Stocks in Motion: Tyson Foods

Investors find the meat processor's earnings and outlook unappetizing.
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Shares of

Georgia-Pacific

(GP)

were among the

NYSE's

winners Monday, soaring 37% after the paper products company agreed to be acquired by privately held Koch Industries for $13.2 billion in cash.

The deal values Georgia-Pacific at $48 a share, representing nearly a more than 38% premium over Friday's closing price of $34.65. The company will be operated as a privately held subsidiary of Koch and retain its Georgia-Pacific name. Koch, meanwhile, will become the nation's largest private company in terms of revenue. Georgia-Pacific shares recently were trading up $12.87 to $47.52.

Tyson Foods

(TSN) - Get Report

fell 9% after the meat and chicken processor posted lower-than-expected fourth-quarter earnings and issued a weak profit forecast for fiscal 2006. Tyson earned $98 million, or 28 cents a share, for the fourth quarter ended Oct. 1. Excluding one-time gains and losses, the company would have earned 25 cents a share, missing Thomson First Call's mean analyst estimate of 30 cents. Tyson's sales fell to $6.5 billion, compared with Wall Street's estimate of $7.03 billion. In last year's fourth quarter, the company earned $66 million, or 19 cents a share, on sales of $7.15 billion.

Tyson sees fiscal 2006 earnings of 95 cents to $1.25 a share, below analysts' expectations of $1.33 a share. "We are encouraged by recent developments in export market access, but fiscal 2006 will present only gradual recovery in beef as those markets begin to open and cattle supplies improve," the company said. Shares were down $1.60 to $16.90.

Shares of

Home Solutions of America

(HOM)

climbed 11% after the company posted a big jump in third-quarter earnings and raised its full-year forecast. The home remodeling company earned $2.4 million, or 8 cents a share, on sales of $20.4 million. Results included a 1-cent charge related to the conversion of preferred stock. A year earlier, the company earned $685,000, or 3 cents a share, on sales of $7.9 million.

Home Solutions now sees 2005 earnings of 25 cents to 27 cents a share on sales of $73 million to $76 million. Previously, the company expected to earn 23 cents to 25 cents a share and sales of $70 million to $75 million. For 2006, the company sees earnings of 42 cents to 46 cents a share, with sales of $130 million to $140 million. Shares were trading up 63 cents to $6.39.

Knight-Ridder

(KRI)

rose 2% after the newspaper giant said it is exploring strategic alternatives, which could include the possible sale of the company. The company has hired Goldman Sachs as its financial adviser. The news comes almost two weeks after the Knight Ridder's largest shareholder, Private Capital Management, urged the company to put itself up for sale. Knight Ridder shares recently gained $1.36 to $63.86.

Shares of

Lowe's

(LOW) - Get Report

rose 4% after the home-improvement retailer posted third-quarter results that topped expectations. The company earned $649 million, or 81 cents a share, on sales of $10.6 billion. Analysts expected earnings of 77 cents a share and sales of $10.51 billion. In last year's third quarter, the company earned $516 million, or 65 cents a share, on sales of $9.1 billion.

Lowe's sees fourth-quarter earnings of 77 cents to 80 cents a share on sales growth of 22% from a year earlier. Analysts expect earnings of 79 cents a share on sales of $10.33 billion, or sales growth of almost 21%. Shares were trading up $2.53 to $64.50.

NYSE volume leaders included

Motorola

(MOT)

, down 62 cents to $22.94;

Pfizer

(PFE) - Get Report

, up 5 cents to $22.48;

Lucent Technologies

(LU)

, down 3 cents to $2.75;

Time Warner

(TWX)

, up 4 cents to $17.86;

Home Depot

(HD) - Get Report

, up 62 cents to $42.53; and

Wal-Mart

(WMT) - Get Report

, up 6 cents to $49.06.

Nasdaq

volume leaders included

Microsoft

(MSFT) - Get Report

, up 10 cents to $27.38;

Sirius Satellite Radio

(SIRI) - Get Report

, down 2 cents to $6.98;

Intel

(INTC) - Get Report

, up 19 cents $25.32;

Cisco Systems

(CSCO) - Get Report

, down 11 cents to $17.36;

Brocade Communications Systems

(BRCDE)

, up 60 cents to $4.10;

Capstone Turbine

(CPST) - Get Report

, up 15 cents to $3.28;

JDSU

(JDSU)

, down 3 cents to $2.26;

Sun Microsystems

(SUNW) - Get Report

, up 1 cent to $3.71; and

Oracle

(ORCL) - Get Report

, up 9 cents to $12.90.