July 26, 2013 / 6:10 PM / 4 years ago

MARKET PULSE-SolarWinds, Gentium, Expedia, Hutchinson, Basic Energy

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July 26 (Reuters) - Some U.S. stocks on the move on Friday:


U.S. stocks fell, putting the Dow and the S&P 500 on track to post their first negative week in five ahead of a busy data week and as a strong July winds down. The Dow Jones industrial average dropped 0.6 percent, the Standard & Poor’s 500 Index 0.4 percent and the Nasdaq Composite Index 0.2 percent.

** GENTIUM SPA, $15.11, up 55 pct (1302 ET)

The European Medicines Agency issued a positive opinion for the biopharmaceutical company’s drug Defitelio for use in patients undergoing blood stem-cell transplantation.

** HUTCHINSON TECHNOLOGY INC, $3.91, down 29 pct (1313 ET)

The maker of suspension assemblies for hard disk drives reported a bigger-than-expected quarterly loss as the company was hit by a slowdown in production volume.

** EXPEDIA INC, $48.48, down 25 pct (1311 ET)

Expedia’s dismal results sparked a sell-off that wiped more than $2 billion off the online travel agency’s market value and prompted at least nine brokerages to cut their price targets on the stock.


The pharmaceutical company priced a public offering of 1.5 million units of common shares and warrants at $2.05 per unit, a discount of 20 percent to the stock’s Thursday close.

** SOLARWINDS INC, $35.54, down 22 pct (1308 ET)

At least four brokerages cut their price targets on the network management software maker’s stock after the company forecast third-quarter results below market expectations as it struggles with slowing growth in its licensing business. The company also narrowly missed revenue estimates for the second quarter.

** MITEK SYSTEMS INC, $6.10, up 16.8 pct (1033 ET)

The software maker reported higher-than-expected third-quarter revenue on Thursday, helped by strong demand for its flagship mobile imaging software.

** TELECOMMUNICATION SYSTEMS INC, $2.64, down 17 pct (1343 ET)

The wireless communication technology provider reported a surprise second-quarter loss on Thursday, citing lower government pass-through sales.

** ALTRA HOLDINGS INC, $25.14, down 16 pct (1054 ET)

The maker of electromechanical power transmission products reported lower-than-expected quarterly results and cut its full-year outlook.

** ACTIVISION BLIZZARD INC, $17.47, up 15 pct (1301 ET)

Vivendi plans to sell the bulk of its stake in Activision Blizzard to the video games maker and its management for $8.2 billion, the French conglomerate’s second blockbuster deal in a week.

** ZYNGA INC, $2.95, down 15 pct (1302 ET)

Zynga shares fell as much as 18.6 percent after the maker of “FarmVille” said it would abandon plans for real-money gaming in the United States, prompting at least three brokerages to cut their price targets on the stock.

** BRIGHTCOVE INC, $11.06, up 14.7 pct (1053 ET)

The online video publisher on Thursday reported a smaller-than-expected first-quarter adjusted loss due to strong demand for its products, which also led to a higher subscription and support revenue.

The company raised its forecast for full-year revenue, which topped Wall Street estimates.

** CIRRUS LOGIC, $17.54, down 14 pct (1342 ET)

The company, which makes analog and audio chips for Apple’s iPhone and iPad, on Thursday reported lower-than-expected first-quarter revenue and forecast current-quarter revenue below analysts’ estimates.

The company lowered its long-term gross margin target to about the mid-40s in May, which Oppenheimer & Co analyst Rick Schafer attributed to the content opportunity at Apple reaching its limit. “Content appears to have reached a ceiling. With a lack of new features, AAPL is squeezing the supply chain,” he said in a note on Friday.

** TEMPUR SEALY INTERNATIONAL INC, $37.01, down 12 pct (1309 ET)

The mattress maker slashed its full-year profit forecast as it continued to battle weak sales at its high-end Tempur brand in North America, while the acquisition of the mass-market Sealy brand dragged down second-quarter gross margins.

** BASIC ENERGY SERVICES INC, $12.27, down 11 pct (1115 ET)

The company, which rents out drilling rigs, posted a net loss in the second quarter compared with a profit a year earlier. The company’s earnings took a hit because of an oversupplied U.S. land drilling market as oil and gas producers cut costs by using more efficient rigs. Moreover, natural gas drilling in North America remains low due to weak gas prices.

** CONSTANT CONTACT INC, $19.19, up 10.6 pct (1152 ET)

The online marketer’s second-quarter results topped analysts’ estimates on Thursday as it won new customers. The company’s average monthly revenue per unique customer (ARPU) for the quarter was $41.79, up 4.5 percent from a year earlier.

At least three brokerages raised their price target on the company’s stock.

** MONOTYPE IMAGING HOLDINGS INC, $23.80, down 10.6 pct (1104 ET)

The maker of software for creating typesetting and typeface designs reported second-quarter results below analysts’ estimates. The company also forecast current-quarter results below analysts’ expectations and lowered the top end of its full-year revenue outlook.

** NETGEAR INC, $29.92, down 9.3 pct (1103 ET)

RBC Capital Markets cut its rating on the stock to “underperform” from “sector perform” and lowered its price target to $27 from $28, citing concerns over the company’s deteriorating core business.

Wedbush Securities Inc downgraded the stock to “underperform” from “sector perform” and cut its price target to $27 from $28, while Lazard Capital Markets cut its share-price target to $40 from $45.

** OUTERWALL INC, $57.22, down 12 pct (1341 ET)

The operator of Redbox video rental kiosks forecast weaker-than-expected current-quarter results.

** DECKERS OUTDOOR CORP, $54.21, down 8 pct (1340 ET)

The company’s quarterly revenue missed Wall Street estimates as demand fell for its UGG brand of popular sheepskin boots.

** ADVANTEST CORP, $13.88, down 8 pct (1017 ET)

The Japan-based chip-making equipment producer reported an operating loss of 3.3 billion yen ($33 million) for the quarter ended June 30, hurt by rising foreign currency-denominated costs.

J.P. Morgan Securities cut its rating on the stock to “underweight” from “overweight” and reduced its price target by 32 percent to 1,300 yen, saying “we expect the next three months will be an off-season before the next phase of profit growth.”

** BRIGGS & STRATTON CORP $19.66, down 7.5 pct (1116 ET)

The world’s largest producer of gasoline engines for outdoor power equipment forecast fourth-quarter and full-year adjusted profit largely below Wall Street estimates.

“An extremely slow start to the spring lawn and garden season and a cautious approach to managing inventories after last year’s drought has impacted the U.S. and European markets through the end of June,” CEO Todd Teske said.

Briggs and Stratton also makes snow throwers, standby generators and lawn and garden powered equipment.

** CELESTICA INC, $10.16, up 7 pct (1320 ET)

The contract electronics manufacturer posted its first rise in profit in five quarters, sending its stock up the most in two years and allying concerns about its growth after it ended a contract with BlackBerry Ltd.

** VERTEX PHARMACEUTICALS INC, $81.50, down 7 pct (1309 ET)

The pharmaceutical company said U.S. health regulators have placed a partial clinical hold on a mid-stage study of an experimental oral hepatitis C treatment because of potential liver problems.

UBS Investment Research analyst Matthew Roden downgraded the stock to “neutral” from “buy”. He also pushed back his expectation for the drug’s launch by a year, lowering the probability of its success to 25 percent from 35 percent. “The pace of advancement will likely slow, as ongoing safety reviews will become more extensive”, he wrote in a note.

** STARBUCKS CORP, $72.68, up 6.6 pct (1339 ET)

Starbucks on Thursday posted a bigger than expected jump in quarterly profit after new fruit “Refresher” energy drinks and seasonal Frappuccino iced beverages helped drive more visits to shops in the United States, its top market.

** LOGMEIN INC, $29.73, up 5 pct (1339 ET)

The remote-access software maker reported a 20 percent rise in quarterly revenue and raised its full-year outlook.

** QLIK TECHNOLOGIES INC, $29.33, down 7 pct (0942 ET)

The business software maker forecast a third-quarter profit below analysts’ estimates and lowered its full-year profit outlook, citing higher investment into the upgraded version of its QlikView business intelligence software.

** KANDI TECHNOLOGIES CORP, $5.15, up 6.9 pct (1018 ET)

The vehicle maker said it delivered 100 electric cars for the official launch of a public electric vehicle (EV) sharing system in China’s Hangzhou city. Kandi said the city has a five-year plan to establish a mini-public transportation system that would include up to 100,000 self-serving rental EVs.

** GLOBAL PAYMENTS INC, $45.87, down 6 pct (0935 ET)

The payment processor reported lower-than-expected fourth-quarter profit as it incurred higher interest expenses and earned lower revenue from Canada.

Interest and other expenses more than doubled to $8.06 million. The company forecast full-year revenue of $2.51 billion to $2.56 billion, well above analysts’ expectation of $2.40 billion. UBS downgraded the company’s stock to “neutral” from “buy”.

** FREESCALE SEMICONDUCTOR LTD, $15.30, down 6 pct (1101 ET)

Brokerage Oppenheimer & Co downgraded the chipmaker’s stock to “perform” from “outperform”, according to Theflyonthewall.com.

The stock was one of the top percentage losers on the New York Stock Exchange.

** TRIUMPH GROUP INC, $78.99, down 6 pct (1058 ET)

The maker of aerostructures and other aircraft components on Thursday reported lower-than-expected first-quarter results and forecast full-year 2014 profit below estimates.

** PRINCIPAL FINANCIAL GROUP INC, $42.51, up 5 pct (1042 ET)

The insurer and asset manager reported a 33 percent rise in second-quarter profit, beating analysts’ estimates due to higher premium and fees income.

Revenue from its retirement and investor services business was up 22 percent at $172.3 million. Fees and other revenues climbed 27 percent to $804.3 million.

** MCKESSON CORP, $124.28, up 5 pct (1026 ET)

The pharmaceutical wholesaler, which has been dealing with activist investors seeking to replace some of its board members, on Thursday reported a higher-than-expected quarterly profit.

The company also raised its full-year earnings forecast and increased dividend payments in moves that may help placate shareholders leaning toward backing efforts to remove current directors.

Four brokerages -- Robert W. Baird & Co, ISI Group, Mizuho Securities and Credit Suisse -- raised their price targets on the stock.

** TESLA MOTORS INC, $129.64, up 4.4 pct (0941 ET)

Deutsche Bank raised its rating on the electric car maker’s stock to “buy” from “hold”, according to Theflyonthewall.com.

** HALLIBURTON CO, $46.23, up 4 pct (0950 ET)

The company has agreed to plead guilty to destroying evidence related to the 2010 Gulf of Mexico oil spill, the U.S. Department of Justice said on Thursday.

** HEALTHSOUTH CORP, $33.14, up 4 pct (0951 ET)

The hospital operator on Thursday reported second-quarter results that beat analysts’ estimates due to strong demand for its services. HealthSouth also raised its full-year outlook for income from continuing operations.

Stifel Nicolaus, Deutsche Bank and Mizuho Securities raised their price targets on the company’s stock.

** WESTERN REFINING INC, $30.53, up 3.2 pct (1145 ET)

The refiner’s unit, Western Refining Logistics LP, has filed with the Securities and Exchange Commission for an initial public offering. The company develops storage tanks, pipelines, and other assets.

** DOLBY LABORATORIES INC, $32.95, down 3.5 pct (1039 ET)

The audio technology licensor cut its full-year revenue outlook to $900 million-$910 million from $910 million-$940 million as the consumer spending environment is weak.

Brokerage Dougherty & Co downgraded the stock to “neutral” from “buy” following the forecast cut.

** AMERICA MOVIL SAB DE CV, $21.53, up 3 pct (1035 ET)

Latin America’s biggest phone company on Thursday reported better-than-expected second-quarter core profit and revenue as more customers made mobile calls in Mexico and South America.

** BUILDERS FIRSTSOURCE INC $6.50, up 3.4 pct (1034 ET)

The supplier and manufacturer of structural and related building products for houses reported better-than-expected second-quarter results due to an increase in housing starts.

The Dallas-based company said single-family housing starts in the South rose 14.5 percent from a year earlier, and single-family units under construction increased 27.4 percent.

** NEWMONT MINING CORP, $29.57, down 1.2 pct (1337 ET)

The top U.S. gold miner posted a $2 billion second-quarter loss after a sharp drop in bullion prices and an impairment charge related to two Australian mines.

** FLEXTRONICS INTERNATIONAL LTD, $8.35, up 3 pct (0938 ET)

The company forecast current-quarter revenue largely above Wall Street estimates as the contract electronics manufacturer gets set to benefit from the launch of customer Google Inc’s new smartphone.

** IPC THE HOSPITALIST CO INC, $50.00, down 4 pct (1334 ET)

The physician management group’s quarterly profit narrowly missed expectations due to higher operating costs.

The company, which supplies physicians and nurses to hospitals, posted a profit of 53 cents per share excluding items. Analysts had expected 54 cents per share, according to Thomson Reuters I/B/E/S.

Brokerage Deutsche Bank downgraded the stock to “hold” from “buy”.

** PEARSON PLC, $20.43, up 5 pct (1358 ET)

The British publisher put its Mergermarket news service on the block while insisting that it intends to hang on to the Financial Times newspaper. (Compiled by Rohit T.K. in Bangalore; Editing by Maju Samuel)

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