Here’s what’s hot in the market today: Earnings reports bring mixed news as Koninklijke Philips, La-Z-Boy, and Adobe all fall while unmanned aircraft manufacturer AeroVironment saw growth following its call. And defense contractor L-3 jumps following rumors of a corporate split.
Koninklijke Philips (NYSE: PHG), parent company of Royal Philips Electronics known for its televisions and other entertainment technology, fell almost 10% to drop below $23.50 on more than eight times average trading volume. PHG issued a profit warning for its lighting and consumer-lifestyle divisions.
Adobe (NASDAQ: ADBE) fell almost 6% on Wednesday morning to around $30.40. Software company known for its Flash media platform and Photoshop reported flat revenues for the second quarter while earnings per share nearly doubled, jumping from 28-cents per share during the period in 2010 to 45-cents this year. However, a weak growth forecast sent stock down.
La-Z-Boy (NYSE: LZB) fell almost 9% to $10 on nearly 2 million shares. The dip came after La-Z-Boy reported fiscal year sales were flat, growing less than 1%.
AeroVironment (NASDAQ: AVAV), manufacturer of unmanned aircrafts for the Pentagon, was up almost 20% after reporting fiscal 2011 results. Revenues were nearly $293 million while net income came in at $26 million, up 25% from FY 2010. Shares were trading above $34.
L-3 Communications (NYSE: LLL) was up almost 5% on more than three times normal trading volume to top $86. Rumors that the military communications equipment contractor would be breaking up its business fueled the trading. Relational Investors LLC is positioned to become the majority shareholder in the company and is said to be pushing for the break up.