Stocks in Motion: Fred's

Shares of Fred's (FRED Quote) were among Nasdaq's best-performing stocks Tuesday, rising 9% after the general merchandise retailer posted third-quarter earnings that topped Wall Street's expectation.

For the quarter ended Oct. 29, Fred's earned $6.3 million, or 16 cents a share, down from $7.4 million, or 19 cents a share, a year earlier. Excluding an accounting adjustment in the most recent period, Fred's earned $7.7 million, or 19 cents a share. On this basis, earnings beat Thomson First Call's mean analyst estimate of 18 cents, and were in line with Fred's guidance of 19 cents to 22 cents. The company's sales grew to $376.8 million from $349.1 million a year earlier, while same-store sales declined 1%. Looking ahead, Fred's said it expects market and competitive conditions will continue to be "aggressive," but it anticipates meeting its plan for the fourth quarter and 2006. Fred's shares recently were up $1.35 to $16.43.

Sizeler Property (SIZ Quote) rose nearly 7% after the real estate investment trust announced the resignation of its chief executive and said it is exploring strategic options for its business. The company said Sidney Lassen has retired as chairman and chief executive to pursue personal interests, but will remain a member of Sizeler's board. The company named Mark Tanz nonexecutive chairman.

Sizeler said its strategic alternatives could include a possible merger, sale or liquidation. The company will continue in its plans to sell its regional malls while the process occurs. First Union Real Estate (FUR Quote), which owns 8.3% of Sizeler's shares, released a statement saying it "strongly supports" the company's moves. First Union's CEO sits on Sizeler's board. Sizeler shares traded up 77 cents to $12.40.

MTS Systems (MTSC Quote) tumbled 19% after the company's earnings and guidance failed to impress investors. The supplier of test systems and industrial position sensors said its fiscal fourth-quarter earnings rose to $10.5 million, or 51 cents a share, from $8.2 million, or 40 cents a share, a year earlier. The results included numerous one-time items that totaled into a gain of 13 cents a share. Analysts expected earnings, before items, of 41 cents a share. MTS reported revenue of $90.5 million, down from $96 million a year earlier. The company said the revenue was lower than expected, reflecting reduced revenue in its test segment.