Stocks in Motion: SCS Transport
Updated from 11:42 a.m. EDT
Shares of SCS Transportation (SCST) were among the Nasdaq's losers Monday after the company warned that third-quarter earnings would not meet Wall Street's expectations.
The transportation company now expects third-quarter earnings of 41 cents to 47 cents a share vs. previous guidance of 51 cents to 57 cents a share. Analysts polled by Thomson First Call were expecting earnings of 55 cents a share. SCS cited lower-than-anticipated revenue growth -- caused by slower tonnage growth and declines in weight per shipment -- and higher operating expenses. Shares of SCS traded down $6.70, or 27.4%, to $17.80.
Robert Mondavi (MOND) rose after the California company said it would eliminate its class B shares as part of a reincorporation and approved a $30 million repurchase plan. Eliminating the class B shares would effectively reduce the controlling voting rights that are held by the Mondavi family. Their supervoting rights would be exchanged for 1.165 shares of the company, which is being reincorporated in Delaware. If the plan were approved, class B shareholders' financial interest would increase to 39.5% from 35.9%. However, their voting power would be reduced to 39.5% from 84.9%. The winemaker's $30 million repurchase plan would become effective after the elimination of its class B shares. Shares of Robert Mondavi traded up $3.51, or 9.4%, to $40.69.Shares of Hastings Entertainment (HAST) fell after the company posted second-quarter earnings that were weaker than expected. The retailer earned 4 cents a share during the second quarter on sales of $122.4 million. Analysts were expecting Hastings to earn 8 cents a share. Hastings also reiterated its full-year earnings outlook of 50 cents to 53 cents a share. Wall Street, however, is expecting full-year earnings of 55 cents a share. Shares of Hastings Entertainment traded down 78 cents, or 10%, to $7.02. Arch Coal (ACI) rose after it completed its $364 million acquisition of Triton Coal. The Federal Trade Commission had previously attempted to block the merger. The FTC made a last-ditch effort late last week to get an emergency injunction to block the transaction, but a U.S. appeals court denied its request. In addition to the merger news, Arch also reaffirmed earnings guidance of 15 cents to 25 cents a share during the third quarter. Analysts are expecting third-quarter earnings of 21 cents a share. Shares of Arch Coal traded up 37 cents, or 1.2%, to $32.21.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV