale of an additional 1.4 million shares.
Digi International /zigman2/quotes/203836067/composite DGII -4.01% shares plummeted 16.8% after the Minneapolis maker of networking devices reported a profit of $2.5 million, or 11 cents a share, up slightly from its year-ago equivalent profit of $2.4 million, or 11 cents a share. The company said the latest performance was at the high end of its outlook. Excluding a charge for acquired in-process research and development, Digi earned 12 cents a share in the quarter, topped Wall Street's consensus view by 3 cents. Looking ahead, however, the company sees earnings of 12 to 17 cents a share for the fourth quarter, compared to the average estimate of analysts polled by Thomson First Call for a profit of 17 cents a share.
Investors Financial Services Corp. shares dropped 18 % after the company reported a 30% gain in second-quarter earnings but forecast full-year earnings below those expected by analysts. Net income for the second quarter was $44.1 million, or 64 cents a share, on operating revenue of $248.9 million compared to net income of $34 million, or 50 cents a share, on revenue of $216.5 million for the same period last year. Analysts were expecting earnings of 59 cents a share, according to Thomson First Call. For the full 2005 fiscal year, the company said earnings per share is expected to grow 10% from 2004, which would imply earnings of $2.30 a share. Analysts were expecting earnings of $2.50 a share for the year.
Rambus /zigman2/quotes/208867483/composite RMBS -3.89% shares lost 7% after the company reported second-quarter earnings of $5.4 million, or 5 cents a share, down 36% from $8.3 million, or 8 cents a share. Revenue rose 14% to $40 million, up from $35 million a year ago, said the chip technology company. Los Altos, Calif.-based Rambus said the second half of the year is a challenge to forecast because of the number of patent-license agreements and renewals that it's currently negotiating.
Schweitzer-Maudit International /zigman2/quotes/208081440/composite SWM -1.73% shares dropped 11.5% after the company said it expects second-quarter earnings of about 38 cents a share, less than its previous expectations. The current average estimate of analysts polled by Thomson First Call is for a profit of 54 cents a share in the June period. The Alpharetta, Ga., paper supplier said results were hurt by inflationary cost increases, reflected in higher purchased energy, purchased materials and labor and benefit expenses, as well lower average selling prices due to an unfavorable product mix. Looking ahead, the company said it expects earnings of $1.40 to $1.50 a share for the full year.
Symbol Technologies shares slid 10.8% after the company cut its second-quarter revenue forecast to $425 million to $430 million and said it has named a new chief financial officer. The company previously expected revenue of $440 million in the period. Symbol appointed Sal Iannuzzi, currently senior vice president and chief administrative and control officer, as its chief financial officer replacing the departing Mark Greenquist.