Stocks in Motion: Radio Shack

Shares of Animas (PUMP) were among the Nasdaq's big winners Friday, jumping 32% after Johnson & Johnson (JNJ) agreed to buy the company in a deal valued at around $518 million.

J&J will pay $24.50 for each Animas share, a 35% premium to Thursday's closing price of $18.20. The stock has traded between $13.97 and $22.50 a share in the last 52 weeks. Animas, a maker of insulin-infusion pumps, will likely operate as a stand-alone business under J&J's LifeScan unit. LifeScan makes blood-glucose monitoring systems. Animas shares recently were trading up $5.85 to $24.05, while shares of J&J were adding $1.06 to $61.22.

Shares of Radio Shack (RSH) fell after the electronics retailer warned that is unlikely to match its previous earnings guidance in 2005. Radio Shack cited weak sales of wireless equipment, which it said has also hurt sales of batteries and accessories. The company's old guidance for 2005 was for earnings of $2.14 to $2.24 a share. Although those numbers were well above the Wall Street consensus of $1.80 a share, the shares still took a hit. They were recently down $1.22, or 5.4%, to $22.50.

Scholastic (SCHL) slid after posting a 20-cent earnings miss in its second quarter. The Harry Potter publisher said net income fell 8% from a year ago to $66.9 million, or $1.59 a share, on a 2% rise in sales to $696.7 million. Analysts polled by Thomson First Call were expecting $1.79 a share on sales of $702.9 million. Scholastic blamed the hurricanes, weak overseas results and lackluster results in its children's book publishing division. For the current fiscal year, the company expects earnings to be at the low end of its $2.30 to $2.50-a-share range; analysts were forecasting $2.42 a share. The stock lost $2.69, or 8.1%, to $30.41.

ITT Industries (ITT) shares rose 3% after the industrial technology concern said it is "solidly on track" to meet its earnings forecast, and also announced the planned divestiture of its switches business and a stock split. ITT expects 2005 earnings from continuing operations of $5.17 to $5.22 a share, in line with its prior projection and with analysts' forecast of $5.21 a share. The forecast excludes a charge of $200 million to $275 million on the impairment of its switches business, which includes the design and production of keypads, interface controls and switches. The company said it decided to begin the process of divesting the business after a strategic review within its electronic components segment. Including the charge, ITT expects 2005 earnings under generally accepted accounting principles of $3.39 to $4.22 a share.

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