Tuesday's Winners & Losers: American Commercial
Updated from 11:29 a.m. EDT
American Commercial Lines (ACLI) was among the Nasdaq's losers Tuesday, falling 9.1% after the barge operator cut its 2007 earnings guidance.
The company now sees earnings of $1.45 to $1.65 a share, down from earlier guidance of $1.75 to $1.95 a share. Analysts polled by Thomson Financial project earnings of $1.84 a share. "The lowered guidance is driven primarily by the further weakness in the spot grain markets over first-quarter levels and lower than planned productivity levels in the manufacturing segment during the second quarter," the company said.
The company also announced a $200 million stock buyback program. "We believe the purchase of ACL stock is an attractive investment and, at a $200 million level, maintains a well-capitalized balance sheet that will continue to allow us to fund the future growth of the company," American Commercial Lines said. Shares closed down $2.63 to $26.27.Ecolab (ECL) rose 1.6% after Credit Suisse lifted its rating on the stock to outperform from neutral. The broker said that shares offer a compelling risk-reward equation for investors, especially after the company's recent pullback. Credit Suisse also lifted its target price to $50 from $49. Shares were up 66 cents $42.75. Shares of Retail Ventures (RVI) slid 11% after the retailer posted first-quarter results that did not please investors. The company posted an adjusted loss of $9.8 million, or 21 cents a share, on revenue of $754.1 million. The single-analyst forecast called for a loss of 14 cents a share on revenue of $790.7 million. During the year-earlier quarter, the company posted an adjusted loss of $139,000, or less than a penny a share, on revenue of $721.5 million. Shares were down $2.03 to $16.51. Dean Foods (DF) fell 4.3% after the dairy producer cut its second-quarter and full-year earnings guidance. The company now sees second-quarter earnings of 30 cents to 31 cents a share. For the full year, the company sees earnings of $1.52 to $1.58 a share. Analysts project second-quarter earnings of 37 cents a share and full-year earnings of $1.69 a share. Dean Foods said that it was hurt by rapidly increasing dairy costs and an oversupply of organic milk. Shares closed down $1.39 to $31.07. Shares of Horizon Offshore (HOFF) jumped 10% after the provider of construction services for the offshore oil and gas industry agreed to be acquired by Cal Dive International (DVR) for about $650 million, or $19.25 a share. The price represents a 14% premium to Horizon's closing price of $16.95 on Monday. The deal includes a "go shop" provision, which allows Horizon to seek out a superior bid until July 27. After that, Horizon would have to pay a breakup fee of about $9.4 million if it walks away from the Cal Dive offer. Shares of Horizon closed up $1.69 to $18.64 while shares of Cal Dive closed down 48 cents, or 3%, to $15.52.
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