Stocks to Watch: BIG, HRL, TOL & More
Senior Producer, CNBC
Take a look at some of Wednesday's morning movers:
Big Lots - The retailer reported first-quarter profit of $0.68 per share, excluding certain items, one cent shy of estimates. It also cut its full year forecast to $3.25 to $3.40 per share, versus the prior forecast of $3.63 to $3.73, citing a same-store sales decline.
Hormel Foods - Hormel reported fiscal second-quarter profit of $0.48 per share, six cents above estimates, with both sales and profits at record highs. The quarter’s performance was driven by higher profit margins and lower overhead costs.
Toll Brothers - The largest U.S. builder of luxury homes reported a second-quarter profit of $0.10 per share, above analyst estimates of $0.03. Toll saw a 14 percent jump in home deliveries, seen as a sign of a housing market recovery.
American Eagle - The teen retailer reported quarterly profit if $0.22 per share, excluding certain items, two cents above estimates. Its current quarter guidance is also above consensus.
Starbucks - Bank of America/Merrill Lynch is upgrading the stock to "buy" from "hold," saying the coffee chain is well-positioned for strong earnings growth in the years ahead.
Applied Materials - Goldman Sachs has upgraded the semiconductor equipment maker's shares to "neutral" from "sell," though the firm continues to be cautious on order levels for the second half of 2012.
Dell - Dell reported first-quarter profit of $0.43 per share, three cents short of estimates. Both its first-quarter revenues and its second-quarter sales guidance came in below Street consensus, as well, with increased competition and poor execution cited as key reasons.
Guess - The apparel maker lowered its full-year guidance to $2.50 to $2.65 per share, from the prior forecast of $2.50 to $2.85 a share. First-quarter profit of $0.30 per share did beat analyst estimates by four cents, with the company seeing fewer discounts in North America and higher sales in Asia.
Facebook , Nasdaq OMX - The fallout continues from Facebook’s initial public offering. Regulators are probing the technical problems associated with the offering, and both companies are the targets of lawsuits. Morgan Stanley, the lead underwriter for the Facebook offering, has been subpoenaed by Massachusetts regulators over an analyst’s discussion with investors about Facebook’s financial prospects.
PetSmart - PetSmart reported first-quarter profit of $0.85 per share, beating estimates of $0.73. The pet products retailer also raised its full-year outlook, as sales trends improve. PetSmart saw a 7.4 percent increase in same-store sales during the quarter.
RailAmerica - RailAmerica is considering strategic alternatives, including a potential sale of the railroad operator. The company says it’s in preliminary discussions with third parties, with no assurances that any agreement will be reached.
MetLife - The insurer plans to unveil a strategic growth plan today that will involve a refocusing of its U.S. business, as well as expanding its presence in emerging markets.
BlackRock - Barclays says it will sell 26.2 million shares back to Blackrock at $160 per share, 2 percent below yesterday’s closing price of $163.37.
Take Two Interactive - The videogame maker reported a wider-than-expected fiscal fourth-quarter loss, but is raising its forecast for the current fiscal year. The company did not give specifics on a release date for the latest version of its hit "Grand Theft Auto," but investors think the raised guidance implies it will be out this year.
—By CNBC’s Peter Schacknow
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