NEW YORK (AP) - VeriFone Holdings Inc.'s restatement and Phillips-Van
Heusen's disappointing outlook were among the items that caught investor
attention this week.
On Monday, VeriFone shares plunged after the payment processing equipment
maker said it overstated its profit before taxes by almost $30 million, or 80
percent, in the first three quarters of the fiscal year. San Jose, Calif.-based
VeriFone will restate results from the first three quarters of fiscal 2007.
Shares dropped nearly 46 percent to close at $26.03 as trading volume soared
to close to 50 million shares, more than 21 times its daily average of around
2.4 million shares.
Shares continued to decline and volume remained well above average as the
week continued, with analysts slashing estimates and Credit Suisse downgrading
the stock late Tuesday. Several class action suits were announced as well, and
the stock ended at $20.20 on Thursday.
Shares started the session Friday with another drop, hitting a two-year low
of $18.50. But it then reversed course, and by session's end, posted a gain for
the day of $1.95, or 9.7 percent, to close at $22.15, a total drop of about 54
percent for the week.
Tuesday, shares of Phillips-Van Heusen Corp. dropped sharply. The apparel
maker late Monday posted profit outlooks for the fourth quarter and 2008 that
both missed Wall Street expectations even as third-quarter results came in ahead
of forecasts.
The stock declined 13.1 percent to end at $37.64, after tumbling to a
52-week low of $36.65 during the session. Shares exchanged hands in around six
times average trading volume.
The stock edged higher as the week continued, with volume about double
normal trading on Wednesday and then returning to normal for the rest of the
week. Shares on Friday gained $1.74, or 4.4 percent, to $41.75, but still
finished down 3.4 percent lower since the New York company posted its results.
The spotlight fell Wednesday on Comcast Corp., which dropped sharply
following its warning that cash flow and revenue for the year will decline
because of a softening economy. Comcast cut its 2007 revenue growth forecast to
11 percent from 12 percent, sending shares down 12.3 percent to close at $18.18
as volume soared to more than 117 million shares, more than four times average
trading volume.
Shares finished slightly higher on Thursday at $18.30, when a Morgan Stanley
analyst upgraded the stock and said growth potential wasn't reflected in the low
share price. Volume remained about twice normal trading.
On Friday, the stock was essentially flat, slipping 2 cents to end at $18.28
as volume remained well above normal. The stock finished 11.8 percent lower
since the Philadelphia company posted its warning.
Shares of UTI Worldwide Inc. declined sharply on Thursday, after the freight
logistics company said Wal-Mart Stores Inc. decided to end an outsourcing
contract, effective March 1.
And although UTI also reported a higher fiscal 2008 third-quarter profit,
the stock declined to a three-year low of $18.40 in trading volume around 10
times its average. Shares declined 21.1 percent to close at $18.52. Shares
dropped to another low of $18 at the open Friday, then bounced around during the
session to end off 12 cent
Smith & Wesson Holding Corp. was Friday's loser, dropping $2.84, or 28.6
percent, to close at $7.08, after setting a 52-week low of $6.68 during the
session. Volume shot up to more than 10 times average trading volume.
The gun maker slashed its fiscal 2008 profit forecast for the second time in
six weeks, causing at least two analysts to cut their ratings on the stock,
which traded as high as $22.80 in August.
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