Tuesday's Late Winners & Losers
Stocks trended downward after the bell Tuesday, and Chevron (CVX) was among the decliners.
The oil and gas company lost ground after predicting that its third-quarter bottom line will come in "significantly below" the $5.4 billion profit it recorded in the second quarter. The San Ramon, Calif., company blames some of this on one-time items, as well as a "sharp decline in refined-product margins for the downstream business." Shares were down $1.85, or 2%, to $90.95.
Also slipping on soft guidance was International Paper (IP), which said its third-quarter income won't meet the 63-cent per-share analyst consensus, according to Thomson Financial. The Memphis, Tenn.-based paper and packaging company did reaffirm, however, that it expects earnings per share to rise sequentially from last quarter's 52 cents. Shares were off 2.7% to $36.06.
Sallie Mae (SLM) retreated as well, on word the J.C. Flowers-led group's revised takeout bid for the student lender had expired. In announcing this, the buyer group called Sallie's just-announced retaliatory lawsuit regarding the amended offer "meritless."The group, which also includes Bank of America (BAC) and JPMorgan Chase (JPM), argued that the College Cost Reduction and Access Act, which will cut education-lending subsidies and was signed into law last month, is a "material adverse effect" as defined under the merger agreement. The group said that Sallie's claim to the contrary is a "misreading of the contract." Sallie shares were flat at $48.50 in recent extended trading. BofA added a penny to $52.58, and JPMorgan was flat at $47.57. Aluminum maker Alcoa (AA), meanwhile, reported a 3.2% rise in third-quarter continuing-operations income to 64 cents a share, or $558 million. Analysts were looking for 65 cents a share, excluding special items. In addition, the Pittsburgh-based company said it will now buy back as much as 25% of its outstanding shares, up from the prior 10% authorization. Shares were recently up 8 cents to $39.80. Elsewhere, Canada-based Angiotech Pharmaceuticals (ANPI) jumped 9.5% on positive results from a pivotal trial on its anti-infective 5-Fluorouacil-coated Central Venous Catheter. The study achieved the primary efficacy endpoint and demonstrated an "excellent safety profile," the company said. Shares gained 63 cents to $7.30 in light trading.
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