Stocks in Motion: Regis

The hair services company lowers its second-quarter outlook.
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Updated from 11:33 a.m. EST

Shares of

Education Lending Group

(EDLG)

were among the

Nasdaq's

winners Wednesday, rising 22.8% after the education finance company agreed to be acquired by

CIT Group

(CIT) - Get Report

for about $318 million.

Education Lending shareholders will receive $19.05 a share in cash, representing a premium of 24% over Tuesday's closing price of $15.42. The deal is expected to close during the first quarter of 2005. Shares of Education Lending traded up $3.52 to $18.94, while shares of CIT Group traded down $2.04 to $42.75.

Regis

(RGS) - Get Report

fell 9.1% after the company lowered its second-quarter earnings outlook. The hair services company now expects earnings of 56 cents to 60 cents a share, down from its previous guidance of 65 cents to 68 cents a share. Sales, meanwhile, are expected to be at the high end of the previously announced range of $525 million to $530 million, reflecting the company's acquisition of Hair Club for Men and Women.

Analysts surveyed by Thomson First Call had been expecting earnings of 67 cents a share on sales of $527.3 million. Looking ahead, Regis forecast third-quarter earnings of 53 cents to 57 cents a share on sales of $533 million to $588 million. Third-quarter earnings are expected to be hurt by 6 cents a share because there were two fewer operating days compared with a year ago. The impact on sales is expected to be about $9 million. Analysts had been expecting earnings of 66 cents a share on sales of $574.4 million. Shares traded down $4.10 to $41.10.

Shares of

Tarragon

(TARR)

rose 21.6% after the homebuilder reaffirmed its 2004 earnings guidance. The company expects a profit of $42 million to $46 million, or $2.40 to $2.60 a share. A year ago the company earned $31.2 million, or $1.80 a share. Looking ahead, Tarragon forecast 2005 earnings of $75 million to $80 million, or $3.85 to $4.10 a share. Total sales are expected to be between $475 million to $525 million. Shares traded up $3.90 to $22.

Total Logistics

(TLCX)

rose 9.4% after the company agreed to be acquired by

Supervalu

(SVU)

for about $233 million. The grocery chain will pay Total Logistics shareholders $28.50 a share in cash for each share they own. Supervalu will also assume about $68 million in debt. The deal represents a 10% premium over Total Logistics' closing price of $26 on Tuesday. The acquisition is expected to be slightly accretive to earnings in fiscal 2006. Shares of Total Logistics traded up $2.45 to $28.45, while Supervalu traded down 15 cents to $33.11.

Shares of

Armor Holdings

(AH)

rose 4.7% after the company said its contract with the U.S. military would be increased by $53.5 million. The modification of the contract calls for Armor Holdings to provide add-on-armor for various types of heavy trucks. The U.S. Army Tank-Automotive and Armaments Command awarded the new deal. The delivery of vehicle armoring will take place in 2005. Shares traded up $2.05 to $45.56.

NYSE

volume leaders included

Lucent

(LU)

, down 8 cents to $3.64;

Pfizer

(PFE) - Get Report

, down 18 cents to $26.27;

Advanced Micro Devices

(AMD) - Get Report

, down 46 cents to $19.75;

General Electric

(GE) - Get Report

, down 22 cents to $35.93;

Citigroup

(C) - Get Report

, up 60 cents to $48.46; and

Texas Instruments

(TXN) - Get Report

, down 71 cents to $22.89.

Nasdaq volume leaders included

Sirius Satellite Radio

(SIRI) - Get Report

, up 9 cents to $7.60;

StemCells

(STEM)

, down 36 cents to $5.61;

Intel

(INTC) - Get Report

, down 20 cents to $22.41;

Microsoft

(MSFT) - Get Report

, down 5 cents to $26.79;

Cisco

(CSCO) - Get Report

, down 1 cent to $18.55; and

Sun Microsystems

(SUNW) - Get Report

, up 6 cents to $4.69.