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Stocks Rise Amid Earnings Reports and M&A Speculation

Strategic Insights

— 1 min read

Shares of several companies rose significantly amid earnings reports and M&A speculation. Sun Microsystems Inc. (SUNW) jumped 16.5% after rumors surfaced that CEO Scott McNealy and Silver Lake Partners are considering taking the company private. Calpine Corp. (CPN) shares rose 15.2% after the energy company put its first-quarter loss at 38 cents a share and backed its full-year outlook, while Anadarko Petroleum Corp. (APC) may move higher after reporting better-than-expected first-quarter earnings.

Calpine's Chief Financial Officer Bob Kelly stated that the company's update was necessary due to recent market volatility triggered by false rumors. Anadarko's first-quarter earnings rose to $491 million, or $2.05 a share, beating the average analyst estimate of $2 a share. Cardinal Health Inc. (CAH) shares rose 1.8% after the company said it sees full-year earnings in-line with Wall Street views, while Idexx Laboratories Inc. (IDXX) rose nearly 1% to $54 in premarket trading after the company reported better-than-expected first-quarter earnings and full-year outlook.

Key Takeaways:

  • Sun Microsystems Inc. (SUNW) shares rose 16.5% after rumors surfaced that CEO Scott McNealy and Silver Lake Partners are considering taking the company private.
  • Calpine Corp. (CPN) shares rose 15.2% after the energy company put its first-quarter loss at 38 cents a share and backed its full-year outlook.
  • Anadarko Petroleum Corp. (APC) reported better-than-expected first-quarter earnings, with a profit of $491 million, or $2.05 a share.
  • Cardinal Health Inc. (CAH) sees full-year earnings in-line with Wall Street views despite a 15% drop in fiscal third-quarter profit.
  • Idexx Laboratories Inc. (IDXX) reported better-than-expected first-quarter earnings and full-year outlook, with shares rising nearly 1% in premarket trading.

Statistics:

  • Sun Microsystems Inc. (SUNW) shares rose by 16.5% to $4.01.
  • Calpine Corp. (CPN) shares rose by 15.2% to $1.67.
  • Anadarko Petroleum Corp. (APC) first-quarter earnings rose to $491 million, a 26% increase from the year-ago period.
  • Cardinal Health Inc. (CAH) fiscal third-quarter profit dropped 15%, from $429.3 million to $365.7 million.
  • Idexx Laboratories Inc. (IDXX) shares rose nearly 1% to $54 in premarket trading.

Sources:

  • Dow Jones Commodities News Select via Comtex, April 29, 2005.
  • Business Week's Inside Wall Street column, April 29, 2005.
  • Dow Jones Newswires, April 29, 2005.
  • COMTEX (http://www.comtexnews.com), April 29, 2005.

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