Tuesday's Winners & Losers: Maverick Tube

Shares soar after the company agrees to be acquired by Tenaris for $2.4 billion.

Author:: Mark Martinez
Publish date:: Jun 13, 2006 11:21 AM EDT

Shares of

Tuesday Morning

were among the

Nasdaq's

losers Tuesday, tumbling 11% after the home-furnishings retailer warned that second-quarter results will be lower than Wall Street expected.

The company sees earnings of 7 cents to 10 cents a share, including a penny a share in stock-based compensation costs. The company predicts sales of $210 million to $214 million, with an 8% to 9.5% drop in same-store sales. Analysts polled by Thomson First Call project earnings of 21 cents a share and sales of $229.4 million. A year earlier, Tuesday Morning posted earnings of 25 cents a share and sales of $218.8 million. Shares were trading down $1.74 to $14.61.

Maverick Tube

( MVK) soared 38% after the maker of tubular products agreed to be acquired by

Tenaris

(TS) - Get Report

for $2.4 billion, or $65 a share. The all-cash offer represents a 42% premium over Monday's closing price of $45.66. Including the assumption of debt, the deal values Maverick at about $3.19 billion. "With Maverick, we will gain full access to the energy sector in the United States and Canada," Tenaris said in a statement. The combined company will have revenue of about $9 billion, with the U.S. and Canada representing about 30% of revenue. Shares of Maverick were trading up $17.31 to $62.97, while shares of Tenaris rose $2.27, or 7%, to $33.77.

Shares of

Best Buy

(BBY) - Get Report

rose 4% after the consumer-electronics retailer reported better-than-expected fiscal first-quarter results. For the period ended May 27, the company earned $234 million, or 47 cents a share, on revenue of $6.96 billion. Analysts expected earnings of 36 cents a share on revenue of $6.84 billion. A year earlier, the company earned $170 million, or 34 cents a share, on revenue of $6.12 billion.

Best Buy continues to forecast full-year earnings of $2.65 to $2.80 a share. Analysts project earnings of $2.72 a share. "We are off to a terrific start -- laying the foundation for strong earnings growth for this year and beyond," the company said. Shares were trading up $2.19 to $51.22. Shares of rival

Circuit City

(CC) - Get Report

rose 91 cents, or 3.4%, to $28.34.

Zale

(ZLC)

fell 1% Tuesday, a day after the jewelry retailer said it terminated merger discussions with

Signet Group

. On Monday, shares of Zale surged in early action after the company said it had conducted preliminary discussions with Signet. Late Monday, however, Zale issued a press release saying "it concluded that its shareholders are best served by continuing as an independent company." Shares of Zale recently were down 20 cents to $24.50.

Shares of

Horizon Lines

( HRZ) rose 4% after the container-shipping and integrated-logistics company priced a secondary stock offering at $14 a share. Existing shareholders agreed to sell nearly 5.8 million shares in the offering and granted underwriters an option to buy an additional 862,500 shares to cover over-allotments. The underwriting syndicate was led by Deutsche Bank, JPMorgan Securities and Goldman Sachs. Horizon Lines shares were up 56 cents to $14.73.

NYSE

volume leaders included

Lucent Technologies

( LU), down 8 cents to $2.33;

Jabil Circuit

(JBL) - Get Report

, down $8.76 to $23.66;

General Electric

(GE) - Get Report

, up 11 cents to $33.98;

Pfizer

(PFE) - Get Report