U.S. stocks closed mixed Friday as the Dow Jones Industrial Average fell 74 points to 12660, the Standard & Poor’s 500-stock index declined 2.1 points to 1316, and the Nasdaq Composite index gained 11 points to 2817. Among the companies whose shares are actively trading in the after-hours session are Amylin Pharmaceuticals Inc. (AMLN) and Alkermes Inc. (ALKS).
The U.S. Food and Drug Administration approved Amylin’s diabetes drug Bydureon after a prolonged regulatory process. The drug, which treats type 2 diabetes, was developed by the company along with its partner Alkermes. Shares of Amylin surged 15% to $ 13.95 after hours, while shares of Alkermes jumped 4.7% to $ 20.
Regular Session Movers:
Abaxis Inc. (ABAX, $ 27.46, -$ 1.66, -5.70%) posted fiscal third-quarter earnings and revenue late Thursday that fell short of analysts’ expectations. The medical products company said revenue for its instruments decreased 2% over the same period last year.
American Electric Power Inc.’s (AEP, $ 39.95, -$ 1.33, -3.22%) fourth-quarter earnings rose 75% on stronger wholesale volume, but retail volume shrank.
Arkansas Best Corp. (ABFS, $ 19.13, -$ 3.37, -14.98%) swung to a fourth-quarter profit as revenue edged up, but the transportation company’s results missed expectations as freight tonnage continued to decline.
Celestica Inc.’s (CLS, $ 7.99, +$ 0.32, +4.17%) fourth-quarter earnings rose 80%, with the company crediting its revenue-diversification efforts and a focus on operational effectiveness for the improvement.
Cepheid (CPHD, $ 43.14, +$ 8.79, +25.59%) swung to a fourth-quarter loss as a one-time patent-expiration charge masked a higher core profit lifted by rising clinical sales. The maker of biological testing systems reported stronger-than-expected results and upbeat guidance.
Chevron Corp.’s (CVX, $ 103.96, -$ 2.63, -2.47%) fourth-quarter earnings fell 3.2% as its refining arm swung to a loss, widely missing Wall Street’s expectations and overshadowing a large addition of new oil and gas reserves.
Chubb Corp.’s (CB, $ 67.42, -$ 2.93, -4.16%) fourth-quarter earnings fell 27% on higher losses and loss expenses, as the property-and-casualty insurer’s core profit also dropped despite more written premium growth. The disappointing results also dragged on shares of insurers Ace Ltd. (ACE, $ 69.46, -$ 1.79, -2.51%) and XL Group PLC (XL, $ 20.30, -$ 0.36, -1.74%).
Cigna Corp. (CI, $ 45.18, +$ 1.08, +2.45%) could beef up its presence in the market for Medicare-based health plans sooner than expected. The company said in a U.S. Securities and Exchange Commission filing that it may close its $ 3.8 billion acquisition of HealthSpring Inc. (HS, $ 54.97, +$ 0.17, +0.31%), which has more than 1.1 million customers on Medicare Advantage and Medicare prescription drug plans, by early next week.
Cliffs Natural Resources Inc. (CLF, $ 73.06, -$ 2.12, -2.82%) predicted 2011 per-ton revenue in its biggest segment would be at the low end of its target range, with volumes and average revenue coming in below or at the low ends of outlooks in other segments as well.
Columbus McKinnon Corp. (CMCO, $ 15.16, +$ 1.25, +8.99%) reported fiscal third-quarter results that handily beat Wall Street’s expectations as U.S. sales jumped 13% and the company gained market share in Europe, Asia and Latin America.
Oil refiner and retailer Delek US Holdings Inc. (DK, $ 12.03, -$ 0.74, -5.79%) predicted it would report a loss in the fourth quarter because of high oil costs and a decline in asphalt prices.
DeVry Inc.’s (DV, $ 37.57, -$ 2.13, -5.37%) fiscal second-quarter earnings plunged 90% on a write-down at its health-care college and another revenue declines. Earnings and revenue both fell more than expected. Wunderlich Securities says the “declines in revenue per student were a surprise, as were the scale of investments in businesses outside the business and technology segment.” But the firm stuck with its hold recommendation, as it does not expect DeVry to lower estimates again.
Dominion Resources Inc. (D, $ 49.56, -$ 1.29, -2.54%) posted lower fourth-quarter profit amid weakness in its wholesale power business. The company’s per-share earnings also fell below analysts’ predictions.
Eastman Chemical Co.’s (EMN, $ 50.41, +$ 3.29, +6.98%) fourth-quarter earnings soared as the company reported broad revenue growth, led by its performance chemicals and intermediates segment, and as charges weighed on year-ago results. Further, Eastman agreed to acquire peer specialty-chemicals maker Solutia Inc. (SOA, $ 27.52, +$ 8.01, +41.06%) in a cash and stock deal worth about $ 3.38 billion, a purchase it said will extend its global presence and stabilize margins. For each Solutia shares, stockholders will receive $ 22.00 in cash and 0.12 of an Eastman common share.
Electro Scientific Industries Inc. (ESIO, $ 15.49, -$ 1.16, -6.97%) posted third-quarter revenue figures that fell below analysts’ expectations. The microengineering-systems maker’s fourth-quarter revenue outlook also came in below consensus.
Emulex Corp. (ELX, $ 10.66, +$ 1.39, +14.99%) swung to a fiscal second-quarter profit following a year-earlier write-down, while sales of its data-storage products surged. The company also predicted an optimistic adjusted third-quarter profit.
Fair Isaac Corp.’s (FICO, $ 36.01, -$ 3.22, -8.21%) fiscal first-quarter revenue and earnings beat analysts’ expectations, but the firm backed its full-year 2012 guidance at a level beneath Wall Street’s consensus view.
Federated Investors Inc. (FII, $ 17.60, -$ 1.11, -5.93%) reported a 20% drop in fourth-quarter earnings that fell short of Wall Street’s consensus. The loss was due to the negative impact of money-market fund minimum-yield waivers, the Pittsburgh-based investment management firm said.
Ford Motor Co. (F, $ 12.21, -$ 0.53, -4.16%) reported a record fourth-quarter profit on a one-time tax allowance, although slower sales in the European markets and production losses caused by the recent flooding in Thailand chipped away at the auto maker’s profitability.
Freescale Semiconductor Holdings I Ltd.’s (FSL, $ 16.41, +$ 0.72, +4.59%) fourth-quarter loss narrowed sharply even as its top line shrank on weaker sales. Core earnings, meanwhile, notched a bigger-than-expected improvement driven by stronger margins.
Standard & Poor’s Ratings Services lowered its outlook on Frontier Communications Corp. (FTR, $ 4.31, -$ 0.16, -3.58%) to negative from stable, noting the regional telecommunications provider’s declining revenue due to competition from wireless substitution and cable companies that offer telephone and data services.
Green Dot Corp. (GDOT, $ 28.59, -$ 3.35, -10.49%) missed fourth-quarter revenue estimates and gave 2012 guidance that disappointed some analysts. The prepaid-card company managed to improve on some key metrics, including the number of new cards activated and cash transfers, but they didn’t meet the expectations of Keefe, Bruyette & Woods, which called the trends “lackluster.”
Hancock Holding Co.’s (HBHC, $ 32.11, -$ 1.06, -3.20%) fourth-quarter earnings rose 11%, and the regional lender’s core earnings jumped on takeover-boosted interest income. But its provision for loan losses was basically flat compared with a year earlier and earnings missed analysts’ expectations.
Idexx Laboratories Inc.’s (IDXX, $ 83.46, -$ 3.85, -4.41%) fourth-quarter results narrowly beat expectations, but shares fell as the company lowered the high end of its current-year revenue guidance.
Inergy L.P. (NRGY, $ 17.33, -$ 5.35, -23.59%) said it is evaluating its operating businesses and is in the process of major cost reductions in its propane units, after the energy company reported its distributable cash flow for 2011 covered only 68% of its dividend payments. Shares fell after the company said it will consider resetting its quarterly distributions to a more sustainable level. Baird cut its stock-investment rating on the company to underperform from outperform and slashed its price target to $ 14 from $ 31, because management “has stumbled by injecting uncertainty about the level of distributions going forward.” Baird expects Inergy’s next distribution to be half of current levels. Recent spinoff Inergy Midstream (NRGM, $ 20.18, -$ 0.28, -1.37%) also fell.
Shares sank on news that drug developer Infinity Pharmaceuticals Inc. (INFI, $ 5.98, -$ 3.97, -39.92%) is stopping a Phase 2 clinical trial of a drug to treat pancreatic cancer, after it said it found that the trial wouldn’t meet the company’s goals.
Informatica Corp.’s (INFA, $ 43.37, +$ 5.09, +13.30%) fourth-quarter earnings rose 22% on higher sales. Shares rose despite the company’s full-year profit outlook that comes below expectations because of an expected loss of a tax benefit.
J.B. Hunt Transport Services Inc.’s (JBHT, $ 50.81, +$ 1.51, +3.06%) fourth-quarter earnings rose 25% as the trucking company again reported revenue gains across its segments, led by its intermodal unit.
Juniper Networks Inc.’s (JNPR, $ 21.69, -$ 0.68, -3.04%) fourth-quarter profit fell 49% as the network-gear maker’s router sales continued to weaken. The company forecast a grim first-quarter adjusted profit that missed analysts’ expectations. Moreover, Stifel Nicolaus downgrades Juniper to hold from buy disappointed by the company’s first-quarter guidance on earnings and margins. Miller Tabak says “it will be difficult for Juniper to build back to flat for the year much less to get to double digit growth.”
KLA-Tencor Corp.’s (KLAC, $ 52.33, +$ 2.07, +4.12%) fiscal second-quarter earnings fell 40% amid lower-than-expected revenue and weaker margins. However, the company, which makes systems that monitor semiconductor wafer production, was in line with its projected earnings and revenue figures. Service revenue in particular saw an increase.
Leap Wireless International Inc. (LEAP, $ 8.97, -$ 0.28, -3.03%) said its Chief Financial Officer Walter Z. Berger will leave the company for another job in the technology sector shortly after the company reports its full-year results.
Legg Mason Inc.’s (LM, $ 26.02, -$ 1.30, -4.76%) fiscal third-quarter earnings fell 54% as the money manager saw a drop in advisory fees. The company’s operating revenue had grown in recent quarters, thanks to higher investment-advisory fees. But funds fees, the largest top-line contributor, were down 8.5% in the latest period.
Lpath Inc. (LPTN, $ 0.99, -$ 0.30, -23.26%), the industry leader in lipidomics-based antibody therapeutics, has temporarily suspended dosing patients in its PEDigree and Nexus trials after learning that one of its contractors was not in compliance with the U.S. Food and Drug Administration’s requirements.
MagnaChip Semiconductor Corp. (MX, $ 9.25, +$ 0.72, +8.44%) announced that its Korean subsidiary will acquire Dawin Electronics Co. Ltd., a privately held semiconductor company. MagnaChip, which makes semiconductors for consumer products such as mobile phones and televisions, said the acquisition will allow the company to expand its Power Solutions business into commercial and industrial segments.
S&P Capital IQ cut its stock-investment rating and trimmed its full-year EPS forecast on Microsemi Corp. (MSCC, $ 19.81, -$ 0.58, -2.82%), noting that the company missed the firm’s EPS estimate. The firm also said that while sales rose 6% from the fourth quarter, aided by partial revenue from the acquisition of Canadian chip maker Zarlink Semiconductor Inc., margins narrowed.
Newell Rubbermaid Inc.’s (NWL, $ 18.82, +$ 1.39, +7.97%) fourth-quarter profit rose 6.2% as the company booked improved sales and reported stronger demand for its baby and parenting products.
Oshkosh Corp. (OSK, $ 25.41, +$ 0.61, +2.46%) said at least 12 of its 13 board nominees have been elected, defeating an attempt by activist shareholder Carl Icahn to install an alternate slate of company directors.
QLogic Corp.’s (QLGC, $ 17.55, +$ 0.50, +2.94%) fiscal third-quarter revenue and earnings came in above analysts’ expectations as the chip maker’s host products sales grew 7% sequentially.
Half International Inc.’s (RHI, $ 27.75, -$ 2.01, -6.75%) fourth-quarter profit rose 72% as the company said it saw strong demand for staffing in the technology and accounting sectors. Despite the gains, the company’s earnings and revenue missed Wall Street’s predictions.
Deutsche Bank raised its stock-investment rating on ResMed Inc. (RMD, $ 30.06, +$ 2.85, +10.47%) to buy from hold, noting that continued double-digit mask sales growth supported by industry replenishment programs remains the company’s key driver of earnings growth.
Riverbed Technology Inc.’s (RVBD, $ 24.45, -$ 5.47, -18.28%) fourth-quarter profit rose 60% on sharply higher sales, but the company said an upgrade of its key product this quarter will contribute to slower-than-expected growth in early 2012.
Seagate Technology PLC (STX, $ 20.77, +$ 0.97, +4.90%) added $ 1 billion to its stock buyback plan and raised its quarterly dividend by 39%, joining a long list of companies putting their cash holdings to work and returning value to shareholders.
SVB Financial Group (SIVB, $ 56.57, +$ 3.57, +6.74%) posted fourth-quarter earnings and revenue that surpassed analysts’ expectations.
Synaptics Inc. (SYNA, $ 36.98, +$ 2.64, +7.69%) shares rallied to a two-and-a-half year high as fiscal second-quarter results and expectations for the electronic-interface maker “were solid in light of a tough macro environment,” Needham & Co. says. “Relative to its direct touch competitors, Synaptics is gaining share in the handset space and we see strong momentum in the tablet market.” The firm upgraded the company to buy and set a $ 41 price target.
Craig-Hallum raised its stock-investment rating on Teradyne Inc. (TER, $ 16.95, +$ 0.54, +3.29%) to buy from hold, noting that the maker of chip-testing equipment is “well positioned for growth as the market is expected to transition from PC spending in 2011 to Teradyne’s focus areas in high-end/mobility in 2012.”
T. Rowe Price Group Inc.’s (TROW, $ 59.82, -$ 1.22, -2.00%) fourth-quarter profit slipped 1.7% as higher costs and modest increases in spending masked better-than-expected revenue from the massive money manager.
Timken Co.’s (TKR, $ 49.04, +$ 1.37, +2.87%) fourth-quarter profit rose a stronger-than-expected 21% as the parts maker’s industrial supply business reported stronger sales.
Shares of Transocean Ltd. (RIG, $ 48.13, +$ 0.87, +1.84%) (RIGN.VX) rose after a U.S. federal judge ruled Thursday that BP PLC (BP, $ 43.70, -$ 1.07, -2.39%) (BP.LN) must indemnify the oilfield-services firm against compensatory damages linked to the 2010 Gulf of Mexico spill. However, the judge also said BP wouldn’t have to protect Transocean from punitive damages or civil penalties under the Clean Water act. The news boosted Halliburton Co.’s (HAL, $ 37.10, +$ 0.94, +2.60%) stock, as investors are assuming that the decision, which would significantly reduce Transocean’s potential disbursements in the Deepwater Horizon legal fight, could apply to Halliburton as well.
Unprofitable biopharmaceutical firm Verastem Inc. (VSTM, $ 11.09, +$ 1.09, +10.90%) climbed after boosting the size of its deal. The company’s stock opened at $ 11 a share on the Nasdaq, up from its initial public offering price of $ 10. It sold 5.5 million shares, a million more than originally planned, at the midpoint of its expected $ 9 to $ 11 price range.
-Edited by Maya Pope-Chappell and Ian Thomson; write to maya.pope-chappell@dowjones.com and ian.thomson@dowjones.com
