Stocks to Watch, Dec. 13: Best Buy, ADC
SAN FRANCISCO – Among the companies whose shares are expected to see active trade in Tuesday's session are Best Buy Co. Inc., Sabre Holdings Corp., ADC Telecommunications Inc. and Insmed Inc.
ADC Telecommunications (ADCT) is expected to report fiscal fourth-quarter earnings of 18 cent s a share, according to analysts polled by Thomson First Call.
Best Buy Co. Inc. (BBY) is seen posting a third-quarter profit of 30 cents a share.
Martek Biosciences Corp.'s (MATK) fiscal fourth quarter is expected to show a per-share profit of 10 cents.
Plato Learning Inc. (TUTR) is expected to show a profit of 6 cents a share in its fiscal fourth quarter.
After Monday's closing bell, Sabre Holdings Corp. (TSG) said forecast 2006 revenue to rise 15% over last year, toward $3 billion, and for earnings to be ahead of analyst expectations.
American International Group (AIG) it has created a new position at the company devoted to corporate governance as the giant insurer continues to introduce changes in the wake of accounting investigations earlier this year.
Celanese Corp. (CE) raised its 2005 earnings per share outlook to a range of $2.10 to $2.20, from the previous range of $1.95 to $2.05, citing continued strength of its Ibn Sina joint venture in Saudi Arabia, lower personnel costs, and a lower tax rate. The Dallas-based chemicals company also said it expects 2006 earnings in a range of $2.50 to $2.90.
CKE Restaurants Inc. (CKR) reported third-quarter net earnings of $15.8 million, or 23 cents a share, compared with $13.1 million, or 20 cents a share, in the year-ago period. Analysts surveyed by Thomson First Call had expected the restaurant operator to report per-share earnings of 21 cents. CKE said quarterly revenue was $344.1 million, compared with $348.9 million last year, while the consensus estimate was for $342 million. The restaurant company also said November's same-store sales were up 0.6% from last year, with total revenue reaching $93 million.
Cooper Cos. Inc. (COO) reported fiscal fourth-quarter net earnings of $10.8 million, or 22 cents a share, vs. $29.2 million, or 79 cents a share, during the same period a year ago. Pro forma earnings were 83 cents a share for the quarter. There were 48.1 million shares outstanding during the quarter compared with 36.9 million in the year-ago period. The Pleasanton, Calif.-based medical products company posted revenue of $221.4 million vs. $130.8 million. Analysts surveyed by Thomson First Call had forecast fourth-quarter earnings of 85 cents a share on revenue of $220 million.
Diebold Inc. (DBD) said Chairman and Chief Executive Walden O'Dell has resigned for personal reasons, effective immediately. Thomas Swidarski, president and chief operating officer, was named CEO and elected to the board, while John Lauer was named non-executive chairman. The North Canton, Ohio-based company also reaffirmed its fourth-quarter earnings forecast of 50 cents to 60 cents a share.
FoxHollow Technologies Inc. (FOXH) said Chief Executive Robert Thomas plans to retire Jan. 1. John Simpson, FoxHollow's founder and chairman, will serve as interim CEO until a successor is named, the Redwood City, Calif.-based medical products company said. Simpson plans to relinquish his role as chairman but will remain on the board. The company also reaffirmed its fourth-quarter revenue outlook of $40 million to $42 million and its full-year 2005 revenue outlook of $126 million to $128 million.
Great Plains Energy Inc. (GXP) forecast its 2006 core earnings to be in the range of $1.75 to $2 a share. Core earnings exclude the effects of discontinued operations, unusual items and mark-to-market gains and losses on energy contracts. Great Plains is the holding company for Kansas City Power & Light Co.
Hershey Foods Corp. (HSY) reaffirmed its 2005 profit outlook and sales-growth target, and the candy giant also announced it would add $500 million to its stock-buyback program.
H&R Block Inc. (HRB) revised its fiscal second-quarter results to reflect bigger losses in the wake of Hurricanes Katrina and Rita.
Insmed Inc. (INSM) said the Food and Drug Administration has approved Iplex to treat growth failure in children with severe primary IGF-1 deficiency or with growth hormone gene deletion who have developed neutralizing antibodies to growth hormones. The Richmond, Va.-based biopharmaceutical company said Iplex is entitled to seven years of marketing exclusivity for the treatment of primary IGFD.
Intel Corp. (INTC) said it plans to offer $1.4 billion principal amount junior subordinated convertible debentures due 2035. The debentures are to be offered and sold to qualified institutional buyers, the Santa Clara, Calif.-based computer processor giant said. Intel said it plans to use the offering's proceeds for general corporate purposes, and may use a portion to purchase shares of its common stock concurrently with pricing of the debentures.
Kemet Corp. (KEM) said it has agreed to buy Epcos AG's (EPC) tantalum capacitor business for 86.5 million euros ($101.9 million). Greenville, S.C.-based Kemet expects the deal to add to earnings by 6 cents to 10 cents a share. The acquisition, which Kemet expects to finance with available cash, is seen closing in the spring of 2006.
Krispy Kreme Doughnuts Inc. (KKD) said that earnings restatements going back to 2001 will shave significantly more off its bottom line than previously expected. The company also said it is delaying filing a number of reports with the Securities and Exchange Commission as it continues its review of financial statements.
Pernod Ricard (PDRDF) said it has agreed to sell its Dunkin' Brands fast-food chains to a trio of private equity groups in a deal that will bring the French liquor company for almost $2.5 billion in cash.
Rohm and Haas Co. (ROH) said it will cut 400 jobs as part of a restructuring, resulting in pretax charges of $65 million, or 20 cents a share, which will be recorded in the fourth quarter. The Philadelphia-based chemical company said the restructuring initiatives involve the closing or partial shutdown of manufacturing facilities in the United Kingdom and Germany, and will result in annual cost savings of $35 million. The initiatives are expected to result in future charges of $10 million. Rohm and Haas forecast fourth-quarter earnings of 45 cents to 50 cents a share, including the restructuring charges. Analysts polled by Thomson First Call are estimating fourth-quarter earnings of 55 cents a share.
Source Interlink Companies Inc. (SORC) reported third-quarter net earnings of $6.08 million, or 11 cents a share, vs. restated net earnings of $4.38 million, or 18 cents a share, in the year-ago period. There were 53,012 shares outstanding in third quarter compared with 24,924 last year. On a pro forma basis, earnings came in at 17 cents a share vs. 16 cents a share a year ago. Revenue at the Bonita Springs, Fla.-based entertainment product provider rose to $425.9 million from a restated $90.8 million. Analysts polled by Thomson First Call had estimated earnings of 16 cents a share on revenue of $430 million.
Target Corp. (TGT) said it is still on track to report sales gains of 4% to 5% in December at stores open longer than a year. Target said the projection is based on sales in the first two weeks of December combined with the retailer's forecast for the last three weeks of the important holiday season.