Stocks to Watch: AA, KKD, OI & More
Senior Producer, CNBC
Take a look at some of Wednesday’s morning movers:
Alcoa - The Dow Jones Industrial Average component got earnings season off to a positive start, reporting an unexpected profit for its first quarter. Its earnings, however, were 69 percent below year-earlier levels on higher input costs and lower aluminum prices.
Krispy Kreme Doughnuts - President and Chief Operating Officer Kenneth May has resigned for what’s being termed “personal reasons.” May had held that post for less than five months.
Owens-Illinois - The company says its first-quarter earnings will exceed last year’s first-quarter profit of 50 cents a share, meaning it will beat current estimates, which are at 50 cents a share. The maker of glass containers says stronger production rates are one of the primary factors.
Best Buy - The electronics chain confirming that CEO Brian Dunn resigned amid an unspecified probe into his personal conduct. It says those issues were unrelated to the company’s operations or financial controls.
Apple - The company may be sued as early as today in a case involving alleged price fixing of electronic books, according to Reuters. Others involved in the case, including CBS unit Simon & Schuster and HarperCollins, are said to be settling the matter.
Nokia - The handset maker says it’s found a software bug in its new Lumia 900 smartphone, which can cause the phone to lose its data connection. It says the bug will be fixed early next week. Nokia also lowered its outlook, warning that its phone business would post losses for the first and second quarter due to competitive pressures at a time when it’s revamping its product lineup.
Travelzoo - The travel website operator is planning to put itself up for sale, according to Reuters. It’s said to be in the process of hiring a financial advisor.
The earthquake in Indonesia has investors watching the shares of coffee roasters and retailers, such as Dunkin’ Brands, Green Mountain Coffee Roasters, Starbucks, and Peet’s Coffee and Tea, Caribou Coffee, Coffee Holding, and Farmer Bros. Indonesia is the world’s fourth-largest coffee producer, although it’s too early to assess any possible supply disruption.
Yelp - Goldman Sachs has begun coverage of the consumer reviews site with a “neutral” rating, saying Yelp is still in the early stages of monetizing its popularity. Citi has issued a “neutral” on Yelp, while Jefferies rates it a “hold,” and Oppenheimer a “perform.”
Medivation, Dendreon - Citi has named Medivation a “Most Preferred” stock, and Dendreon a “Least Preferred” stock. Citi is upbeat on Medivation’s lead product, currently known as MDV3100, designed to treat prostate cancer, while it’s cautious on prospects for Dendreon’s Provenge drug.
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