SAN FRANCISCO – Among the companies whose shares are expected to see active trading in Tuesday's session are Coca-Cola Co., Intel Corp., and Merrill Lynch Co.
Coca-Cola (KO) is expected to report second-quarter earnings of 82 cents a share, according to a survey of analysts by Thomson Financial.
CSX Corp. (CSX) is expected to post earnings of 64 cents a share for the second quarter.
Forest Laboratories Inc. (FRX) is expected to report first-quarter earnings of 77 cents a share.
Intel (INTC) is expected to post earnings of 19 cents a share for the second quarter.
Johnson & Johnson (JNJ) is expected to report second-quarter earnings of $1 a share.
Merrill Lynch (MER) is expected to post earnings of $2.02 a share for the second quarter.
SLM Corp. (SLM) is expected to report second-quarter earnings of 73 cents a share.
U.S. Bancorp (USB) is expected to post earnings of 67 cents a share for the second quarter.
Wells Fargo & Co. (WFC) is expected to report second-quarter earnings of 67 cents a share.
Yahoo Inc. (YHOO) is expected to post earnings of 11 cents a share for the second quarter.
After Monday's closing bell, NovaStar Financial (NFI) unveiled a deal with private-equity funds run by insurer Mass Mutual and investment bank Jefferies Group that will provide the struggling subprime mortgage lender with $150 million in new equity.
Third Avenue Management LLC, the largest shareholder of Abitibi-Consolidated Inc. (ABY) (A) , said it opposes the proposed merger of Abitibi and Bowater Inc. and intends to vote its shares against the combination. The New York investment adviser said the merger isn't in the best interest of Abitibi shareholders, and said the combination is "ill-conceived." Third Avenue also said Abitibi is making a larger asset contribution to the deal but will receive a minority of the value of the company.
Swiss eye-care company Alcon Inc. (ACL) said it has named Richard Croarkin as chief financial officer.
Answers Corp. (ANSW) said it has agreed to buy Lexico Publishing Group LLC, owner of Dictionary.com, Thesaurus.com and Reference.com, for $100 million in cash. The deal is expected to close by fall of this year. Answers said Lexico generated net income of $2.8 million in 2006 on revenue of $7 million. New York-based Answers also cut its second-quarter revenue forecast to a range of $2.75 million to $2.8 million from its earlier outlook of $2.8 million to $3.2 million.
Dresser-Rand Group Inc. (DRC) named Mark E. Baldwin executive vice president and chief financial officer effective Aug. 24, succeeding Leonard Anthony, who is resigning to pursue other interests and opportunities, the company said. Baldwin was executive vice president, chief financial officer and treasurer of Veritas DGC Inc.
General Motors Corp. said it has reached a joint-venture agreement with Penske Corp. (PAG) to acquire 50 percent equity of VM Motori SpA, a designer and manufacturer of diesel engines based in Cento, Italy. Financial terms of the deal weren't disclosed. The investment builds on GM's relationship with VM Motori and its relationship with Isuzu Motors Ltd. (ISUZF) , the Detroit automaker said. Bloomfield, Mich.-based Penske is a transportation services company.
Google Inc. (GOOG) is developing technology that could enable cellphone users to search for mobile services and content such as ringtones, according to a report Monday in The Wall Street Journal's online edition. Google has been developing the technology with entertainment and mobile companies for months, the report said. The technology uses the same type of high placement for "sponsored links" currently used in Google's Web search, though it is unclear when any related mobile content search service will launch, the report said.
Hershey Co. (HSY) named Bert Alfonso senior vice president, chief financial officer, effective immediately. The Hershey, Pa., chocolate company said Alfonso joined the company a year ago as vice president, finance and planning, North American commercial group.
IPC Holdings Ltd. (IPCR) expects second-quarter earnings of 20 cents to 40 cents a share, and said results will be hurt by flooding that affected New South Wales, Australia, in early June, and by flooding in parts of northern England, which began in mid-June and continue to affect some areas. Wall Street expected second-quarter earnings of $1.33 a share, according to the average estimate of analysts polled by Thomson Financial.
Isle of Capri Casinos Inc. (ISLE) said it will delay filing financial results for its fiscal fourth quarter and fiscal year ended April 29 as it completes its restatement of past results. The St. Louis-based company said it expects to file Form 10-Qs for its third and fourth quarters and its Form 10-K for fiscal 2007 by the end of July. Isle of Capri said it expects to report a fiscal 2007 loss from continuing operations before income taxes and minority interest of roughly $15.3 million on revenue of $1 billion.
J.B. Hunt Transport Services Inc. (JBHT) reported second-quarter net earnings of $63.9 million, or 45 cents a share, up from $55.3 million, or 36 cents a share, in the year-ago period. The company's results for the second quarter of 2007 included a benefit of $10.3 million, or 7 cents a share, from the settlement of a proposed tax adjustment by the IRS. The Lowell, Ark.-based trucking company said revenue for the three months ended June 30 rose 2 percent to $855.9 million from $838.3 million in the comparable period last year. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 38 cents on revenue of $866 million.
Carl Icahn said he believes his American Real Estate Partners L.P. (ACP) offered a full and fair price for Lear Corp. (LEA) and that he respects the decision of the company's shareholders to reject the $2.9 billion bid. In a statement, Icahn said that he and his affiliates continue to be large stockholders of Lear, the Southfield, Mich.-based manufacturer of automotive seating.
Nautilus Inc.'s (NLS) second-quarter net income fell to $1.11 million, or 4 cents a share, from $1.67 million, or 5 cents a share, a year earlier. Excluding items, the loss for the quarter was $9.5 million, or 30 cents a share, compared with net income of $1.7 million, or 5 cents a share, a year ago. On average, analysts polled by Thomson Financial expected earnings of 4 cents a share. The Vancouver, Wash., fitness company said sales for the three months fell 15 percent to $117.1 million from $137.6 million a year ago.
NPS Pharmaceuticals Inc. (NPSP) sold its royalty entitlement from European sales of Preotact, a parathyroid hormone, to Drug Royalty Corp. for $50 million up front and a milestone payment of $25 million. NPS, a Salt Lake City, Utah, drug company, said Drug Royalty, a privately held healthcare investment company, will receive the milestone payment in early 2010 if it meets certain sales targets. NPS plans to use some or all of the proceeds to buy or repay a portion of its outstanding convertible 3 percent notes due in 2008. The drug company had licensed European marketing rights to Nycomed in 2004, and Nycomed will complete the drug's launch throughout the European Union this year.
PDL BioPHarma Inc. (PDLI) shareholder Third Point LLC reiterated its call for PDL Chief Executive Mark McDade's ouster, alleging McDade has a record of "incompetence, egregiously bad business judgment and serious ethical lapses." In a detailed letter, the New York investment management company criticized McDade for not moving the company to Redwood City, Calif., fostering a "dysfunctional work environment," and missing financial targets, among other things. Third Point, PDL's largest investor, proposed adding three Third Point nominees to the board, slowing the progression of PDL's Ularitide & Nuvion partnerships, as other possible solutions.
Stanley Furniture Co. (STLY) swung to a second-quarter loss of $2.38 million, or 23 cents a share, from a profit of $3.94 million, or 32 cents a share, a year earlier. The company said the loss includes a charge of $4.5 million, or 43 cents a share, for the final termination of its benefit pension plan. Net sales for the Stanleytown, Va., residential wood furniture maker fell 12.6 percent to $67.7 million from $77.5 million for the year-ago period. Stanley Furniture cut its third-quarter earnings forecast to between 16 cents and 20 cents and sales forecast to between $70 million and $74 million.
Universal Forest Products Inc.'s (UFPI) second-quarter net income fell 38 percent to $16.8 million, or 86 cents a share, from $27.3 million, or $1.41 a share, a year earlier, as revenue sank 6.5 percent. The Grand Rapids, Mich., lumber company's revenue dropped to $773.1 million from $826.8 million in the year-ago period. On average, analysts expected per-share earnings of 93 cents on revenue of $791.4 million, according to a poll by Thomson Financial. For 2007 the company expects revenue of $2.38 billion to $2.43 billion, compared with Wall Street's estimate of $2.61 billion.
Usana Health Sciences Inc. (USNA) pre-announced second-quarter net earnings of 66 cents a share on revenue of $109.4 million. Analysts polled by Thomson Financial are expecting, on average, a per-share profit of 63 cents on revenue of $104 million for the three months ended June 30. The Salt Lake City based maker of nutritional and personal care products is scheduled to release its full results tomorrow. Separately, Usana said Grant Thornton LLP resigned as the company's independent registered public accounting firm on July 10. The company said it had an initial disagreement with the auditor over the "appropriate scope of review procedures following unfounded, third-party allegations that appeared in the media in March 2007." Usana said the difference of opinion was resolved to the satisfaction of Grant Thornton and the company.
Washington Group International (WNG) will take a charge of $15 million, or 48 cents a share, related to a joint venture fixed-price highway-construction project in southern California. The Boise, Idaho, engineering and construction company reaffirmed its full-year earnings outlook of $2.60 to $2.92 a share. The highway is expected to be available for use this fall, one year later than originally planned. The estimated cost of the project hasn't increased. The charge is related to the client's decision to assert and withhold liquidated damages from payments due to the joint venture.