Shares of YRC Worldwide ( YRCW) sank 10% in late trading Wednesday after the transportation-services company lowered its first-quarter outlook. The company, formerly known as Yellow Roadway, said it now expects earnings of 65 cents to 70 cents a share, down from its earlier forecast of $1 to $1.05. YRC said volumes are below expectations amid competitive pressure and inventory adjustments by large retail customers. The company also said it has had cost overruns in its Yellow Transportation division. Shares fell $4.73 to $40.56 after hours. Meanwhile, shares of fellow transportation company J.B. Hunt ( JBHT) fell 4% in sympathy, while Swift Transportation ( SWFT) shares shed 3%. Xyratex ( XRTX) shares surged 20% after the data-storage company posted better-than-expected first-quarter results and offered a second-quarter guidance well above forecasts. For the quarter ended Feb. 28, the company's earnings fell to $6.4 million, or 22 cents a share, from $9.4 million, or 33 cents a share, a year earlier. Excluding certain items, earnings from continuing operations were $8.3 million, or 28 cents a shares. Revenue rose to $190.5 million from $142.5 million. Analysts polled by Thomson First Call had forecast earnings of 25 cents a share, before items, and revenue of $174 million. The company's own guidance had called for earnings of 18 cents to 25 cents a share, with revenue of $167 million to $177 million. For the second quarter, Xyratex projects earnings of 83 cents to 93 cents a share, before charges. Analysts target earnings of 56 cents a share. The company forecasts revenue of $268 million to $283 million, easily exceeding Wall Street's target of $218 million. Shares advanced $5.19 to $31.30 after hours. Shares of Electro Scientific Industries ( ESIO) slipped after the maker of electronics manufacturing equipment posted lower-than-expected sales and gave a tepid top-line guidance. For the third quarter ended Feb. 25, ESI earned $10.4 million, or 35 cents a share, up from $2 million, or 7 cents a share, a year ago. The latest-quarter results included a $5.3 million tax benefit. Sales, meanwhile, rose 14% to $55.9 million. Analysts were looking for the company to post income of 18 cents a share and sales of $56.8 million. For the fourth quarter, the company forecast revenue of $50 million to $60 million, short of Wall Street's target of $61 million. ESI also said its fourth-quarter gross margin will come in slightly lower than the third quarter due to a change in product mix. Shares fell 68 cents, or 2.8%, to $23.70 late Wednesday.
Herman Miller ( MLHR) shares dipped in late trading after the office-furniture maker gave fourth-quarter guidance slightly off Wall Street's expectations. The company posted third-quarter earnings of $22.4 million, or 33 cents a share, up from $16.8 million, or 24 cents a share, a year ago. Revenue for the quarter ended March 4 rose to $424 million from $382.4 million. Analysts were looking for a profit of 33 cents a share on revenue of $422.6 million. Herman Miller said it expects fourth-quarter sales of $430 million to $450 million, with earnings in a range of 34 cents to 38 cents a share. Wall Street is looking for earnings of 38 cents a share on revenue of $445.1 million. Shares slipped 38 cents, or 1.2%, to $31.18 after hours. Terayon Communication Systems ( TERNE) gained after broadband-equipment company said it will pay $15 million to settle a shareholder class-action lawsuit. The company said it was more cost-effective to settle the suit than to continue the litigation, which alleged the company and certain of its officers issued false and misleading statements. Terayon said it expects to pay about $2.3 million of the amount, with its insurance carriers paying the remaining portion of the settlement. Separately, the company said it had paid in full its $65.6 million of 5% convertible notes due in 2007. Terayon was forced to repay the bond after the company defaulted by missing the filing deadline for its third-quarter earnings report. Shares climbed 25 cents, or 13%, to $2.13.