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Stocks To Watch: Alcan, Google, Motorola, Sallie Mae, Yum Brands


Today's top stories and some stocks with potential to move...


Stocks to watch for Thursday, July 12:

  • CalAmp (CAMP) said it now expects to post a first-quarter charge of $16 million, or 41 cents a share net of tax, due to a previously disclosed product performance issue with a Direct Broadcast Satellite customer. As a result, the provider of wireless communications products said it now expects a net loss in the range of 47 cents to 49 cents a share for the quarter. CalAmp also said it now sees revenue of $47.4 million, which exceeds the previous outlook of $44 million to $47 million. In May, the company said it expected a first-quarter net loss of 6 cents to 9 cents a share. The forecasted loss has caused a default in connection to the financial covenants under the company's bank credit agreement, CalAmp said.
  • Chaparral Steel's (CHAP) fiscal fourth-quarter net income rose 43% to $80.2 million, or $1.65 cents a share, from $56.1 million, or $1.16 cents a share, a year earlier. The steel company said sales for the quarter ended May 31 increased 21% to $488.7 million from $405.5 million, citing strong demand for new industrial production capacity and a solid nonresidential construction market. Analysts polled by Thomson Financial expect, on average, earnings of $1.40 a share and sales of $460 million.
  • Genentech (DNA) said its second-quarter profit rose 41% over the same quarter last year, and the biotechnology giant lifted its profit forecast for the full-year period.
  • General Electric (GE) said it has abandoned plans to buy a preventive healthcare business from Abbott Laboratories (ABT) after the two companies failed to work out details needed to clinch the $8.13 billion deal.
  • Google (GOOG) plans to offer mobile map services in China before the end of the year to narrow the gap with (BIDU).
  • Intervoice's (INTV) board approved the repurchase of up to 2 million common shares over the next two years. The call automation systems developer said the repurchases will be made using its cash resources. The company said that as of May 31, it had about 38.9 million shares of common stock issued and outstanding.
  • Men's Wearhouse (MW) said it now expects second-quarter earnings to meet or exceed the higher end of the prior outlook range of 88 cents to 92 cents a share. The revised forecast is primarily due to stronger retail apparel sales at the company's traditional Men's Wearhouse stores, the company said. Analysts polled by Thomson Financial are currently estimating per-share earnings of 90 cents for the quarter.
  • Micron Technology (MU), struggling with sharp price declines for its memory chips used in PCs and other electronics, has cut 5% of its global workforce, or 1,100 jobs. The job cuts occurred in the Boise, Idaho-area, where Micron is headquartered, the company said in a written statement. "Workforce reductions are always difficult, but these initiatives are being pursued to support the longterm global viability and competitiveness of the company," CEO Steve Appleton said. Micron is realigning its business in a bid to become profitable. For the three months ended May 31, the company lost $225 million, or 29 cents a share.
  • Motorola (MOT) said it expects to report a second-quarter loss and revenue that will be below its prior forecasts as the mobile-phone giant said its results were hampered by poor sales in Europe and Asia.
  • Resources Connection's (RECN) fourth-quarter net income rose 2% to $16.1 million, or 32 cents a share, from $15.7 million, or 31 cents a share, a year earlier, as revenue grew 21%. The professional services company's revenue for the quarter ended May 31 rose to $200.5 million from $165.9 million in the year-ago period. On average, analysts expected per-share earnings of 31 cents on revenue of $198.9 million, according to a poll by Thomson Financial. Resources Connection's shares closed Wednesday down 32 cents, or 1%, at $32.79.
  • Rio Tinto (RTP) agreed to purchase Canadian aluminum giant Alcan (AL) for $101 a share, or about $38 billion, in an effort to help the Canadian aluminum giant stave off a hostile bid from Alcoa (AA).
  • Ruby Tuesday (RT) reported fiscal fourth-quarter net earnings of $24.7 million, or 46 cents a share, down 22% from $31.7 million, or 53 cents a share, in the year-ago period. Excluding items, the company posted adjusted earnings of 50 cents a share compared with 49 cents a share in the fourth quarter of fiscal 2006. The restaurant operator said revenue in the 13 weeks ended June 5 fell to $356.8 million from $364.2 million. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 47 cents on revenue of $366.5 million. Ruby Tuesday also increased its share repurchase authorization by 6.5 million shares.
  • Sallie Mae (SLM) said legislation approved by the House that would slash federal subsidies for student loans is threatening a pending $25 billion leveraged buyout of the company. Its shares plunged nearly 10%.
  • Yum Brands (YUM) overcome weakness in the United States and posted an 11.5% rise in second-quarter profit due to strength in China and other international markets. The fast-food giant also raised its 2007 profit target.

Market Update:

  • Asian trading closed with the Hang Seng +0.89%, Nikkei -0.36%, Sensex +1.22%, Taiwan +0.68% and Shanghai +1.30%.
  • A quick glance over at Europe finds the CAC +0.38%, DAX +0.30%, FTSE +0.27%, ATX +0.33%, Swiss Mkt. -0.48% and Stockholm +0.12%.
  • Crude oil is trading higher +0.70 to 73.26 and gold is also up +3.9 to 665.9 this morning.
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