SAN FRANCISCO – Among the companies whose shares are expected to see active trading in Tuesday's session are Affiliated Computer Services, Target Corp., and Capital One Financial Corp.
Affiliated Computer Services (ACS) is expected to report fourth-quarter earnings of 88 cents a share, according to a survey of analysts by Thomson Financial.
American Eagle Outfitters Inc. (AEO) is expected to post earnings of 36 cents a share for the second quarter.
Analog Devices Inc. (ADI) is expected to report third-quarter earnings of 36 cents a share.
BJ's Wholesale Club Inc. (BJ) is expected to post earnings of 41 cents a share for the second quarter.
Dick's Sporting Goods Inc. (DKS) is expected to report second-quarter earnings of 76 cents a share.
Jack Henry & Associates Inc. (JKHY) is expected to post earnings of 32 cents a share for the fourth quarter.
Medtronic Inc. (MDT) is expected to report first-quarter earnings of 62 cents a share.
Saks Inc (SKS) is expected to post a loss of 15 cents a share for the second quarter.
Staples Inc. (SPLS) is expected to report second-quarter earnings of 25 cents a share.
Target (TGT) is expected to post earnings of 80 cents a share for the second quarter.
After Monday's closing bell, Capital One Financial (COF) said it's closing its wholesale mortgage banking unit, GreenPoint Mortgage, immediately. The McLean, Va.-based credit-card giant said it will close GreenPoint's California-based headquarters, along with 31 locations across 19 states. The closures will result in the elimination of about 1,900 jobs, most by the end of the year, the company said. Capital One said it estimates the total after-tax charge associated with the closures will be about $860 million, or $2.15 a share. The company said it now expects 2007 earnings of about $5 a share. Without the charges related to the mortgage banking business, the company said it would have maintained its existing earnings outlook. Analysts polled by Thomson Financial are currently looking for per-share earnings of $7.05 for the year. See related story.
American Software Inc. (AMSWA) increased its quarterly cash dividend 12.5% to 9 cents from 8 cents a share. The dividend is payable on Nov. 30 to shareholders of record as of Nov. 12, the Atlanta-based company said.
Standard & Poor's said Cleveland-Cliffs Inc. (CLF) will replace Ohio Casualty Corp. (OCAS) in the S&P MidCap 400 and Phase Forward Inc. (PFWD) will replace Cleveland-Cliffs in the S&P SmallCap 600, after the close of trading on a date to be announced. Ohio Casualty is being acquired by Liberty Mutual Group in a deal that is still pending final approvals. Zumiez Inc. will replace CT Communications Inc. in the S&P SmallCap 600, after the close of trading on a date to be announced. CT Communications is being acquired by S&P 500 constituent Windstream Corp. (WIN) in a deal that is still pending final approvals, according to Standard & Poor's, a unit of McGraw-Hill Cos.
Fortune Brands (FO) named Bruce Carbonari chief executive officer. Carbonari will replace Norm Wesley on Jan. 1. Fortune, the Lincolnshire, Ill., maker of distilled beverages, golf equipment and home products, said Wesley, 57, will remain chairman of the board. Carbonari, 51 currently president and chief operating officer, was elected a member of the board, effective Tuesday.
Friedman Billings Ramsey Group Inc. (FBR) said it sold about $4.95 billion of agency mortgage-backed securities at a loss of about $57 million. After the sale, Friedman Billings owns an agency and AAA-rated mortgage backed securities portfolio of about $1.2 billion.
KongZhong Corp.'s (KONG) second-quarter net income plunged 99% to $39,000, or less than 1 cent per American depositary share, from $7.6 million, or 21 cents a share, a year earlier, due to a revenue drop and increased operating expenses. Excluding the amortization of intangibles, investments and non-cash stock-based compensation expenses, earnings were $937,000, or 3 cents a share, compared with $8.24 million, or 23 cents a share, a year earlier. The Beijing-based wireless services company's revenue fell 44% to $17 million from $30.1 million in the year-ago period.
Lone Star Fund V L.P.'s LSF5 Accredited Investments LLC unit filed counterclaims to a complaint Accredited Home Lenders Holding Co. (LEND) had filed Aug. 13, alleging that Lone Star breached the obligations of its merger and that it had repudiated the merger agreement. Lone Star, a private equity firm, denied the mortgage banking firm's claim and said Accredited wouldn't be able to force the merger because its only possible contractual remedy is a $12 million reverse break-up fee. Lone Star's counterclaims seek court declaration that Accredited didn't meet conditions necessary to close the current tender offer and breached "numerous" obligations. It seeks to terminate the merger agreement. Accredited wasn't immediately available for comment.
LSI Corp. (LSI) continued its restructuring moves, saying it plans to sell its mobility products unit to Infineon Technologies AG (IFX) for $450 million in cash. The deal also includes a performance-based payment worth up to $50 million payable in the first quarter of 2009. LSI said the business to be sold designs chips and software for cell phones and satellite radio applications. The unit generated $186 million in revenue for the first six months of this year. As part of the deal, LSI said 700 of its employees would join Infineon, one of Europe's biggest chipmakers. Separately, Milpitas, Calif.-based LSI said its board authorized a stock repurchase plan worth up to $500 million.
Oplink Communications Inc.'s (OPLK) fiscal fourth-quarter net income rose 55% to $3 million, or 13 cents a share, from $1.94 million, or 9 cents a share, a year earlier, boosted by a recent acquisition. Excluding stock compensation expenses and acquisition charges, earnings were $5.4 million, or 23 cents a share. The Fremont, Calif., telecommunications company's revenue for the quarter ended June 30 more than doubled to $37.2 million from $16.9 million a year ago.
Resources Connection Inc. (RECN) said Monday that Stephen J. Giusto plans to resign as chief financial officer and a director of the company to pursue other interests. The Irvine, Calif., professional services firm named Anthony Cherbak, its chief operating officer, as acting financial chief while it seeks a replacement for Giusto.
Salesforce.com Inc. (CRM) said it has appointed Graham Smith to become chief financial officer in its fiscal first quarter of 2009. Smith, 47, will replace current CFO Steve Cakebread, who will become the company's president and chief strategy officer, Salesforce.com said in a statement. Salesforce.com, which sells subscriptions to business software over the Internet, said Cakebread will focus on the company's "global strategy with a particular focus on expanding the company's international business."
Smith & Wollensky Restaurant Group Inc. (SWRG) shareholders approved the plan to sell the New York steakhouse chain to Project Grill LLC for $11 a share. See full story.
Solectron Corp. (SLR) signed a multi-year contract with LSI Corp. (LSI) to provide manufacturing services for LSI's Engenio data storage system. Financial terms weren't disclosed. LSI is expected to finish the transfer of operations to Solectron, a Milpitas, Calif., provider of electronic supply chain services, by the first half of 2008.
Target Corp. (TGT) said its August sales at stores open at least one year are tracking in line with its forecast of a 4% to 6% gain. The estimate is based on sales for the first two weeks of the month, plus outlook for the remaining two weeks, the Minneapolis-based company said. The forecast covers the four-week period from Aug. 5 to Sept. 1. The discount retailer expects to report August same-store sales results on Sept. 6.
Tenneco Inc. (TEN) agreed to acquire the mobile emissions business of Combustion Components Associates Inc. for about $16 million. Tenneco, of Lake Forest, Ill., expects the transaction to close in September.