Stocks to Watch: COST, DHR, CBE & More
Senior Producer, CNBC
Take a look at some of Wednesday’s morning movers:
Costco Wholesale - The warehouse retailer earned $1.39 per share for its fourth quarter, eight cents above estimates, while revenue also beat consensus. Same-store sales rose by 5 percent from a year earlier.
Danaher, Cooper Industries - The two companies are selling their Apex Tool Group joint venture for $1.6 billion. Apex makes hand tools for the Sears Craftsman Brand, Crescent wrenches, and Lufkin measuring tapes.
Monster Beverage - Stifel Nicolaus is downgraded the beverage maker's shares to "hold" from "buy," pointing to a deceleration in sales.
Alcoa - The Dow Jones Industrial Average component kicked off the start of earnings season with third-quarter profit of $0.03 per share, compared to estimates of a breakeven quarter. Revenue also exceeded estimates, with Alcoa saying that aluminum market fundamentals are strong.
Yum Brands - The restaurant operator earned $0.99 per share for its third quarter, two cents above estimates, with revenue also above consensus. The parent of Taco Bell, Pizza Hut, and KFC also raised its full-year earnings growth forecast to at least 13 percent, excluding certain items.
Home Depot - Oppenheimer has downgraded the stock to "perform" from "market perform" on a valuation basis. Oppenheimer did say that the U.S. is in the early stages of a housing recovery and that it is well positioned to take advantage. (Read More: Bulls Go Shopping at Lowe’s.)
International Paper - The company is increasing its quarterly dividend by 14 percent to $0.30 per share. The increased dividend is payable on Dec. 17 to holders of record as of Nov. 15.
Microsoft - CEO Steve Ballmer saw his pay package fall by 4 percent this fiscal year, partially due to a drop in Windows revenue. Separately, Netflix CEO Reed Hastings will not seek re-election to Microsoft’s board, after serving as a director since March 2007.
Best Buy - Chief Financial Officer James Muehlbauer is leaving the electronics retailer at the end of the current fiscal year, which concludes on Feb. 3. He’s been CFO for four years and has worked for Best Buy since 2002. This comes as the company searches for a permanent CEO to replace the departed Brian Dunn. Separately, reports say founder Richard Schulze has gotten permission to speak with eight to 10 key Best Buy executives, as he explores a potential buyout.
Chevron - The oil company said third-quarter earnings will be substantially lower than in the prior quarter. The company says production fell during the first two months of the quarter, and that prices were lower as well.
Toyota Motor - The automaker is recalling more than 7.4 million vehicles around the world to fix a possible faulty power window switch. The recall affects more than a dozen models from the 20056 through 2010 model years.
FedEx - FedEx is planning to cut costs at its express air freight and services divisions, hoping to add $1.7 billion to its bottom line over a four-year period. This follows a cut in the company’s profit forecast last month.
Boeing - The jet maker is on track to achieve its 787 Dreamliner production targets, according to vice president Jeffrey Luckey. The company produces 3 1/2 787 jets per month, but plans to increase that to five by year’s end and then to 10 by the end of next year.
Cummins - Cummins has cut its sales and profit forecast because of a weaker global economy. The engine maker is also cutting up to 1,500 jobs, shortening work weeks, and slowing production at some of its factories.
True Religion Apparel - The jeans maker is exploring strategic alternatives, after receiving indications of interest from a variety of possible buyers.
Viacom - Bernstein has downgraded Viacom shares to "underperform" from "market perform."
—By CNBC’s Peter Schacknow
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