Updated from 1:35 p.m. EDTShares of Brink's ( BCO) were among the NYSE's losers Wednesday after the company posted weaker-than-expected second-quarter earnings and warned that an investigation may force it to restate those same second-quarter earnings results. The security services company earned 25 cents a share on sales of $1.1 billion. Analysts polled by Thomson First Call had expected it to earn 34 cents a share on sales of $1.1 billion. Brink's said it recently discovered that one of its overseas business units has not paid about $3 million in foreign duties and value-added taxes during the normal course of its operations. It has been advised by counsel that it could face civil and criminal penalties as a result of its nonpayment of those taxes and duties. While the company has not been notified by any governmental authorities, Brink's said that it could face up to $85 million in penalties and fees if the company were ever assessed against the overseas business unit. Brink's has begun to implement changes that will prevent this kind of event from happening again in the future, it said. Shares of Brink's traded down $4.73, or 14.8%, to $27.32. Homestore ( HOMS) fell after it reported weaker-than-expected second-quarter financial results. Excluding items, the online real estate company posted a loss of 2 cents a share on sales of $56.8 million. Analysts were looking for a loss of a penny on sales of $58.1 million. Shares of Homestore traded down 50 cents, or 14.7%, to $2.90. Shares of ValueClick ( VCLK) fell after the company reported mixed second-quarter financial results and warned that third-quarter results would fall short of expectations. The Internet marketing company posted a profit of 7 cents a share during the second quarter on sales of $34.6 million. Analysts had expected it to earn 6 cents a share on sales of $36.4 million. Looking ahead, it expects third-quarter earnings of 6 cents a share on sales of $36 million to $37 million. Analysts were expecting 7 cents a share on sales of $37.2 million. Shares of ValueClick traded down $2.63, or 26.9%, to $7.16.
Encore Capital Group ( ECPG) rose after it posted better-than-expected second-quarter results. The accounts receivable management firm posted earnings of 24 cents a share on sales of $43.6 million. Analysts had expected it to earn 21 cents a share on sales of $39.8 million. A year ago, it earned 17 cents a share on sales of $28.4 million. Shares of Encore Capital Group traded up 78 cents, or 5.4%, to $15.30. Shares of William Lyon Homes ( WLS) rose after the company posted strong second-quarter results and said full-year earnings would top estimates. The homebuilder posted second-quarter earnings of $3.14 a share on sales of $384.5 million. A year ago, it earned $1.38 a share on sales of $158.7 million. Looking ahead, it said that as a result of its strong performance during the first half of the year, it now expects to post full-year earnings of $15.50 to $15.75 a share. The lone estimate calls for the company to post a full-year profit of $11.46 a share. Shares of William Lyon Homes traded up $4.86, or 6.2%, to $82.86. NYSE volume leaders included Lucent ( LU), up 6 cents to $3.06; Schering-Plough ( SGP), down $1.14 to $17.96; Nortel Networks ( NT), down 4 cents to $3.70; AT&T Wireless ( AWE), down 10 cents to $14.33; and Gap ( GPS), down 86 cents to $21.38. Nasdaq volume leaders included IAC/InterActiveCorp ( IACI), down $4.23 to $22.80; Ciena ( CIEN), down 68 cents to $2.08; Intel ( INTC), down 16 cents to $23.97; Oracle ( ORCL), up 28 cents to $10.84; Microsoft ( MSFT), down 1 cent to $28.06; and Cisco ( CSCO), up 38 cents to $21.12.