Stocks in Motion: Sovereign

The bank raises its earnings estimate.
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Shares of

CKE Restaurants

(CKR)

were among the

NYSE's

losers Tuesday, falling 7% after the restaurant operator posted first-quarter results that fell short of expectations.

The company earned $16 million, or 24 cents a share, on sales of $465.9 million. Analysts polled by Thomson First Call were expecting earnings of 29 cents a share on sales of $471.2 million. A year ago, the company earned $10.5 million, or 17 cents a share, on sales of $455.3 million. During the most recent period, same-store sales grew by 2.4% at the company's Carl's Jr. restaurants. A year ago, same-store sales grew 9.8%. The company's Hardee's restaurants notched a 0.1% decline during the quarter, down from 11.9% a year ago. CKE said that both brands were hurt by unfavorable beef prices. Shares were trading down $1 to $14.22.

Exide Technologies

(XIDE)

fell 9% after the battery maker said that its annual report would contain a "going concern" opinion. PricewaterhouseCoopers will include the going-concern qualification as part of its audit for the fiscal year ended March 31, 2005. "The company understands that this qualification will be expressed due to concern about its ability to meet the financial covenants for the 2006 fiscal year in its credit agreement, as amended," the company said. The going-concern qualification will result in a default under the company's credit agreement, Exide said. As a result, the company is working with its bank group to obtain a waiver. Shares were trading down 41 cents to $4.40.

Shares of

Sovereign Bancorp

(SOV)

rose 4% after the company said it would post second-quarter earnings that are above expectations. The company expects to post operating earnings of 49 cents to 50 cents a share, which excludes 3 cents a share related to amortization of intangibles. Analysts are expecting earnings of 45 cents a share. "We remain focused on our financial objectives and are not going to grow our balance sheet simply for the sake of growth," the company said. "Given the continued flatness of the yield curve, we believe it is prudent not to reach for low-margin businesses, especially those that carry a high level of interest rate risk and hence are willing to accept lower loan growth until the yield curve steepens." Shares were trading up 78 cents to $22.22.

Ceradyne

(CRDN)

rose 8% after the body-armor company said that it won a $75.5 million Army contract. Ceradyne said the $75.5 million lightweight ceramic body-armor contract represents the third delivery order received under the $461 million indefinite delivery/indefinite quantity contract announced in August 2004. So far, Ceradyne has received $179 million in orders under the contract, with about $282 million in unplaced options. Ceradyne expects to receive additional delivery orders later this year and throughout the remaining 25 months of the contract, it said. Shares were trading up $1.51 to $21.64.

Shares of

CBRL Group

(CBRL) - Get Report

fell 3% after the company said that its fourth-quarter earnings and sales would fall to the low end of its previously issued guidance. In May, the Cracker Barrel restaurants operator said that it would post earnings of 73 cents to 76 cents a share on sales growth of 9% to 11%. Analysts are expecting earnings of 75 cents a share on sales of $666.6 million, or sales growth of about 9.7%. Shares were trading down $1.15 to $40.15.

NYSE volume leaders included

Pfizer

(PFE) - Get Report

, down 26 cents to $27.82;

Lucent Technologies

(LU)

, up 3 cents to $2.99;

General Electric

(GE) - Get Report

, up 27 cents to $34.88;

Time Warner

(TWX)

, up 6 cents to $16.96;

Calpine

(CPN)

, up 6 cents to $3.55;

Exxon Mobil

(XOM) - Get Report

, up 13 cents to $59.43; and

Wyeth

(WYE)

, up $1.63 to $44.63.

Nasdaq

volume leaders included

Sirius Satellite Radio

(SIRI) - Get Report

, up 29 cents to $6.28;

SeeBeyond Technology

(SBYN)

, up 97 cents to $4.25;

Intel

(INTC) - Get Report

, up 28 cents to $26.14;

Microsoft

(MSFT) - Get Report

, down 1 cent to $25.04;

Cisco Systems

(CSCO) - Get Report

, up 14 cents to $19.17;

Oracle

(ORCL) - Get Report

, up 13 cents to $12.67; and

Google

(GOOG) - Get Report

, up 85 cents to $304.95.