SAN FRANCISCO – Among the companies whose shares are expected to see active trading in Friday's session are Dell Inc., Hewlett-Packard Co., and Whole Foods Market Inc.
Concurrent Computer Corp. (CCUR) is expected to report a fourth-quarter loss of 2 cents a share, according to a survey of analyst by Thomson Financial.
J.M. Smucker Co. (SJM) is expected to post earnings of 67 cents a share for the first quarter.
After Thursday's closing bell, Hewlett-Packard (HPQ) said that earnings for the third-fiscal quarter jumped 29 percent, thanks to strength in PC sales along with a decline in prices for components such as memory chips.
Also, Dell (DELL) said it will restate more than four years of financial results after "errors and irregularities" were discovered during a review of past accounting and reporting practices. See full story.
American Financial Group Inc. (AFG) said it has approved the buyback of up to an additional 5 million shares of its outstanding common stock. The authorization is in addition to the 1 million shares remaining under the previous program from March 2004, the Cincinnati-based insurer said.
Autodesk Inc. (ADSK) reported second-quarter net earnings of $91.6 million, or 38 cents a share, up 6 percent from $86.8 million, or 36 cents a share, during the year-earlier period. Pro forma earnings were $108 million, or 44 cents a share, compared with $96 million, or 39 cents a share, last year. The San Rafael, Calif.-based data and design software maker said revenue for the three months ended July 31 rose to $525.9 million from $449.6 million.
BEA Systems Inc.'s (BEAS) revenue rose 7 percent to $364.6 million from $339.6 million in the year-ago period, boosted by revenue from its AquaLogic products. On average, analysts polled by Thomson Financial expected revenue of $348 million. The San Jose, Calif., developer of transaction and message management software said it isn't reporting GAAP or non-GAAP earnings for the period ended July 31 because of an internal review of its historical stock options grants.
Belden Inc. (BDC) said it has authorized a $100 million share repurchase program. The St. Louis-based maker of signal transmission products had 45.1 million shares outstanding as of July 30.
Boston Scientific Corp. (BSX) said it will explore the sale of its cardiac surgery and vascular surgery businesses. Boston Scientific acquired the cardiac surgery business in April 2006 as part of its Guidant acquisition. The unit employs roughly 450 people and had 2006 revenue of $189 million. Boston Scientific established the vascular surgery business with its 1995 acquisition of Meadox Medicals. The business had 2006 revenue of $86 million and 250 employees.
Darden Restaurants Inc. (DRI) said it has agreed to acquire Rare Hospitality International Inc. (RARE) for $38.15 a share in cash, or roughly $1.4 billion, in a tender offer. The bid represents a 38.7 percent premium over Rare Hospitality's closing stock price on Thursday. With annual sales of $1 billion, Atlanta-based Rare Hospitality operates and franchises 317 restaurants, including 287 LongHorn Steakhouse restaurants and 28 Capital Grille restaurants. Orlando-based Darden expects to launch the tender offer on Aug. 31 and for the offer to close in October.
A Deerfield Triarc Capital Corp. (DFR) board committee informed Triarc Cos. (TRY) that it hasn't completed the financing necessary to buy Deerfield & Co. LLC. Deerfield Triarc, a Chicago-based real estate investment trust, said the financing problems were a result of the current credit market instability.
Elizabeth Arden Inc. (RDEN) reported that it swung to a fiscal fourth-quarter net profit of $9.64 million, or 33 cents a share, from a year-ago net loss of $1.9 million, or 7 cents a share. The New York-based cosmetics company said revenue increased 27.8 percent to $242.7 million for the three months ended June 30, up from $189.9 million in the comparable period of the prior year.
Endo Pharmaceuticals Holdings Inc. (ENDP) unit Endo Pharmaceuticals Inc. and Vernalis Plc (VER) said the Food and Drug Administration requested an extension of the Aug. 19 review date for the companies' supplemental new drug application for Frova. The companies said the Frova 2.5-milligram tablets are being reviewed as a short-term prevention of menstrual migraine. Until the companies receive further information from the FDA, they said they will continue with their existing commercial plan. The FDA hasn't currently requested any additional information or clinical trial data, the companies said.
E-Trade Financial Corp. (ETFC) disclosed more information on its mortgage holdings late Thursday to try to calm investor concerns. The discount broker also said that it's so far seen no material changes in the availability, pricing or margin on its wholesale funding sources, including repurchase agreements. "Management maintains that it does not believe that the current market capitalization accurately reflects the financial strength and performance of the business," E-Trade said in a statement. The company's $15.7 billion first-lien mortgage portfolio contains home loans with high credit scores and low loan-to-value ratios, plus private mortgage insurance, E-Trade explained. The company noted that $9.2 billion, or 74 percent, of its home equity portfolio is tied to loan to borrowers with credit scores of at least 700.
Hartmarx Corp. (HMX) bought Los Angeles-based Monarchy LLC, which designs and markets upscale men's and women's sportswear, for $12 million cash at closing plus the assumption of certain liabilities. Additional payments would be made annually over a seven-year period, starting in fiscal 2008, if specified earnings targets are achieved. Hartmarx, a Chicago apparel company, said it expects the acquisition to contribute $25 million to $30 million in revenue and add 3 cents to 5 cents a share to earnings in the fiscal year ending Nov. 30, 2008.
Strong seasonal sales lifted department store chain Kohl's Corp. (KSS) to a near 16 percent jump in second-quarter earnings, and the company raised the bottom end of its full-year forecast range as a result.
Standard & Poor's said S&P Midcap 400 constituent Leucadia National Corp. (LUK) will replace KeySpan Corp. (KSE) in the S&P 500 and Life Time Fitness Inc. (LTM) will take Leucadia's place in the S&P Midcap 400. The changes will take effect after the close of trading Aug. 24, by which point KeySpan is to expected to be bought by National Grid Plc (NGG) . Standard & Poor's also clarified its definition of a U.S. company, stating that it should be incorporated in the United States, financial reporting should be in U.S. dollars and shouldn't be considered a foreign entity by the Securities and Exchange Commission.
Nordstrom Inc. (JWN) said its second-quarter profit rose, helped by strength in designer clothing and accessories, and raised its forecast for the year.
Parker Hannifin Corp. (PH) said its board approved a 3-for-2 stock split and a $500 million accelerated share repurchase. The Cleveland-based maker of motion-control products said the split will be effected in the form of a dividend, with one additional share issued Oct. 1 for each two shares of common stock held by shareholders of record Sept. 17. Parker's common stock will begin trading at the split adjusted price Oct. 2. Parker said it will begin its share repurchase plan by buying back shares from Morgan Stanley, then Morgan Stanley (MS) will buy an equivalent number of shares on the open market. The company also raised its quarterly dividend by 21 percent to 31.5 cents a share on a pre-split basis.
Red Robin Gourmet Burgers Inc.'s (RRGB) second-quarter net income fell 32 percent to $4.93 million, or 29 cents a share, from $7.19 million, or 43 cents a share, a year earlier. The latest quarter included charges of 7 cents a share for the acquisition of 15 restaurants, 1 cent a share for integration of the acquisition and 7 cents a share for a legal settlement. The Greenwood Village, Colo., casual dining company's revenue increased 31 percent to $178.6 million from $135.9 million a year ago.
Zygo Corp.'s (ZIGO) fiscal fourth-quarter net earnings declined to $3.81 million, or 20 cents a share, from a year-earlier profit of $4.515 million, or 24 cents a share. The Middlefield, Conn., optics and manufacturing services company's net sales declined to $46.5 million for the period ended June 30, from $47.2 million a year earlier. Wall Street expected fourth-quarter earnings of 22 cents a share, on sales of $48.1 million, according to the average estimates of analysts polled by Thomson Financial. The company expects fiscal 2008 revenue equal to 2007's $148.1 million, with orders and shipments strengthening in the second half of the year. Zygo also said its board authorized the repurchase of up to $25 million of stock.
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