Stocks gain ground
April 20 (SmallCapInvestor.com) – Wall Street is rallying following news of better-than-expected financial results by Google Inc. and other heavyweights. Among small caps, Bell Microproducts Inc. (Nasdaq: BELM) has reported record first-quarter revenue, while Strattec Security Corporation (Nasdaq: STRT) received an analyst upgrade.
At 11:18 AM the Russell 2000 was up 7.66 points, or 0.93 percent, to 826.98, after losing ground for three days in a row. The Dow Jones Industrial Average had added 106.95 points, or 0.83 percent, to 12,915.58.
Shares of Milwaukee, Wis.-based mechanical lock maker Strattec Security Corporation are trading higher on news of an upgrade. Before the opening bell analyst Robert W. Baird upgraded the company’s stock to “neutral” from “underperform.” Earnings for the three month period ended April 1, 2007, were $0.82, Strattec said after Thursday’s close, below earnings per share of $1.10 in the prior year quarter but above Wall Street’s projections of $0.30 per share. Shares have added $2.55, or 6.03%, to $44.87.
Trucking transportation company Saia Inc. (Nasdaq: SAIA) is up on news its first quarter profit climbed 27%. Revenue for the first three months of 2007 was $231.8 million, an increase of 13% from $204.6 million in the same period a year earlier, Saia said before the opening bell. However, quarterly earnings were $0.21 per share, below analysts’ projections of $0.24 per share. In the same quarter a year ago Saia reported earnings of $0.16 per share. The stock is up $5.01, or 20.19%, to $29.82.
Shares of San Jose-based Bell Microproducts Inc. have moved into positive territory on news of record revenues in the first quarter. Preliminary results indicate revenue for the first three months of 2007 will be between $990 million and $1.01 billion, compared with revenue of $867 a year earlier, the distributor of high-tech products said after Thursday’s close. The rise is primarily due to increased sales in Europe, Bell Microproducts’ most important market. Shares are up $0.63, or 9.77%, to $7.08.
Today’s rally was ignited by news after the close Thursday of a jump in quarterly profit by Google Inc. (Nasdaq: GOOG) and news of strong earnings elsewhere.
Google’s first-quarter profit rose 69% to $1 billion, the company said after Thursday’s close. McDonald’s Corporation (NYSE: MCD) said its net income increased 22% to $762.4 million, while heavy-equipment manufacturer Caterpillar Inc. (NYSE: CAT) raised its profit forecast for 2007.
