Stocks to Watch: AIG, Echostar, Embarq, Johnson & Johnson, Office Depot
I always feel like somebody's watching me.
Minyanville's stocks to watch for Thursday, May 11:
- American International Group (AIG) reported lower-than-expected first-quarter earnings after the insurance giant was weighed down by several one-time costs.
- Borland Software (BORL) said it expects its first-quarter loss to narrow from that of the prior quarter on revenue of around $69 million, above its earlier forecast. The company said it would delay filing its quarterly report with regulators to allow its auditors more time to complete their review, as permitted under an allowed five-day extension. Borland predicted its second-quarter revenue would rise compared to the just-ended period as it continues its efforts to contain costs throughout the year.
- Brinker International (EAT) posted a 2.1% drop in same-store sales for April with three of the restaurant operator's four chains showing declines even as menu prices went up. Companywide, prices were up 3.1% in April.
- DaimlerChrysler AG (DCX) will add a third work shift to its manufacturing operations in Illinois, where the German-American car giant currently builds the 2007 Dodge Caliber. New shift will add about 1,000 new jobs to the 2,650-employee facility.
- Dow Jones & Co. (DJ) said April advertising revenue at The Wall Street Journal, including Weekend Edition, increased 8.3% in April on a 3.8% increase in advertising volume. At Barron's, total advertising revenue rose 6.9% on a 1.7% increase in advertising pages. Dow Jones said international advertising revenue declined 12.1% in April, citing advertising linage declines at the Asian and European editions of The Wall Street Journal.
- Echostar (DISH) reported 1Q EPS $0.33/ FC $0.43 on revenues of $2.29bln/ FC $2.29bln, net adds 225k.
- Embarq (EQWI) will replace Applied Micro Circuits (AMCC) in the S&P 500 index following its spin-off by Sprint Nextel (S).
- JDSU (JDSU) said it plans to offer $375 million of senior convertible notes due 2026 to qualified institutional buyers. JDSU said it plans to use the proceeds of the offering for general corporate purposes, which may include the repayment of existing debt.
- Johnson & Johnson (JNJ) upgraded to Buy from Neutral ($65) on valuation at BofA.
- Navistar (NAV) said in court filing that any work stoppage or strike at DPHIQ would have serious impact on its own and other vehicle mfg operations; would force company to pursue drastic measures to maintain at least some level of production capacity.
- News Corp. (NWSA) said its fiscal second-quarter profit more than doubled on greater revenue and operating income at its cable television networks and a gain on the sale of its investment in Mexican satellite entity Innova.
- Novartis AG (NVS) plans to build a new vaccine plant in the United States that will use the latest technology to produce avian-flu vaccine more quickly for the U.S. market in case of a pandemic.
- Office Depot (ODP) upgraded to Buy from Hold ($60 from $47) on proprietary meetings with mgmt and company's potential for margin expansion at Citi.
- Range Resources (RRC) announced it plans to acquire Stroud Energy for $450m; RRC to consider divesting Austin Chalk properties; raised 2006 production growth view to 15% from 11%.
- Companhia Vale do Rio Doce (RIO) reported 1Q net $1.17bln/ FC $1.36bln, EPS$1.02/ FC $1.26 on revenues of $3.49bln/ FC $3.78bln, shipments 63m tons.
- Urban Outfitters (URBN) reported 1Q EPS $0.12/ FC $0.15 on revenues of $270m/ FC $273.4m, SSS down (3%); company plans to open additional 27-30 stores this year.
- UTStarcom Inc. (UTSI: News, Quote) said Chairman and Chief Executive Hong Lu has resigned effective Dec. 31. Ying Wu, currently CEO of the firm's China operations, will assume the role of CEO from Jan. 1 and independent director Tom Toy will take on the position of chairman. UTStarcom additionally said it began a recruitment search for a chief operating officer.
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