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Tuesday's Winners & Losers: McDermott

The energy services company's shares ascend on good earnings.

Updated from 10:53 a.m. EDT

McDermott International

(MDR) - Get McDermott International, Inc. Report

was among the

NYSE's

winners Tuesday, as shares rose 11.1% after the energy services company posted better-than-expected first-quarter results.

The company earned $158.1 million, or $1.38 a share, on revenue of $1.36 billion. Analysts polled by Thomson Financial had expected earnings of 75 cents a share on revenue of $1.27 billion. During the year-earlier period, the company earned $55.3 million, or 49 cents a share, on revenue of $644.9 million. "At McDermott, we generally avoid over-emphasizing any given quarter as our results, and the industry in general, are inherently lumpy," the company said. "However, the first quarter was truly outstanding for us and is a terrific start to 2007." Shares closed up $6.52 to $65.55.

Despite posting better-than-expected first-quarter results and issuing better-than-expected second-quarter earnings guidance,

Heelys

(HLYS)

slumped 12.2% after the company, which makes wheeled sneakers, cautioned that customers are placing back-to-school orders for earlier delivery in 2007 than they did in 2006. Separately, the company also said that it plans to offer 8 million shares in a secondary offering.

During the first quarter, the company earned $8.5 million, or 30 cents a share, on revenue of $49.4 million. Analysts had expected earnings of 20 cents a share on revenue of $36.1 million. Looking ahead, Heelys sees second-quarter earnings of 37 cents to 40 cents a share on revenue of $65 million to $70 million. Analysts project earnings of 33 cents a share on revenue of $68.3 million.

As for the company's secondary offering, shares are being offered by existing shareholders. The company will not receive any of the proceeds. Bear Stearns, Wachovia Securities, and JPMorgan are leading the underwriting syndicate. Shares closed down $4.42 to $31.92.

Shares of

Advance Auto Parts

(AAP) - Get Advance Auto Parts, Inc. Report

rose 3.3% after the auto parts retailer announced the resignation of its chief executive and reiterated first-quarter guidance. The company said that Michael Coppola is resigning to pursue other opportunities. John Brouillard, meanwhile, will serve as CEO on an interim basis until a replacement is found. The company also said that it continues to expect first-quarter earnings of 68 cents to 72 cents a share on same-store sales growth that will be in the low single-digit range. Analysts project earnings of 71 cents a share. Shares closed up $1.34 to $41.75.

Florida East Coast Industries

(FLA)

climbed 14.5% after the commercial real estate company agreed to be acquired by Fortress Investment Group for $3.5 billion, or $84 a share. The price, which consists of $62.50 a share in cash and a special dividend of $21.50 a share in cash, represents a premium of 13% over Florida East Coast's closing price of $74.13 on Monday. The deal is expected to close during the third quarter. Shares closed up $10.78 to $84.91.

Shares of

VeraSun Energy

(VSE)

slid 14.7% after the producer of ethanol posted disappointing first-quarter results. The company reported a loss of $312,000, or less than a penny a share, on revenue of $144.5 million. Analysts expected earnings of 11 cents a share on revenue of $147.4 million. VeraSun said that results were hurt by higher corn costs. During the year-earlier quarter, the company earned $2.7 million, or 4 cents a share, on revenue of $110.7 million. Shares closed down $2.89 to $16.72.

NYSE volume leaders included

AK Steel

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, up $2.96 to $35.02;

Hewlett-Packard

(HPQ) - Get HP Inc. (HPQ) Report

, up $1.21 to $45.01;

Schering Plough

(SGP)

, down 53 cents to $32.52;

Ford

(F) - Get Ford Motor Company Report

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, up 21 cents to $8.37;

Motorola

(MOT)

, down 38 cents to $17.70;

Alcoa

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, up 87 cents to $39.50;

Advanced Micro Devices

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, down 10 cents to $13.18; and

Pfizer

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, down 3 cents to $27.35.

Nasdaq

volume leaders included

Intel

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, up 19 cents to $22.15;

Sun Microsystems

(SUNW) - Get Sunworks, Inc. Report

, unchanged at $5.22;

Cisco Systems

(CSCO) - Get Cisco Systems, Inc. Report

, up 55 cents to $28.36;

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

, up 4 cents to $30.75;

Apple

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, up $1.14 to $105.06;

Dendreon

(DNDN)

, down 18 cents to $17.74; and

Applied Materials

(AMAT) - Get Applied Materials, Inc. Report

, down 35 cents to $19.44.