Wednesday's Small-Cap Winners & Losers

Rackable Systems (RACK) plummeted more than 33% after the computer-server maker predicted earnings between $4.8 million and $5.3 million, or 17 cents to 18 cents a share, widely missing the 27-cents consensus according to Thomson Financial.

Last year the California-based company earned $7.3 million, or 32 cents a share. Revenue should range between $105.5 million and $106.8 million -- up from $83.1 million in 2005 and covering the $106.1 million target. But shares were falling $10.83, or 33.4%, to $21.59.

Bridgford Foods (BRID) shares catapulted 25% after the Anaheim, Calif.-based distributor swung to a profit for both the quarter and year ended Nov. 3. Fiscal fourth-quarter earnings totaled $1.1 million, or 11 cents a share, compared with a loss of $340,000, or 3 cents a share, a year ago, and sales edged up 3.2% to $43.2 million. Full-year profits came to $1.2 million, or 13 cents a share, up from a $943,000 loss, or 9 cents a share, in 2005. Shares were gaining $1.56 to $7.80.

Sterling Construction (STRL) jumped after two analysts -- Ferris Baker Watts and Morgan Joseph -- upgraded the stock to a buy. On Tuesday, the Houston-based company predicted 2007 income of between $1.13 and $1.26 a share, at least 2 cents below two analysts' predictions. Its sales range between $285 million and $310 million, however, was in line with the consensus. Shares were up $2.27, or 11.8%, to $21.50.