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Monday's Winners & Losers: Ceradyne

Mark Martinez

Shares of EZCorp(EZPW) were among the Nasdaq's winners Monday, jumping 13% after the pawn-loan company increased its third-quarter earnings estimate.

For the period ended June 30, the company expects to report earnings of 35 cents to 37 cents a share, up from an earlier view of 20 cents to 23 cents. Analysts polled by Thomson First Call project earnings of 23 cents a share. For the full fiscal year, EZCorp raised its earnings forecast to $1.80 to $1.85 a share from an earlier projection of $1.60 to $1.65 a share. Analysts anticipate fiscal 2006 earnings of $1.65 a share.

EZCorp attributed the bolstered outlook to higher gold values and lower-than-expected expenses from new store openings. The company, which opened 25 stores during the third quarter, said that it still expects to open more than 100 stores during the fiscal year that ends Sept. 30, which will push much of the anticipated new-store earnings drag into its fourth quarter. Shares were trading up $4.97 to $42.66.

Ceradyne(CRDN) rose 7% after the body-armor maker said received a five-year government contract that could be worth as much as $611.7 million. The indefinite-delivery/indefinite-quantity contract calls for the company to deliver ceramic body armor to the Army, with the initial $59.8 million order being delivered from July to November. "Under an ID/IQ government-type contract, the government is obligated to purchase only certain minimum quantities," the company said. "Each delivery order, such as this initial delivery order for $59.8 million, is issued as a release against a maximum amount, which for this ID/IQ contract is $611.7 million." Shares were up $3.47 to $52.96.

Shares of Deluxe(DLX) continued to slide Monday. Late Friday afternoon, shares tumbled after the check company slashed its 2006 earnings forecast. The company now sees earnings of $1.37 to $1.47 a share, down from an earlier view of $2.70 to $2.80 a share. Analysts had been expecting earnings of $2.69 a share. The company now expects a second-quarter loss of 9 cents to 11 cents a share, compared with an earlier forecast for a profit of 52 cents to 56 cents a share. Analysts project earnings of 54 cents a share.

Deluxe said the lower guidance reflects a pretax impairment charge of $45 million, or 56 cents a share, related to the abandonment of a software project. The company also blamed performance shortfalls in each segment and moves to improve its cost structure. "We are extremely disappointed in how the second quarter is coming in," the company said. Shares, which fell 18% Friday, recently were down another $2.24, or 13%, to $15.38.

Michaels Stores(MIK) rose 2% after the arts-and-crafts retailer agreed to be acquired by private equity firms Bain Capital and the Blackstone Group for $44 a share, or more than $6 billion. The price reflects a 7% premium to Friday's closing price of $41.24 a share, and a 30% premium to its March 17 close, the last trading day before the company said it was seeking strategic alternatives. Bain and Blackstone will own equal stakes in the retailer after the deal's close, which is expected to occur by the end of the year. Michaels shares were trading up 76 cents to $42.

Shares of Wal-Mart(WMT) fell 2% after the retailer said same-stores sales for June came in 1.2%, the low end of its previous guidance. Previously, the company projected growth of 1% to 3%. Shares were trading down 89 cents to $47.28.

NYSE volume leaders included Lucent Technologies(LU), up 2 cents to $2.44; Ford(F), down 24 cents to $6.69; General Motors(GM), down 37 cents to $29.42; Pfizer(PFE), unchanged at $23.47; Nortel Networks(NT), up 12 cents to $2.36; EMC(EMC), down 15 cents to $10.82; and General Electric(GE), up 22 cents to $33.18.

Nasdaq volume leaders included Intel(INTC), up 25 cents to $19.25; Microsoft(MSFT), up 31 cents to $23.61; Cisco Systems(CSCO), up 35 cents to $19.88; Millicom(MICC), down $12.57 to $32.86; and JDSU(JDSU), down 4 cents to $2.49.