Record closes in sight
U.S. stocks are trading in positive territory, poised for a second consecutive day of record high closes. At 14:26 p.m. ET the Russell 2000 was up 3.69 points, or 0.44%, to 847.04. The Dow Jones Industrial Average had gained 17.39 points, or 0.13%, to 13,650.47.
Shares of Layne Christensen Co. (Nasdaq: LAYN), which provides drilling and construction services, are trading above their 52-week high on news of a record first quarter. The net income for the three months ended April 30 increased 73.3% to $8.15 million, or $0.52 per share, compared with $4.64 million, or $0.30 per share, a year earlier, the Mission Woods, Kan.-based company said before the opening bell. Three analysts surveyed by Thomson Financial were expecting earnings of $0.34 per share. The stock is at $44.65, up $3.25, or 8%. The previous 52-week high was $41.82, set on May 22.
Production problems have forced Trex Company, Inc. (NYSE: TWP) to lower its 2007 revenue guidance. Annual net sales are expected to be in the range of $330 to $350 million, the Winchester, Va.-based manufacturer of decking, railing and fencing announced after Wednesday’s close. Wall Street was looking for revenues of $352.17 million. “Bottom-line results have continued to be impacted by lower-than-expected plant productivity and higher-than-expected plant overhead expenses,” CEO and Chairman Anthony J. Cavanna said. Trex’s stock is down $1.18, or 5%, to $20.50.
Shares of Melvern, Pa.-based USA Technologies, Inc. (Nasdaq: USAT) are rising $0.82, or 8%, to $10.72, on news the provider of wireless payment services has signed a three-year contract with soft drink giant The Coca-Cola Co. (NYSE: KO). The company will install up to 7,500 of its cashless payment units in Coca-Cola’s vending machines by the end of August, according to a filing with the Securities and Exchange Commission this morning. USA Technologies will receive a total of $3.2 million in payment.
In economic news, the price of oil is hovering in the mid-$63 a barrel range.
