Stocks to Watch: Brocade, Jo-Ann Stores, Massey, Medtronic, News Corp
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Stocks to watch for Tuesday, November 21
- Blue Coat Systems (BCSI) reported second-quarter revenue of $40.2 million, up 9.5% from $36.7 million in the same period last year. Analysts had expected revenue of $38 million. The proxy appliances provider did not report earnings due to the ongoing review of its stock-option granting practices.
- Brocade Communications Systems (BRCD) is expected to post fourth-quarter per-share income of 12 cents.
- Crosstex Energy (XTEX) said it has approved a 3-for-1 stock split in the form of a stock dividend. The additional shares will be distributed by Dec. 15 to shareholders of record as of Dec. 1.
- CSK Auto (CAO) said third-quarter revenue on a preliminary basis rose 16% to $473.8 million, due to sales from Murray's Discount Auto Stores, which the company bought in 2005.
- Disney (DIS) forged an agreement for its branded footwear to be made and sold by Payless, in Disney's latest direct-to-retail deal.
- DryShips (DRYS) said it swung to a third-quarter net loss of $9.35 million, or 28 cents a share, as the company recorded charges of 79 cents per share on items such as a forward freight agreement loss. Excluding the items, per-share income for the quarter was 50 cents.
- Dycom Industries (DY) said first-quarter net income fell, as interest expenses gained, to $9.56 million, or 24 cents a share, from $10.7 million, or 23 cents a share, during the same period in the prior year. The contracting services company said quarterly contract revenue rose to $278.2 million from $260.9 million in the prior year, while analysts had expected $268 million.
- Fifth Third Bancorp (FITB) said an effort to cut its exposure to interest rates will cost the lender roughly $325 million, after taxes.
- Fluor (FLR) said its lawyers plan to appeal a Texas jury decision that awarded Conex International $98.8 million in damages related to a 2001 construction project.
- Focus Media Holding (FMCN) reported third-quarter net earnings of $27 million, compared with $7.13 million in the same period last year, as sales jumped.
- Honeywell's (HON) aerospace unit has received regulatory approval for the first radar on commercial jetliners designed to help avoid unexpected turbulence.
- Jo-Ann Stores (JAS) said it swung to third-quarter net income, as sales costs fell, of $100,000, or breakeven on a per-share basis. During the same period in the prior year, the net loss was $4.1 million, or 18 cents a share.
- Lowe's (LOW) net rose 11% but the home-improvement chain cut its outlook due to the housing slump.
- Massey Energy (MEE) said it expects to add 2 million tons of production in 2007. The coal company added that potential selective mine closures may offset the increase.
- Medtronic's (MDT) profit fell, hurt by higher costs, but its revenue rose 11% on solid results from its heart devices.
- The London Stock Exchange rejected an offer from Nasdaq (NDAQ) that values Europe's largest stock market at $5.1 billion, as the market pushed the LSE shares higher on the assumption of a better bid in the future.
- News Corp (NWS) canceled publication of the O.J. Simpson book and television special "If I Did It." Rupert Murdoch apologized for the project, saying it was "ill-considered."
- Higher margins and brisk same-store sales helped Nordstrom (JWN) push its third-quarter profit up more than 26%.
- Nike (NKE) cut ties with one of its biggest suppliers of soccer goods and cautioned that the unusual move will likely result in a shortage of hand-stitched soccer balls.
- Phillips-Van Heusen (PVH) reported third-quarter net earnings of $50.8 million, compared with $40.3 million in the same period last year, as sales rose and the company's gross margin improved. The apparel company said revenue rose 6.6% to $568.3 million.
- Sapient (SAPE) said its board audit committee has found irregularities on the pricing of certain stock-option grants awarded from 1996 through 2001, and that certain current management members received some options that had prices corresponding to dates earlier than their measurement dates.
- Steel Dynamics (STLD) said it has increased its stock buyback authorization by 2.5 million shares to 7 million shares.
- Trident Microsystems (TRID) said its chairman and chief executive has resigned, and that the company plans to book a charge of up to $50 million for misdating stock options.
- United Technologies (UTX) Pratt & Whitney unit said it has signed a contract with India-based Kingfisher Airlines to provide engines for the airline's new fleet of Airbus A330 aircraft.
- Asian trading closed with the Hang Seng +0.28%, Sensex +1.39%, Taiwan +0.66%, Shanghai +1.00% and Nikkei +0.05%.
- A check of the European bourses finds the CAC +0.55%, DAX +0.32%, FTSE +0.35% and Swiss Mkt +0.62%.
- Crude oil is trading +0.53 to 59.33 while gold is +3.4 to 625.5.
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