Stocks to Watch, Aug. 23: Barnes & Noble, Gap and Intuit

SAN FRANCISCO – Among the companies whose shares are expected to see active trading in Thursday's session are Barnes & Noble Inc., Gap Inc., and Intuit Inc.

Aeropostale Inc. (ARO) is expected to report second-quarter earnings of 18 cents a share, according to a survey of analysts by Thomson Financial.

Barnes & Noble (BKS) is expected to post earnings of 12 cents a share for the second quarter.

Bon-Ton Stores Inc. (BONT) is expected to report a second-quarter loss of 79 cents a share.

Brocade Communications Systems Inc. (BRCD) is expected to post earnings of 11 cents a share for the third quarter.

Gap (GPS) is expected to report second-quarter earnings of 19 cents a share.

Hormel Foods Corp. (HRL) is expected to post earnings of 41 cents a share for the third quarter.

Patterson Cos. (PDCO) is expected to report first-quarter earnings of 35 cents a share.

Smithfield Foods Inc. (SFD) is expected to post earnings of 42 cents a share for the first quarter.

Stein Mart Inc. (SMRT) is expected to report second-quarter earnings of 5 cents a share.

Wet Seal Inc. (WTSLA) is expected to post earnings of 6 cents a share for the second quarter.

After Wednesday's closing bell, Intuit (INTU) said its fourth-quarter loss narrowed compared to the same period a year earlier, and it announced the appointment of a new chief executive effective in January.

Countrywide Financial Corp. (CFC) confirmed that it received a $2 billion strategic equity investment from Bank of America Corp. (BAC) . The transaction was completed and funded Wednesday. Bank of America invested the $2 billion in the form of a nonvoting 7.25 percent APY convertible preferred security, which can be converted into common stock at $18 a share with trading restrictions for 18 months after conversion.

Watch List

Abercrombie & Fitch Co. (ANF) reported second-quarter net earnings of $81.3 million, or 88 cents a share, up 24 percent from $65.7 million, or 72 cents a share, in the year-ago period. The New Albany, Ohio-based teen retailer said revenue rose to $804.5 million from $658.7 million. Analysts polled by Thomson Financial had forecast, on average, a per-share profit of 87 cents on revenue of $795 million. Same-store sales for the quarter fell 2 percent, the company said. Additionally, Abercrombie said it expects per-share earnings for the second half of fiscal 2007 to range from $3.63 to $3.67. For the full-year fiscal 2007, the company said it sees earnings of $5.16 to $5.20 a share. The company also said it plans total capital expenditures for the year of $395 million and $405 million.

AFC Enterprises Inc. (AFCE) , the Atlanta-based franchisor and operator of Popeye's Chicken & Biscuits, late Wednesday reported second-quarter net earnings of $6.6 million, or 22 cents a share, up 29 percent from $5.1 million, or 17 cents a share, last year. Revenue in the three months ended July 15 rose to $38.3 million from $34.4 million last year. Total domestic same-store sales fell 2.1 percent, while global same-store sales decreased 1.7 percent. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 17 cents on revenue of $39 million.

Moody's Investors Service said it has placed all of the ratings of Centex Corp. (CTX) , Lennar Corp. (LEN) and Pulte Homes Inc. (PHM) under review for possible downgrade. The agency said the review was prompted by the "materially weaker operating environment facing homebuilders, the dramatic change in the credit environment surrounding the industry versus only a few weeks ago, and the possibility of a substantive spill over effect on the industry if the blowback from the structured products markets continues unabated."

Cyberonics Inc. (CYBX) will cut its employee headcount by about 12 percent to reduce operation costs. The Houston company said it will book about $2.5 million in staff-reduction costs in the fiscal second quarter.

Foot Locker Inc. (FL) said it swung to a second-quarter net loss of $18 million, or 12 cents a share, from net earnings of $14 million, or 9 cents a share, in the year-ago period. The New York-based athletic apparel and footwear chain said revenue for the three months ended Aug. 4 fell 1.5 percent to $1.28 billion from $1.3 billion. Second quarter comparable-store sales decreased 7.3 percent. Analysts polled by Thomson Financial had forecast, on average, a per-share loss of 18 cents on revenue of $1.25 billion.

Gymboree Corp.'s (GYMB) second-quarter net income increased to $5.8 million, or 19 cents a share, from $544,000, or 2 cents a share, a year earlier. The San Francisco designer of children's clothing's revenue increased to $182.4 million from $152.1 million. Analysts polled by Thomson Financial expected, on average, earnings of 15 cents a share on revenue of $180 million. Gymboree expects per-share earnings of 84 cents to 87 cents for the third quarter and $2.50 to $2.53 for 2007. Analysts are looking for earnings of 88 cents a share on revenue of $239 million for the third quarter and $2.55 a share on revenue of $895 million for the year. Shares closed trading at $41.50, up $1.89, or 4.8 percent.

Hot Topic Inc.'s (HOTT) second-quarter loss widened to $1.73 million, or 4 cents a share, from a year-earlier loss of $905,000, or 2 cents a share. The City of Industry, Calif., teen retailer said revenue for the quarter ended Aug. 4 increased to $161.7 million from $160.3 million, while same-store sales fell 5.8 percent. Analysts surveyed by Thomson Financial expected, on average, a loss of 3 cents a share and revenue of $160 million. Hot Topic expects third-quarter earnings of 13 cents to 16 cents a share on a same-store sales decline in the low-single digits. For the fourth quarter, Hot Topic expects earnings of 29 cents to 33 cents a share with a low-single digit decline in same-store sales.

Industrial Distribution Group Inc. (IDGR) said its board committee has hired Robert W. Baird & Co. to serve as its financial adviser as the company reviews its strategic alternatives. The Atlanta-based supplier of maintenance, repair, operating, and production products and services announced the review on July 30.

JDS Uniphase (JDSU) reported a fiscal fourth-quarter net loss of $17.9 million, or 8 cents a share, compared with a net loss of $45.8 million, or 22 cents a share, in the year-ago period. Pro forma earnings were $15 million, or 7 cents a share, the company said. Adjusted earnings before interest, taxes, depreciation and amortization were $11.7 million. The Milpitas, Calif.-based maker of technology networking equipment said revenue rose to $350.7 million from $318.2 million in the comparable period last year. Analysts polled by Thomson Financial were expecting, on average, revenue of $338 million. Additionally, JDS Uniphase said it expects first-quarter pro forma net revenue of $345 million to $360 million.

Limited Brands Inc. (LTD) reported second-quarter net earnings of $264.4 million, or 67 cents a share, up from $113.1 million, or 28 cents a share, in the year-ago period. Excluding certain one-time items, earnings were $80.6 million, or 20 cents a share. The Columbus, Ohio-based apparel retailer said revenue rose to $2.62 billion from $2.45 billion. Analysts polled by Thomson Financial had forecast, on average, a per-share profit of 19 cents on revenue of $2.65 billion. Same-store sales rose 2 percent for the quarter, the company said. Additionally, Limited said it has authorized an additional $250 million share buyback program. The company also said it is "comfortable" with current analysts' per-share earnings estimates for the third and fourth quarters of 4 cents and $1.18, respectively.

MAF Bancorp Inc.'s (MAFB) stockholders approved the company's merger agreement with National City Corp. (NCC) . Under the agreement, stockholders of MAF Bancorp, the Clarendon Hills, Ill., holding company for Mid America Bank, will receive shares of National City common stock in a tax-free exchange

MeadWestvaco Corp. (MWV) said it will discontinue operations at its Laurel specialty papers plant in South Lee, Mass, eliminating 70 jobs. The Richmond, Va.-based packaging company said the mill is expected to close by Dec. 31, and that some production will be transferred to the Willow mill in South Lee, and to the Cedar mill in Potsdam, N.Y.

Men's Wearhouse Inc.'s (MW) second-quarter net income rose 52 percent to $54.2 million, or $1 a share, from $35.6 million, or 65 cents a share, a year earlier. Excluding acquisition costs, After Hours which the company acquired in April contributed 24 cents to the company's per-share earnings. Total sales for the Houston off-price men's retailer rose 24 percent to $569.3 million for the period ended Aug. 4 from $460.6 million in the year-ago period, boosted by strong tuxedo sales. Overall comparable store sales rose 3.7 percent, while U.S. comparable store sales rose 1.1 percent.

National Oilwell Varco Inc.'s (NOV) board approved a 2-for-1 stock split to be effected in the form of a stock dividend. The Houston maker of oil and gas drilling systems said the distribution will be made Sept. 28 to shareholders of record Sept. 7. In after-hours trading, National Oilwell shares were recently at $113.48 after trading as high as $115.01.

Northfield Laboratories Inc. (NFLD) said it has been notified that the staff of the Securities and Exchange Commission has completed its investigation of the company and does not plan to recommend enforcement action. The Evanston, Ill.-based company announced in March of 2006 that SEC was requesting information relating to the clinical development of the company's PolyHeme product.

OptionsXpress Holdings Inc. (OXPS) said that David Kalt plans to step down as chief executive officer, effective Sept. 30. The Chicago-based equity options and futures trading firm said it has named President David Fisher to succeed Kalt as CEO. Fisher will also assume Kalt's seat on the board, the company said.

Phillips-Van Heusen Corp.'s (PVH) fiscal second-quarter net income rose 35 percent to $39.1 million, or 68 cents a share, from $29 million, or 33 cents a share, a year earlier. Results from the most recent period, ended Aug. 5, include $2.2 million of pretax startup costs from the company's Timberland wholesale sportswear business and Calvin Klein specialty stores. The New York-based clothing manufacturer's revenue increased 20 percent to $552.4 million from $458.8 million in the year-ago period. On average, analysts polled by Thomson Financial expected per-share earnings of 62 cents on revenue of $543 million. Analyst estimates include start-up costs. Phillips-Van Heusen said it expects third-quarter per-share earnings of $1.02 to $1.03 and revenue of $705 million.

Rambus Inc. (RMBS) confirmed that the European Commission issued a Statement of Objections against the company alleging violations of European Union competition law. Rambus said the European Commission's statement represents the agency's preliminary view in its antitrust investigation of the company. Rambus said it will respond to the objections "in due course," adding that it believes the objections are largely the same as those previously examined by a number of U.S. courts, the Federal Trade Commission, and currently before the U.S. Court of Appeals for the District of Columbia Circuit.

Synopsys Inc. (SNPS) reported third-quarter net earnings of $24.9 million, or 17 cents a share, up from $7.55 million, or 5 cents a share, in the year-ago period. Excluding stock-based compensation and other items the company posted a profit in the quarter ended July 31 of $47.7 million, or 32 cents a share, versus $30.2 million, or 21 cents a share, last year. The Mountain View, Calif.-based software company said revenue rose 9.7 percent to $304.1 million from $277.2 million.

Verigy Ltd.'s (VRGY) fiscal third-quarter net income more than doubled to $30 million, or 50 cents a share, from $13 million, or 23 cents a share, a year earlier on a decline in operating expenses. Excluding charges related to its Agilent Technologies spinoff, earnings were $32 million, or 52 cents a share. The Cupertino, Calif., semiconductor test company's revenue for the quarter ended July 31 fell 4.7 percent to $204 million from $214 million a year ago. Analysts polled by Thomson Financial, on average, predicted third-quarter earnings of 49 cents a share and revenue of $200.9 million.

Zumiez Inc.'s (ZUMZ) second-quarter net income grew to $3.12 million, or 11 cents a share, from a year-earlier profit of $1.64 million, or 6 cents a share. The Everett, Wash., specialty apparel retailer's revenue grew 47 percent for the period ended Aug. 4, to nearly $82 million, from $55.8 million a year earlier, while same-store sales increased 11.6 percent. Wall Street expected second-quarter earnings of 8 cents a share, on revenue of $80 million, according to the average estimate of analysts polled by Thomson Financial. The company expects full-year earnings of 97 cents to 99 cents a share, up from its previous estimate of 94 cents to 96 cents a share. Analysts expect full-year earnings of 98 cents a share, on revenue of $390.3 million.