Stocks to Watch: CAG, KMX, RAD & More
Senior Producer, CNBC
Take a look at some of Thursday’s morning movers:
ConAgra - The food producer earned $0.44 per share, excluding certain items, eight cents above estimates. It raised its fiscal-year forecasting, noting its ability to maintain earnings growth in a difficult economic environment. The company also boosted its quarterly dividend by one cent to $0.24 per share.
CarMax - The car retailer reported fiscal second-quarter profit of $0.48 per share, four cents short of analysts' estimates. The shortfall comes as Carmax's wholesale unit sales fell and expenses rose.
Rite Aid - The drugstore chain reported a second-quarter loss of $0.05 per share, two cents smaller than the Street had been expecting. The company said it's making progress in its turnaround efforts, though its same-store sales were flat from a year earlier because of a drop in pharmacy sales, as well as store closings.
Norfolk Southern - The railroad operator now expects to earn $1.18 to $1.25 per share for the third quarter, far below current consensus forecasts of $1.63 a share. The company blamed a decline in coal and merchandise shipments, plus a drop in fuel surcharge revenues. The announcement may also affect the shares of rivals Union Pacific and CSX.
Adobe Systems - The software maker reported third-quarter profit of $0.58 per share, matching Street estimates, but its fourth-quarter guidance falls short of expectations. Adobe expects fourth-quarter earnings per share of $0.53 to $0.58, compared to estimates of $0.67 a share.
AOL - AOL has named board member Karen Dykstra as its new chief financial officer. As part of the transition, she will give up her seat on the board, with the company simultaneously announcing the appointment of PepsiCo CFO Hugh Johnston to the board. AOL CEO Tim Armstrong said the company is still seeking two additional board members.
Bed Bath & Beyond - The company earned $0.98 per share for its fiscal second quarter, four cents below estimates. The retailer’s revenue was boosted by new acquisitions, but costs related to those acquisitions weighed on the bottom line. During the quarter, the company bought discount chain Cost Plus and linens distributor Linen Holdings.
Trulia - Trulia priced its initial public offering at $17 per share, above the expected range of $14 to $16. Shares of the online real estate marketplace will begin trading under the symbol "TRLA" today on the New York Stock Exchange.
Starbucks - Starbucks will begin selling its new single-serve brewing machine online this week for $199. The machine, called the Verismo, will also be sold in Starbucks stores starting next month.
Bank of America - Bank of America is planning to speed up previously announced jobs cuts, according to The Wall Street Journal. The paper reported the bank is planning to cut 16,000 jobs by the end of the year, to combat declining revenue. Bank of America had previously announced it would cut 30,000 jobs and $5 billion in annual expenses by the end of 2013.
Questcor Pharmaceuticals - The company is holding a news conference to discuss reimbursement developments for its primary product, Acthar Gel. News that Aetna was dropping coverage for most uses of that product cut the stock's value nearly in half yesterday. Acthar Gel is used to treat a variety of diseases, including multiple sclerosis and neuromuscular conditions.
Morgan Stanley, Goldman Sachs, Citigroup - UBS has downgraded all three stocks to "neutral" from "buy," saying current valuations reflect optimism that the banking industry environment will become meaningfully better.
Qualcomm - RBC raised earnings estimates and its price target for the chipmaker, citing strengthening secular trends. RBC rates Qualcomm "outperform."
Coach - Credit Suisse has downgraded the luxury goods maker's shares to "neutral" from "outperform," because of valuation, as well as signs of increasing competitive pressure in North America.
Limited Brands - Credit Suisse has upgraded Limited's shares to "outperform" from "neutral," saying Limited has both pricing power and an increasing ability to return cash to shareholders.
Marriott International - The hotel operator's stock has been downgraded to "neutral" from "overweight" at J.P. Morgan Securities, primarily on a valuation basis as the stock approaches the firm's year-end 2012 price target of $42.
—By CNBC’s Peter Schacknow
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