More Market Buzz: Apollo Group, Spartan Stores, MGM Resorts, Apple, Chesapeake Energy, Priceline, Siga Technologies, Walgreen

U.S. stocks closed higher Wednesday as the Dow Jones Industrial Average gained 76 points to 11096, the S&P 500 rose 8.3 points to 1178 and the Nasdaq Composite moved up 23 points to 2441. Among the companies whose shares are actively trading in the after-hours session are Apollo Group Inc. (APOL), Universal Forest Products Inc. (UFPI) and Spartan Stores Inc. (SPTN).

Apollo Group’s fiscal fourth-quarter profit dropped 55% on a $175.9 million write-down despite revenue growth, as the results topped expectations. But shares dropped 11% to $43.94 in after-hours trading as the education company withdrew its guidance for the fiscal year, citing “the transitional state of the business and the uncertain regulatory environment.” Shares of other for-profit schools also declined, with DeVry Inc.’s (DV) stock down 5.3% to $47.88 after-hours and Corinthian Colleges Inc.’s (COCO) shares down 4.2% to $5.77.

Universal Forest Products’ third-quarter earnings unexpectedly plunged 74% as the company’s margins remain plagued by the spring’s spike in lumber prices. The company also said it didn’t expect to achieve earnings growth for the full year. Analysts surveyed by Thomson Reuters were predicting 10% growth in earnings per share. Universal Forest Products’ shares fell 14% in late trading to $27.00.

Spartan Stores’ fiscal second-quarter profit grew 7.7% as the grocery distributor and retailer reported higher margins, although sales fell across both of its businesses. Shares grew 4.5% to $15.89 in after-hours trading, as results topped expectations.

The sale of stock by MGM Resorts International (MGM, $12.10, -$1.51, -11.09%) and its largest holder priced at a 7.1% discount to Tuesday’s close as the casino company raised cash for debt repayment. The planned sale was disclosed late Tuesday as MGM also projected a second-quarter loss excluding write-downs, slightly less than analysts’ expectations.

Railway company CSX’s (CSX, $59.66, +$2.40, +4.19%) third-quarter profit climbed 43%, reaching a record for the period, as revenue jumped on overall volume growth, helping push results above Wall Street’s expectations.

Linear Technology (LLTC, $30.80, -$0.76, -2.41%), a maker of circuits for a range of industries, reported its fiscal first-quarter earnings more than doubled, although the chip maker’s bottom line was just shy of expectations.

Clearwire Corp. (CLWR, $7.21, +$0.46, +6.81%) is seeking to raise $2.5 billion to $5 billion in a wireless spectrum auction, according to a Bloomberg News report citing people with direct knowledge of the sale. Potential buyers of the spectrum include AT&T Inc. (T, $28.47, +$0.08, +0.28%), Verizon Wireless,

Deutsche Telekom AG (DTEGY, $13.95, +$0.23, +1.68%), Time Warner Cable Inc. (TWC, $56.21, +$0.15, +0.27%) and Clearwire’s majority owner, Sprint Nextel Corp. (S, $4.63, +$0.04, +0.87%) said the people, who declined to be identified because the process isn’t public.

Aixtron AG (AIXG, $31.78, +$3.09, +10.77%) and Veeco Instruments Inc. (VECO, $41.03, +$4.00, +10.80%) shares rose sharply Wednesday. An FBN Securities analyst says decent earnings reports from ASML Holding NV and Intel Corp. (INTC, $19.24, -$0.53, -2.68%) act as “sign that capital equipment expenditures are not falling off a cliff,” which assures wary investors. Also driving up the LED application makers’ shares is a short squeeze, the firm said. Positive sentiment for Aixtron and Veeco’s earnings is driving investors to cover short positions on the volatile stocks, which often move on sentiment toward LED demand.

Apple Inc. (AAPL, $300.14, +$1.60, +0.54%) shares rose above $300 for the first time in the company’s history, another symbolic milestone for the Silicon Valley electronics giant that was struggling just a decade ago.

Dutch semiconductor-equipment maker ASML Holding NV (ASML, $32.15, +$1.58, +5.17%) Wednesday got the European tech earnings season off to a strong start, posting record third-quarter sales as major global chip companies invest in capacity growth and the latest chip-making equipment.

Atlantic Power Corp. (AT, $13.50, -$0.57, -4.05%) announced plans to sell at least 5.1 million shares. Coupled with a planned sale of a minimum C$70 million of convertible debt, the stock sale will raise capital for efforts including a biomass project in Georgia. Some also will go toward debt repayment and possible acquisitions.

JMP Securities cut its stock-investment rating on retailer Big Lots Inc. (BIG, $32.93, -$0.97, -2.86%) to market perform from market outperform, saying the stock could be stuck in a holding pattern for the next six months. The firm said that as a result of a less favorable sales mix in the second half and the chance of increased competitive pressures, among other factors, it doesn’t see potential for upside to consensus estimates for the third and fourth quarters.

Cantel Medical Corp. (CMN, $16.50, -$0.26, -1.55%), a provider of infection prevention and control products, reported better-than-expected fiscal fourth-quarter results, which the company credited to sales and marketing investments in several of its divisions.
Natural gas company Chesapeake Energy Corp. (CHK, $23.24, -$0.63, -2.64%) announced that its chief financial officer of the past 18 years, Marcus Rowland, will leave that post at month’s end to become president of a hydraulic fracturing company in which Chesapeake owns a 26% stake.

Cheviot Financial Corp. (CHEV, $8.50, -$0.03, -0.35%) said it will buy fellow small Cincinnati-based bank First Franklin Corp. (FFHS, $14.14, +$6.32, +80.82%) for about $24.4 million, a deal that will double Cheviot’s size. Under the agreement, Cheviot will buy First Franklin shares for $14.50 piece an 85% premium to Tuesday’s closing price. The stock was last at the offer price three years ago.

Discover Financial Services (DFS, $17.68, +$0.59, +3.45%) shares rose, buoyed by the company’s agreement with First National Bank Alaska. The agreement opens new doors for Discover, a card issuer and electronic payment processor. As a result, Discover cards will be accepted by First National’s portfolio of merchants, such as retailers and grocery stores.

EXFO Inc. (EXFO, $6.35, +$0.54, +9.21%) swung to a better-than-predicted profit in its fiscal fourth quarter as the maker of telecommunications-testing equipment reported another surge in revenue.

Bludgeoned by lower-price rivals and strapped for cash, grocer Great Atlantic & Pacific Tea Co. (GAP, $3.30, -$0.68, -17.09%) is sounding out restructuring advisers about reworking its debt-heavy balance sheet, people familiar with the matter told The Wall Street Journal.

Shares of Holly Corp. (HOC, $32.43, +$2.08, +6.85%), Tesoro Corp. (TSO, $14.37, +$0.53, +3.83%), Western Refining Inc. (WNR, $6.51, +$0.84, +14.81%) and CVR Energy Inc. (CVI, $9.63, +$0.68, +7.60%) all climbed on high volume after the International Energy Agency raised its forecast for world oil demand. IEA’s monthly report says global demand will hit 86.9 million barrels a day this year, up from last month’s estimate of 86.6 million. Also helping refiners, strikes forced Total SA (TOT, $53.95, +$0.90, +1.70%) to shut down half of France’s refineries. Howard Weil says crude demand plus these strikes are giving companies a “double whammy” benefit as less output helps the group.

Stifel Nicolaus raised its stock-investment rating on Knot Inc. (KNOT, $9.55, +$0.61, +6.82%) to buy from hold, saying that over a three-year period the media company’s stock could double from current levels.

Local.com Corp. (LOCM, $4.51, +$0.53, +13.32%), a provider of location-oriented Internet search services, expects third-quarter earnings to handily top its upbeat July estimate as its acquisition of a start-up peer drove margins, but it trimmed topline expectations.

CLSA says investors should look beyond Monsanto Co.’s (MON, $54.69, +$2.44, +4.67%) SmartStax corn-seed kerfuffle and focus on margins, starting coverage at outperform. “Farmers aren’t as upset with Monsanto as investors are,” the firm says. “Monsanto still has the best technology for many, if not most corn and soy applications,” and “investors are underestimating what acres and margin growth could mean for earnings near term if penetration pricing means more seed sales.”

Morgan Keegan raised its stock-investment rating on Priceline.com Inc. (PCLN, $341.04, +$4.86, +1.45%) to outperform from market perform, as the firm said its major concerns about the foreign-exchange environment and economic uncertainty in Europe affecting travel “look to have been for naught.”

Drug-development company Siga Technologies Inc. (SIGA, $12.47, +$3.91, +45.68%) said the U.S. Department of Health and Human Services intends to contract with the company for a smallpox antiviral, pending the resolution of a complaint by a rival bidder, in a contract potentially worth $2.8 billion.
Sirius XM Radio Inc. (SIRI, $1.40, +$0.05, +3.70%) reported third-quarter new-subscriber growth tripled in the third quarter and announced plans to sell up to $550 million in eight-year notes to institutional investors as it seeks to refinance shorter-term debt.

St. Joe Co. (JOE, $22.16, -$2.38, -9.70%) shares dropped after hedge fund manager David Einhorn turned negative on the real estate development company. Einhorn, who runs hedge-fund Greenlight Capital, said Wednesday at the Value Investing Congress in New York that the company is facing a number of challenges that will hurt its share price. Among his concerns: Lots are being sold below cost, there are a number of vacant sites in its portfolio of properties, and there’s been minimal write-downs. St. Joe wasn’t immediately available for comment.

Telecommunications firm Ulticom Inc. (ULCM, $8.07, +$0.38, +4.97%) agreed to be acquired by private-equity firm Platinum Equity LLC for about $90 million. President and Chief Executive Shawn Osborne said the board determined that the 5% premium to Monday’s closing price offered “the best value for our stockholders.”

Walgreen Co.’s (WAG, $34.80, +$0.76, +2.23%) board authorized spending a fresh $1 billion for share buybacks, two weeks after the drug-store giant announced it completed a $2 billion effort three years ahead of schedule.

Williams Cos. (WMB, $21.53, +$1.92, +9.79%) and its pipeline unit said Chairman and Chief Executive Steve Malcolm will retire at the end of the year. Alan Armstrong, president of Williams’ midstream business since 2002, will become chief executive while director Frank MacInnis will take the chairman’s title. The shares climbed as investors likely hope this ushers in a new strategic direction. Malcolm will likely be remembered for leading Williams during an “extraordinarily challenging” period, Wells Fargo says. The firm said it can’t help but wonder “what this ultimately means for the future strategy of WMB and the potential for yet another restructuring.”