DeVry forecast downbeat results for its fiscal fourth quarter and said it plans to cut its workforce, as the for-profit educator said higher-than-anticipated operating costs and continued weakness in student enrollment continued to weaken its results. Shares slumped 23% to $21.20 after hours. The weak guidance also pressured shares of peer ITT Educational Services Inc. (ESI), which fell 5% to $54.50.
Baidu's second-quarter profit grew 70% as the Chinese Internet-search giant saw its revenue still soaring on stronger ad sales, though costs continued to rise. American depositary shares jumped 7.1% to $114.69 as results beat analysts' estimates.
VMware disclosed its second-quarter earnings slipped 13% as margins weakened and also said it plans to acquire software-defined networking company Nicira Inc. in a deal worth $1.26 billion, adding to its networking assets. The software maker's shares sank 4.1% to $85.56 after hours.
Regular Session Movers:
Shares of pharmaceutical company Akorn Inc. (AKRX, $13.73, -$1.17, -7.85%) slumped Monday after Deutsche Bank analysts cut the stock to hold from buy and lowered estimates for 2013 and 2014 below consensus views, saying it believes one of the company's biggest generic opportunities has been "significantly diminished."
Shares of Cree Inc. (CREE, $23.00, -$0.84, -3.52%), a maker of light-emitting diodes and electric components, slumped Monday after Needham cut its price target on the stock to $25 from $28, citing a more conservative view for LED lighting adoption and expectations for weaker pricing.
Sterne Agee lowered its rating on Deckers Outdoor Corp. (DECK, $43.43, -$3.24, -6.94%) to underperform ahead of second-quarter results expected from the footwear maker Thursday. "We would not be involved in [Deckers] going into the quarter," the firm wrote in a note to clients, saying it expects the company will lower its full-year guidance and believes there is a "high probability" Asian and European sales won't improve this year.
A selloff this month of Dean Foods Co. (DF, $12.62, +$0.49, +4.04%) took a pause Monday as U.S. grain futures fell, easing some concerns about the diary giant's rising input costs.
DigitalGlobe Inc. (DGI, $15.04, +$0.82, +5.77%) agreed to acquire fellow satellite-imagery company GeoEye Inc. (GEOY, $20.43, +$5.26, +34.67%) for about $450 million, turning the tables after GeoEye made public a bid for DigitalGlobe in May.
Eaton Corp.'s (ETN, $40.57, +$1.51, +3.87%) second-quarter profit rose 14%, but revenue dropped as weakening demand from overseas markets caused the company to scale back its revenue and earnings forecasts for 2012. However, the diversified manufacturer's second-quarter profit topped analysts' expectations, as improved margins and a lower tax rate offset lower revenue.
GenCorp Inc. (GY, $7.58, +$0.83, +12.30%) agreed to acquire United Technologies Corp.'s (UTX, $73.28, -$0.95, -1.28%) Rocketdyne business currently part of Pratt & Whitney for about $550 million. The move is expected to nearly double the size of GenCorp, a maker of aerospace and defense products.
NRG Energy Inc. (NRG, $19.52, +$1.47, +8.14%) said Sunday it plans to acquire rival GenOn Energy Inc. (GEN, $2.29, +$0.47, +25.82%) in a $1.7 billion all-stock deal that would create the largest competitive power company in the U.S.
Genesee & Wyoming Inc. (GWR, $56.33, +$0.35, +0.63%) has agreed to buy RailAmerica Inc. (RA, $27.25, +$2.44, +9.83%) for $1.39 billion in cash, a move that combines the two largest short-line and regional-railroad operators in North America.
Halliburton Co.'s (HAL, $31.51, +$0.74, +2.40%) second-quarter earnings narrowly slipped as rising costs and pricing pressures masked the oil-field-services provider's revenue growth. However, the company's rising international profile helped it beat Wall Street's expectations.
Hasbro Inc.'s (HAS, $35.19, +$1.35, +3.99%) second-quarter profit fell 25% as sales slid across nearly all major segments. The toy maker's results were mixed, but investors looked past a miss in revenue and pushed the stock higher as earnings easily beat market estimates.
Technology companies focused on the corporate world ranked among the biggest losers in Monday's selloff, as fresh concerns over a potential bailout for Spain apparently has investors in no mood to bet on the next big thing. Broadband-products maker JDS Uniphase Corp.'s (JDSU, $8.78, -$0.53, -5.64%) drop was the steepest in the S&P 500 while Microsoft Corp. (MSFT, $29.28, -$0.84, -2.77%) assumed the biggest slide in the Dow. Other victims include remote-desktop enabler Citrix Systems Inc. (CTXS, $77.77, -$2.98, -3.69%), data center gear maker F5 Networks Inc. (FFIV, $93.59, -$2.51, -2.61%) and mainframe software maker BMC Software Inc. (BMC, $39.30, -$1.12, -2.77%).
Analysts predict the second half of the year will be better for telecom-equipment company Juniper Networks Inc.'s (JNPR, $15.22, -$0.43, -2.75%) top line than the first, but that might not be enough to lift the stock. Telecom and networking companies are "incrementally more negative" about spending, notes Topeka Capital, though they still plan to shell out more than in the first half. Still, the investment bank says Juniper's second-half revenue is at risk.
Leerink Swann raised its rating for biological-testing-supplies producer Luminex Corp. (LMNX, $17.44, +$0.49, +2.89%) to outperform from market perform, noting the company's planned acquisition of molecular diagnostic company GenturaDx and expected upcoming Food and Drug Administration clearance for its gastrointestinal pathogen panel.
Credit Suisse lowered its price target for temporary-employment agency ManpowerGroup (MAN, $32.41, -$1.05, -3.14%) to $45 from $54 primarily on a slowdown in Europe. The cut also assumes that macro headwinds intensify. In a note to clients, the firm said that it likes the long-term risk/reward profile for Manpower but that investors should expect near-term volatility.
McDonald's Corp. (MCD, $88.94, -$2.64, -2.88%) second-quarter earnings fell 4.5% as a stronger U.S. dollar outweighed better-than-expected same-store sales at the world's largest fast-food chain. Shares slumped as both earnings and revenue for the quarter fell short of analyst expectations.
Goldman Sachs has turned positive on home builders even after 2012's stock gains, saying now is "the beginning of a longer positive trend in housing-related equities." The investment bank added M.D.C. Holdings Inc. (MDC, $33.18, +$1.79, +5.70%) to its conviction buy list, saying it has the sector's best balance sheet, while it boosted KB Home (KBH, $10.16, +$0.35, +3.57%) to buy and Ryland Group Inc. (RYL, $26.64, +$0.91, +3.54%) to neutral. But after its dour second-quarter report, Goldman bumped NVR Inc. (NVR, $745.51, -$16.44, -2.16%) down to sell.
The major U.S. banks joined a broad selloff with their European counterparts Monday as new fears arose over a potential bailout for Spain. Yields on Spanish government bonds hit their highest levels since the inception of the euro, and several of the country's regions said they will ask the central government for assistance. "I think some people wanted to forget about what's going on in Europe, but now the negative headlines are rearing their head again," said Jonathan Corpina, senior managing partner at NYSE-floor broker Meridian Equity Partners. Shares of Morgan Stanley (MS, $12.64, -$0.14, -1.10%), which has faced question about its European exposure, were particularly hard-hit. Citigroup Inc. (C, $25.34, -$0.53, -2.05%) and Goldman Sachs Group Inc. (GS, $93.16, -$1.00, -1.06%) also traded lower.
China's Cnooc Ltd. (CEO, $193.96, -$8.79, -4.34%) (0883.HK) said Monday it has reached an agreement to acquire oil and gas producer Nexen Inc. (NXY, $25.90, +$8.84, +51.82%) for $15.1 billion, in what will be China's biggest overseas energy acquisition to date. Nexen shareholders are offered $27.50 a share under the proposed deal.
Oil transporters took a beating as low rates, lower U.S. fuel consumption and a glut of tankers continued to drive investors away from the stocks. Tanker rates are averaging less than $5,000/day, a far cry from the $25,000 to $30,000 that Overseas Shipholding (OSG, $6.11, -$0.42, -6.43%) and Frontline (FRO, $3.77, -$0.16, -4.07%) need to break even, Jefferies's Doug Mavrinac told Dow Jones Newswires. "These companies are losing money and unable to cover cash costs."
Peet's Coffee & Tea Inc. (PEET, $73.05, +$15.89, +27.80%) agreed to be taken private by investment group Joh. A. Benckiser in a roughly $1 billion cash deal. Shareholders of the struggling coffee chain will receive $73.50 a share, a 29% premium over the stock's Friday closing price.
PetMed Express Inc.'s (PETS, $9.64, -$1.62, -14.39%) fiscal first-quarter net income fell 18% as the retail pet pharmacy saw declines in average order size weigh on sales. Earnings and revenue for the quarter missed Wall Street estimates.
Savient Pharmaceuticals Inc. (SVNT, $0.69, +$0.18, +35.29%) said the Delaware Court of Chancery decided that Tang Capital Partners LP and some of Savient's other debtholders didn't have the standing to take action to appoint a receiver for the New Jersey-based company and that Savient hasn't defaulted on its convertible notes.
Online postal services provider Stamps.com Inc. (STMP, $24.00, -$1.47, -5.77%) felt the sting of last week's negative U.S. Postal Service news as shares fell on fears that USPS could miss a legally required $5.5 billion payment into health-benefits fund for future retirees before Aug. 1, barring congressional action. The default would be a first for the post office. However, Craig-Hallum Capital Group analyst George Sutton told Dow Jones that "Stamps.com is positioned to be a key portion of the online answer to the changes that need to be made" to the overly large store-based infrastructure of the current post office system. Describing today's sellers as reading the situation "incorrectly," Sutton added that "when a post office closes, a small business owner is more likely to use an online service to accomplish the same tasks they needed before."
STR Holdings Inc. (STRI, $3.98, -$0.12, -2.93%) lowered its second-quarter revenue projection on softer-than-anticipated demand for its solar encapsulants.
Canada's Talisman Energy Inc. (TLM, $11.58, +$0.68, +6.24%) (TLM.T) is selling a 49% stake in its U.K. North Sea business to China Petroleum & Chemical Corp. (SNP, $88.64, -$1.14, -1.27%) (0386.HK) or Sinopec, for $1.5 billion. Calgary, Alberta-based Talisman said the move brings total asset-sale proceeds this year to about $2.5 billion and will enable it to fund growth areas in its energy portfolio.
Retailer Wet Seal Inc. (WTSLA, $2.66, -$0.30, -10.14%) fired Chief Executive Susan McGalla and lowered its current-quarter guidance after reporting a sharp decline in sales so far in July.
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