By Michael Baron, MarketWatch
AHPC Holdings Inc. shares ended Tuesday with a 20.7% gain after the company received a contract to supply its DermaSafe and Glovetex branded examination and specialty latex powder and powder free gloves for the federal government. The term of the contract runs from Dec. 1, 2005 through Nov. 30, 2010. Financial terms weren't disclosed.
Shares of BioCryst Pharmaceuticals Inc. /zigman2/quotes/206499849/composite BCRX -3.55% soared 17.7% after the company said the Food and Drug Administration granted "fast track" designation for its peramivir injection flu treatment. Fast track programs of the FDA are designed to speed the development and review of new drugs to treat serious or life-threatening conditions. See full story.
Decode Genetics Inc. shares added 6.6% after the company said its scientists and colleagues have discovered a major genetic risk factor for Type 2 diabetes. The company said the discovery of a variant in a gene on chromosome 10 represents "the most significant genetic risk factor for type 2 diabetes found to date."
Guidant Corp. shares rose 7.6% after Boston Scientific Corp. /zigman2/quotes/203726728/composite BSX -0.95% lifted its proposal to acquire the company to roughly $27 billion, or $80 a share. The per share consideration values Guidant at $42 in cash and $38 in Boston Scientific common stock. Boston Scientific noted its bid represents a premium of $3.3 billion, or $9 per share, over the competing offer of Johnson & Johnson /zigman2/quotes/201724570/composite JNJ -0.74% , and that Guidant shareholders will own roughly 36% of the combined company. See full story.
Shares of Ivanhoe Energy Inc. rocketed higher by 56.6% after the company said its commercial demonstration facility in California successfully achieved a number of perfomance goals last week related to the use of its heavy oil upgrading technology. Ivanhoe plans to begin testing crude oils from potential partners with an initial focus on heavy crudes from California and Western Canada, including bitumen from Canada's Athabasca Tar Sands region.
Quanex Corp. /zigman2/quotes/206135937/composite NX -1.26% stock added 10.6% after the company raised its first-quarter earnings outlook by 35% Monday, citing better-than-expected results at its building products division and lower scrap costs at its car products division. The Houston-based maker of engineered materials for vehicles and the construction industry said it now expects adjusted earnings of $1.00 to $1.05. The average forecast of analysts polled by Thomson First Call is for earnings of 84 cents a share.
Rentech Inc. shares surged 22.6% after the company signed a master licensing agreement for the use of its Fischer-Tropsch coal-to-liquids technology by DKRW Advanced Fuels LLC. Financial terms weren't disclosed.
Spacehab Inc. /zigman2/quotes/203348115/composite SPAB 0.00% stock gained 11.5% after the company was awarded new work from NASA in support of International Space Station assembly and operations activities. Spacehab, through its contract with Lockheed Martin Corp. /zigman2/quotes/200691238/composite LMT -0.72% , will assist in the removal and replacement of equipment set for launch on the company's cargo carrier, which is being flown on the STS-121 space shuttle mission.
Affiliated Computer Services shares ended Tuesday's session down 7.2% after the company said it's no longer considering selling itself to a group of private equity investors. Recent unsolicited talks with the group have ended, the Dallas-based technology outsourcing company said, and a possible sale is no longer an option. An investor group led by the Texas Pacific Group and including Bain Capital and the Blackstone Group were near a deal to pay more than $8 billion for Affiliated Computer, the New York Times reported on Jan. 3. The company had also been weighing a possible dual class recapitalization proposal, but said an agreement wasn't reached on that alternative either.
Shares of Albany International Corp. /zigman2/quotes/208627197/composite AIN -0.19% lost 9.4% after the company said it expects fourth-quarter earnings of about 36 cents a share, including 20 cents in restructuring charges and an 8 cent gain on tax adjustments. The Albany, N.Y., company said it earned 38 a share in the 2004 fourth quarter. The company said fourth-quarter sales increased 4% to $247.9 million. The company also said it expects full-year earnings of about $2.18 a share. Meanwhile, the board also authorized the repurchase of up to 3.5 million Class A common shares.
Continental Airlines Inc. /zigman2/quotes/206226741/composite CAL -4.10% stock shed 11.5% after the company reported a narrower fourth-quarter net loss, helped by a gain on sale of stock but hurt by almost 58% higher costs of fuel and related taxes as well as sharp competitive challenges. The airline had a loss of $43 million, or 53 cents a share, against a loss of $208 million, or $3.16, in the year-earlier period. In the latest quarter, excluding a $106 million gain on the sale of Copa stock and charges of $21 million, the loss was $128 million, or $1.58. A survey of analysts by Thomson First Call produced a consensus estimate of a loss of $1.68. Revenue rose 17% to $2.85 billion from $2.44 billion. See full story.
Shares of Dana Corp. slumped 20.6% after the company reported a third-quarter loss of $1.27 billion, or $8.50 a share, and sales in the three months to Sept. 30, 2005, of $2.4 billion. In the same period a year ago, the Toledo, Ohio, auto parts maker reported net income of $42 million, or 28 cents a share and sales of $2.11 billion. A valuation allowance on its tax deferred assets reduced quarterly income by $918 million. Dana's loss, excluding its items, was 42 cents a share, and the company said it would file its quarterly report later Tuesday. Analysts polled by Thomson First Call forecast a loss, on average, of 2 cents a share. See full story.
Furniture Brands International Inc. stock gave back 8.2% after CS First Boston downgraded the furniture seller to underperform from neutral, citing valuation and lofty expectations for margin improvement. "Feedback from out channel checks was mixed in December, which was a deceleration from November when the majority of out contacts expressed a positive tone," said Analyst Ivy Zelman. "With the industry environment spotty, we find it difficult to get excited about Furniture Brands' [revenue] considering prolonged market share losses." Meanwhile, Zelman raised the stock's price target to $21 from $18.
Innovex Inc. shares finished down 9.6% after the company reported a fiscal first-quarter loss of $9.77 million, or 51 cents a share, vs. a net loss of $1.01 million, or 5 cents a share, in the year-ago period. Excluding 52 cents a share in restructuring charges, the company earned $160,000, or a penny a share. Revenue rose 26%, to $50.5 million from $40 million last year, and gross margin was 12.2%, compared with 9.7%. Innovex said it plans to move all prototyping and high volume manufacturing to its Thailand manufacturing facility over the next 12 months and divest its etched metal manufacturing business located in Litchfield, Minn. The company expects to reduce its workforce and see annual cost savings of $8 million once the transition is complete.
Shares of LSI Industries Inc. /zigman2/quotes/208810968/composite LYTS -2.66% tumbled 19.7% after the company forecast second-quarter earnings of 18 to 19 cents a share on revenue of $73 million. The average estimate of analysts polled by Thomson First Call was for a profit of 28 cents a share on revenue of $81 million in the period. The Cincinnati-based lighting and graphics products provider also said it now sees fiscal 2006 earnings of 64 to 70 cents a share on revenue of $265 millions to $275 million. Wall Street's current consensus estimate is for 2006 earnings of 94 cents a share on revenue of $306 million. LSI Industries said its graphics business has experienced lower sales volume lately, but expects both sales volume and profits to increase in the fourth quarter. The stock was also downgraded to underperform at Robert Baird.
OneTravel Holdings Inc. stock lost 11.9% after the company said it was unable to file its Form 10-K due to a new audit point that arose last week that will require certain additional audit procedures.
Wegener Corp. /zigman2/quotes/200708383/delayed WGNR 0.00% shares fell 8.7% after the company reported a fiscal first-quarter loss of $643,000, or 5 cents a share. Last year, it earned $112,000, or 1 cent a share. Revenue fell 22% to $5 million from $6.4 million a year ago. The broadcast equipment maker said it expects the majority of its new backlog to be recognized as revenue when it begins shipments toward the end of fiscal 2006 and into fiscal 2007. Wegener, based in Duluth, Ga., also said it continues to expect it will generate an operating loss for the majority of fiscal 2006.
World Airways Holdings Inc. stock closed lower by 5% after the company said representatives of its pilot union will meet with U.S. mediators on Jan. 23. The airline expects to meet Teamsters negotiators for the pilots. The Peachtree City, Ga. carrier said it's seeking an extension of its Nasdaq National Market Listing.