Stocks to Watch, Sept. 17, 2007: Best Buy, E-Trade
SAN FRANCISCO – Among the companies whose shares are expected to see active trade in Tuesday's session are Best Buy Co., E-Trade Financial Corp. and Lehman Bros. Holdings Inc.
AutoZone Inc. (AZO) is expected to report earnings of $3.25 a share for its fiscal fourth quarter, according to a poll of analysts conducted by Thomson Financial.
Bakers Footwear Group Inc. (BKRS) is expected to post a per-share loss of 34 cents for its second quarter.
Best Buy Co. (BBY) is expected to report earnings of 44 cents a share for the second quarter.
CBRL Group (CBRL) is forecast to report a fiscal fourth-quarter profit of $1.02 a share.
Darden Restaurants Inc. (DRI) is expected to report earnings of 70 cents a share for its fiscal first quarter.
Analysts expect Kroger Co. (KR) to post a second-quarter profit of 34 cents a share.
Lehman Brothers Holdings Inc. (LEH) is expected to report fiscal third-quarter earnings of $1.47 a share.
After Monday's closing bell, discount broker E-Trade (ETFC) said it planned to exit the wholesale-mortgage business. It also lowered its profit expectations by more than 25% for the year. See full story.
Adobe Systems Inc. (ADBE) said Monday evening that its third-quarter profit more than doubled compared with the same period a year earlier, bolstered by sales of its flagship Creative Suite 3 product. See full story.
Dell (DELL) said it has received a letter saying the company isn't in compliance with Nasdaq listing requirements. Dell said it expected to receive the Nasdaq notification that refers to delays in the company's filing of its quarterly reports for two periods in 2006 and one in 2007. Dell said it expects to file all of its past reports before or on the Nasdaq deadline of Nov. 12.
New York Times Co. (NYT) said that content previously available through its TimesSelect subscription service on NYTimes.com will be offered for free, starting Wednesday. The subscription-based model will be replaced by one based on advertising.
NovaStar Financial (NFI) said it will not proceed with plans to declare a common stock dividend, causing its status as a real estate investment trust to be terminated, retroactive to Jan. 1, 2006.
NovaStar said that it cannot create enough value through the issuance of preferred securities to satisfy the Real Estate Investment Trust distribution requirement because of a substantial decline in its market capitalization during recent months, combined with its inability to consummate a planned rights offering and demands on the company's liquidity.
UTStarcom (UTSI) said an internal probe has found that a portion of its revenue previously recorded in one of its five regions in China was recognized earlier than it should have been, and that the financial statements for the affected periods should be restated. The company said it's analyzing the impact on revenue recognition in the Western region of its China operations during the seven-year period ended Dec. 31, 2006, and that it doesn't expect the restatement to have any impact on its cash balances.
Yahoo Inc. (YHOO) has agreed to buy Zimbra Inc., an e-mail service provider, for about $350 million. The deal is expected to close in the fourth quarter.