Movers: Beazer Homes, Dillard's, Digital River, Build-A-Bear
Beazer Homes USA (BZH) falls after its Chief Accounting Officer Michael Rand was terminated due to violations of the company's ethics policy stemming from attempts to destroy documents in violation of the company's document retention policy.
Dillard's (DDS) rises on news that Barington Capital Group, L.P. (which owns 3.2% of outstg shares of DDS) is seeking a meeting with management to discuss measures that Barington believes will maximize shareholder value for benefit of co.'s stockholders.
Constellation Brands (STZ) posts $0.13, vs. $0.36 a year ago, first-quarter EPS (reported) on an 18% sales drop. It sees $1.16-$1.26 fiscal year 2008 EPS (reported). The company names Robert Sands CEO, effective July 26, 2007. S&P downgrades the stock to hold from buy.
General Motors (GM) agrees to sell its Allison Transmission commercial, military business to The Carlyle Group and Onex Corp for about $5.6 billion.
Build-A-Bear Workshop (BBW) rises after it announced it retained Lehman Brothers to assist in analysis and consideration of a broad range of potential strategic alternatives to enhance long-term shareholder value.
Bed Bath & Beyond (BBBY) posts $0.38, vs. $0.35 a year ago, first-quarter EPS on 1.6% same-store sales rise. It sees the overall retailing environment, especially sales of merchandise related to the home, as challenging. Morgan Keegan cuts estimates, maintains underperform.
Digital River (DRIV) sees preliminary second-quarter revenue of about $78 million, lower than its previous guidance of $85 million; it expects non-GAAP EPS of $0.38-$0.39, lower than prior guidance of $0.46.
Novellus Systems (NVLS) sees second-quarter bookings, shipments, revenues, and EPS at the low end of guidance ranges provided during its mid-quarter update. It anticipates weakening semiconductor equipment industry demand, and says it's taking preemptive actions.
LSI Corp. (LSI) sees $650-$670 million second-quarter revenue and breakeven-to-$0.03 non-GAAP loss due to lower-than-expected revenue. It plans to eliminate 900 jobs. S&P cuts target and keeps sell opinion on the stock. Wedbush downgrades to sell from hold.
Herman Miller (MLHR) posts $0.50, vs. $0.38 a year ago, fourth-quarter EPS on 9.3% higher sales. It sees $0.47-$0.53 first-quarter EPS on $480-$505 million in sales.
Meridian Gold (MDG) announces that Yamana Gold Inc. plans to offer to acquire 100% of outstanding shares of MDG. It says its board will consider the announcement, as well as any formal offer actually made.
JP Morgan reportedly upgrades US Airways Group (LCC) to overweight from from neutral, and Continental (CAL) to overweight from underweight.
Dominion Resources (D) sets a modified Dutch Auction self-tender for 55 million shares, or 16% of its outstanding shares. Holders will have the opportunity to tender shares at a price not less than $82 per share and not more than $92. S&P maintains buy.
Monsanto (MON) posts $1.03, vs. $0.60 a year ago, third-quarter EPS on 23% sales rise. It sees increased use of its corn seeds and traits globally, expects sixth consecutive year of branded corn market share gains in U.S. S&P reiterates hold.
American Superconductor (AMSC) says the Dept. of Energy is providing up to $21.7 million in funding to AMSC for two new AMSC high temperature superconductor (HTS) projects.
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