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Stocks to Watch: Apple, GM, IBM, Starbucks, Time Warner, Tyco

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Down the stretch

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Stocks to Watch for Friday, August 4

  • Apple (AAPL) will likely restate past results after discovering more irregularities as part of an internal probe of stock-option grants.
  • Activision (ATVI) said its quarterly loss widened and sales dropped 22% as the video-game industry continues to suffer a slump on an ongoing shift to next-generation gaming consoles.
  • Micro Circuits (AMCC) said its fiscal first-quarter sales rose to $69.7 million, up from $64.7 million in last year's period. The company didn't provide net income data due its internal review of its stock-option accounting.
  • Chiquita Brands International (CQB) said second-quarter net income fell as fuel costs rose and regulatory changes in the European banana market resulted in lower local pricing and increased tariffs. The banana company said quarterly net profit hit $22.9 million, or 54 cents a share, compared with $63.6 million, or $1.36 a share, during the same period in the prior year.
  • Crocs (CROX) said second-quarter net profit rose to $15.7 million, compared with $3.35 million during the same period in the prior year. Quarterly revenue rose to $85.6 million from $25.8 million in the prior year.
  • Crown Castle International (CCI) said the Securities and Exchange Commission is conducting an informal inquiry into matters related to whether grants of stock options have been backdated. The company also said its second-quarter net loss narrowed from the same period in the prior year, while revenue reached $193.8 million, compared with $168.2 million in the prior year.
  • CV Therapeutics (CVTX) posted a net loss of $73.1 million, or $1.59 a share, for the second-quarter, compared with a loss of $51.6 million, or $1.43 a share, the year before. Revenue rose to $6.85 million from $5.75 million.
  • Denny's (DENN) said same-store sales for company-owned Denny's restaurants rose 3% in July. The Spartanburg, N.C.-based restaurant chain said the guest check average rose 4.2%, while guest counts fell 1.1%.
  • Dominion Homes (DHOM) bell said it swung to a second-quarter loss as revenue declined on fewer closings and a decline in gross profit margin. Dominion said quarterly revenue fell to $75.8 million from $105.2 million in the prior year.
  • Sales of its animated feature "Madagascar" helped DreamWorks Animation SKG (DWA) swing to a gain for the second quarter and beat analysts' earnings forecasts.
  • Dynamic Materials (BOOM) reported second-quarter net income of $5 million, or 41 cents a share, compared with $2.1 million, or 18 cents a share, a year ago. Revenue at the metal products company was $27.8 million, up from $18.4 million last year.
  • Gateway (GTW) reported a fiscal second-quarter loss of $7.7 million, even while revenue rose, as the No. 3 U.S. personal-computer company saw a complete turnaround from its year-ago profit.
  • General Motors (GM) said it will open a second factory in India, teaming up with the Maharashtra state government for a $279.3 million plant.
  • HCC Insurance Holdings (HCC) said it has agreed to acquire Allianz Health for $140 million in cash and reported a 38% jump in second-quarter net income.
  • IBM agreed to acquire MRO Software for about $740 million, continuing a string of software acquisitions. MRO's products help companies manage assets such as equipment and spare parts.
  • Icos (ICOS) reported second-quarter net earnings of $6.8 million, or 9 cents a share, for the three-month period ended June 30. In the same quarter last year, the Bothell, Wash., biotechnology company lost $22.6 million, or 35 cents a share.
  • International Rectifier (IRF) said fourth-quarter net income hit $31 million, or 43 cents a share, compared with $24.7 million, or 35 cents a share, during the same period in the prior year.
  • Invitrogen (IVGN) posted a higher second-quarter profit but revenue that missed Wall Street's expectations.
  • J.P. Morgan Chase (JPM) said it restated its 2005 year-end financial statement at the request of securities regulators over the way it had classified three years' worth of mortgage investments.
  • KKR, Silver Lake and AlpInvest are paying $4.3 billion for 80.1% of Philips Electronics' chip business.
  • Leap Wireless International (LEAP) reported second-quarter net earnings of $7.5 million, or 12 cents a share, compared with $1.1 million, or 2 cents a share, in the same period last year. Quarterly revenue rose 18% to $267.9 million vs. $226.8 million.
  • Longs Drug Stores (LDG) said July retail drug store same-store sales rose 2.4% compared with last year.
  • Navistar International (NAV) said in four weeks it may announce layoffs at its Chatham, Ont., heavy truck assembly plant. The job cuts would be a result of an expected market decline because of the truck industry currently buying ahead of the stricter emissions regulations beginning in January.
  • Openwave Systems (OPWV) reported a fourth-quarter net loss of $4.67 million, or 5 cents a share, compared with a net loss of $62.3 million, or 91 cents a share, in the same period last year.
  • Parker Hannifin (PH) said total orders rose 14% in July compared with the same month last year.
  • PDL BioPharma (PDLI) posted a wider second-quarter loss due to increased costs, and said its terlipressin treatment failed to show statistical significance in a clinical trial.
  • Ryerson (RYI) reported second-quarter net earnings of $22.2 million, or 76 cents a share, compared with $25.7 million, or $1.12 a share, in the same period last year. The Chicago-based metal company said quarterly revenue fell 0.8% to $1.51 billion vs. $1.52 billion due to the loss of two major customers and the sale of its oil and gas business in the first quarter of 2006.
  • Starbucks (SBUX) blamed long Frappuccino lines for slowing sales, but Wall Street is concerned the coffee chain for the first time may be vulnerable to cutbacks in consumer spending.
  • Time Warner's (TWX) AOL will lay off about a quarter of its work force, or as many as 5,000 jobs, as part of a strategy shift and plan to cut costs by $1 billion.
  • Travel services provider Sabre Holdings (TSG) reported a 23% drop in second-quarter profit, hit by a tax reversal and higher operating costs. .
  • True Religion Apparel (TRLG) earned $4.9 million, or 21 cents share in its second quarter, up from $2.4 million, or 18 cents, in the year-ago period. Sales at the clothing maker stood at $30.7 million, up from $22 million.
  • Tyco's net income fell 27% amid sluggish results in three of its four business units, as the company moves toward a breakup early next year.
  • United Airlines, a unit of UAL (UAUA) , said traffic in July increased 3.4% to 11.07 billion revenue passenger miles. Load factor, or the percentage of a plane filled with passengers, rose 1.3 percentage points to 87.7%, while net capacity rose 1.9% to 12.62 billion available seat miles.
  • Univision Communications (UVN) said its second-quarter profit was $107.4 million, or 32 cents a share, compared with a profit of $36.1 million, or 10 cents a share -- including the writedown of a loss in the fair value of an investment -- in the prior year. Revenue rose to $634 million from $508 million.
  • Visteon (VC) shares jumped on reports that the auto parts maker has hired two investment banks to explore the sale of the company.
  • WebMD Health (WBMD) said the second-quarter net loss hit $1.16 million, or 2 cents a share, compared with a net loss of $1.55 million, or 3 cents a share, during the same period in the prior year. Quarterly revenue rose to $56.6 million from $41 million in the prior year.


Market Update:

  • Asian trading closed with the Hang Seng -0.94%, Nikkei +0.19%, Shanghai -1.93%, Taiwan -0.30%, Jakarta +0.70% and Sensex -0.52%.
  • A quick look across the pond finds the CAC +0.78%, DAX +0.93%, FTSE +0.38%, Swiss mkt +0.58%.
  • Crude oil is trading +0.13 to 75.59 while gold is -0.4 to 656.6.
No positions in stocks mentioned.

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