Bloomberg News

Adobe, CarMax, La-Z-Boy, Spartan Motors: U.S. Equity Movers

June 22, 2011

June 22 (Bloomberg) -- Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 4 p.m. New York time.

Adobe Systems Inc. (ADBE US) fell 6.3 percent to $30.01 for the biggest retreat in the Standard & Poor’s 500 Index. The largest maker of graphic-design software said profit for the third quarter may be as low as 50 cents a share, compared with the 54-cent average analyst projection, excluding certain items.

Aerovironment Inc. (AVAV US) had the second biggest gain in the Russell 2000 Index, jumping 21 percent to $34.51. The maker of low-flying drones for U.S. military forces said 2012 earnings will be at least $1.28 a share, higher than analysts’ average forecast for $1.23 a share, Bloomberg data show.

CarMax Inc. (KMX US) had the biggest gain in the S&P 500, climbing 7 percent to $32.66. The largest U.S. seller of used cars reported first-quarter revenue of $2.68 billion, beating the $2.53 billion estimated by analysts on average.

Ceva Inc. (CEVA US) advanced 6.9 percent, the most since April 13, to $29.86. The chip designer was rated “outperform” in new coverage by Oppenheimer & Co., which said the stock offers an “excellent growth story.”

FedEx Corp. (FDX US) rose 2.6 percent, the most since May 5, to $91.44. The second-largest U.S. package-shipping said fiscal fourth-quarter profit excluding some items rose to $1.75 a share from $1.33 a year earlier. Analysts surveyed by Bloomberg had estimated $1.72 on average.

FSI International Inc. (FSII US) fell the most in the Russell 2000 Index, tumbling 24 percent to $2.78. The maker of equipment for chip factories forecast fourth-quarter sales of $30 million at most, trailing the average analyst estimate of $32.3 million in a Bloomberg survey.

Jabil Circuit Inc. (JBL US) gained 3.2 percent to $19.45, the lowest price since June 14. The U.S. contract electronics manufacturer said it may buy back as much as $200 million of its shares. The company also posted third-quarter earnings and revenue that exceeded the average analyst estimate.

L-3 Communications Holdings Inc. (LLL US) jumped 4.7 percent, the most since Jan. 7, to $86.21. Activist investment firm Relational Investors LLC reported it has become the biggest shareholder of the defense contractor that makes surveillance cameras for military aircraft.

La-Z-Boy Inc. (LZB US) dropped 11 percent, the most since June 2010, to $9.71. Wall Street Strategies equity analyst Brian Sozzi the maker of living-room recliners to “hold” from “buy” and lowered the price estimate to $9.50 from $13, citing “basically non-existent” traffic to retail stores and exposure to import inflation.

Mueller Water Products Inc. (MWA US) slipped 4.7 percent, the most since Feb. 2, to $3.65. The maker of pipes and valves for water distribution and treatment centers was cut to “neutral” from “buy” by Ryan Connors, an analyst at Janney Montgomery Scott LLC, who cited weak demand, overcapacity in the industry and a levered balanced sheet.

Pilgrim’s Pride Corp. (PPC US) increased 16 percent, the most since September 2009, to $5.40. BB&T Capital Markets equity analyst Heather Jones raised the chicken producer to “buy” from “hold” and set the 12-month share-price estimate at $7.50, citing the company’s 18-month earnings outlook.

Royal Philips Electronics NV (PHG US) slumped 10 percent, the most since March 2009, to $23.36. The world’s biggest maker of light bulbs said it needs to deepen a cost-cutting program to combat deteriorating demand for lighting and consumer electronics.

Spartan Motors Inc. (SPAR US) rose 21 percent to $5.32 for the biggest gain of the Russell 2000 Index. BB&T Capital Markets equity analyst Rhem Wood started coverage of the maker of large- vehicle chassis with a “buy” rating and a $9 share-price estimate, citing recent acquisitions and new produces that create “considerable opportunity” for growth.

Sprint Nextel Corp. (S US) declined 2.3 percent to $5.12 the lowest price since May 17. The third-largest U.S. wireless operator may decline about 40 percent as it faces “considerable risks” particularly related to the company’s 4G strategy, said Craig Moffett, an analyst at Sanford C. Bernstein & Co., in a note.

Vanguard Health Systems Inc. (VHS US) rose 0.3 percent to $18.05 on the first trading day. The hospital operator controlled by Blackstone Group LP sold 25 million shares at $18 each, raising $450 million, in its initial public offering.

Western Refining Inc. (WNR US) jumped 11 percent, the most since Oct. 13, to $17.52. Deutsche Bank AG raised the refineries operator to “buy” from “hold” and increased the 12-month share-price estimate to $24 from $15, citing renegotiated debt terms.

--With assistance from Inyoung Hwang, Whitney Kisling and Lu Wang in New York. Editor: Stephen Kleege

To contact the reporters on this story: Victoria Stilwell in New York at vstilwell@bloomberg.net;

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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