Movers & Shakers: Wednesday’s biggest gaining and declining stocks

Feb.20, 2008 in Market Outlook

HP, Jakks, Microsoft, MoneyGram, Staples, Yahoo

By MarketWatch

Last Update: 8:38 AM ET Feb 20, 2008

TEL AVIV (MarketWatch) — Among the companies whose shares are expected to see
active trade in Wednesday’s session are Euronet, Garmin, HP, Jack in the Box,
Jakks Pacific, KKR Financial, Microsoft, MoneyGram, PepsiCo, Sharper Image,
Staples, Suntech, U.S. Concrete, and Yahoo.

British Airways (BAIRY) lifted fuel surcharges on all tickets issued after Feb.
25 due to high oil prices. Surcharges on long-haul flights of less than nine
hours will increase by 5 pounds per flight, to 53 pounds ($103), and those on
flights more than nine hours will rise by 6 pounds, to 64 pounds per flight. The
short-haul surcharge remains at 10 pounds per flight.

Chiquita Brands International Inc.’s (CQB) fourth-quarter loss narrowed to $26
million, or 67 cents a share, from a year-earlier $41.5 million, or 98 cents a
share. Results from the latest quarter included a $26 million restructuring
charge. The fruit producer said sales increased to $1.15 billion from $1.08
billion, due to higher banana pricing in European and North American markets.

CNet Networks Inc. (CNET) named Dan Farber editor in chief of CNet News.com,
succeeding Jai Singh, who is leaving the company March 10. The media company said
Farber had been vice president of editorial at ZDNet. It also named Larry Dignan
editor in chief of ZDNet.

Credit Suisse (CS) has suspended its global head of the collateralized debt
obligations, Kareem Serageldin, along with a number of traders, in connection
with the write-down related to losses on asset-backed securities, the Financial
Times reported on its Website. Credit Suisse said earlier that it found “errors”
during an internal review in connection with “the operation of ongoing control
processes.” See related story
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Crocs Inc.’s (CROX) fourth-quarter net income rose to $38.3 million, or 45 cents
a share, from $20.8 million, or 26 cents a share, a year earlier. Revenue nearly
doubled to $224.8 million from $112.9 million. Analysts had predicted 44 cents a
share and revenue of $207.7 million. Crocs affirmed its 2008 earnings and revenue
forecasts of $2.70 a share and $1.16 billion, respectively. Wall Street is
looking for $2.71 a share and $1.18 billion.

Delphi Corp.’s (DPHIQ) fourth-quarter loss narrowed to $542 million from $853
million as the company recorded a tax benefit of $703 million. Delphi also
reported a charge of $595 million to write down assets of discontinued
operations. The auto parts company said revenue fell to $5.3 billion from $5.5
billion a year earlier. Delphi is attempting to secure financing to emerge from
Chapter 11 bankruptcy protection.

Euronet Worldwide Inc., (EEFT) the Leawood, Kan., provider of
electronic-payment-processing services, reported fourth-quarter net income rose
28% as revenue rose 58%. The company also said it is mulling the prospect of
again bidding for MoneyGram. (MGI) Euronet’s earnings reached $19.5 million, or
37 cents a share, from $15.3 million, or 38 cents, in the year-earlier period.
Shares outstanding rose 28%, to 54.7 million. Revenue reached $263.7 million from
$166.8 million. The results reflect the acquisition of RIA Envia Inc. on April 4,
2007.

Exxon Mobil Corp.: (XOM) A unit of the Irving, Texas, oil giant said it would
invest $1.3 billion to begin a drilling program in 2008-2009 at the Point Thomson
Field on the Alaskan North Slope. Exxon Mobil Production Co. said in a statement
late on Tuesday that it had submitted a plan to the state Department of Natural
Resources. The plan would evaluate, delineate and develop the Point Thomson
reservoirs “through a phased approach,” Exxon Mobil said. The funding would pay
for production facilities, pipelines and support infrastructure, and production
would begin by year-end 2014, the company said. It expects about 200 million
cubic feet a day of gas to be produced at Point Thomson. Other major owners of
the Point Thomson project include units of BP, (BP) Chevron, (CVX) and Conoco.
(COP)

Flagstar Bancorp Inc., (FBC) the Troy, Mich., bank-holding company, omitted its
first-quarter dividend. The company had paid out a nickel a share in the fourth
quarter. “It is prudent to preserve capital,” Vice Chairman and Chief Executive
Mark Hammond said in a statement late on Tuesday, “until the capital markets
normalize and residential real estate shows signs of improvement.” Flagstar, with
$15.8 billion of assets, said that meantime its loan production is “strong” and
its net interest margin is widening.

Garmin Ltd.’s (GRMN)fourth-quarter earnings jumped to $307.3 million, or $1.39 a
share, from $180.3 million, or 82 cents share, a year earlier, helped in part by
higher automotive/mobile unit revenue. Excluding items, earnings were $1.31 a
share for the quarter. A Thomson Financial survey of analysts, on average,
predicted earnings of $1.11 a share for the quarter. Analysts’ estimates usually
exclude items. The George Town, Cayman Islands, telecommunications company said
sales climbed to $1.22 billion from $611.2 million a year ago. The company
expects 2008 overall revenue to exceed $4.5 billion and earnings to exceed $4.40
a share.

Hewlett-Packard Co. (HPQ) reported first-quarter profit of $2.1 billion, or 80
cents a share, compared with $1.5 billion, or 55 cents a share, in the year-ago
period. Revenue rose to $28.5 billion from $25.1 billion. Excluding charges and
one-time items, H-P would have earned $2.3 billion, or 86 cents a share; analysts
surveyed by Thomson Financial forecast the company to earn 81 cents a share on
$27.6 billion in sales. For its second quarter, H-P expects to earn 77 cents to
78 cents a share on revenue of $27.7 billion to $27.9 billion. See full story
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Host Hotels & Resorts Inc. (HST) reported fourth-quarter net income of $294
million, or 54 cents a share, up from $196 million, or 36 cents, earned in the
final three months of 2006. Earnings included net gains of $24 million, or 4
cents a share, for the latest quarter and $8 million, or a penny a share, a year
earlier. Earnings from continuing operations were 49 cents a share, up from 30
cents. Quarterly funds from operations improved to 75 cents a share from the
prior year’s 58 cents a share, as revenue increased to $1.81 billion from $1.71
billion. The company also pegged earnings at 8 cents to 9 cents a share for the
first quarter as well as $1.05 to $1.14 for the full year. In addition, Host
Hotels announced a $500 million stock-buyback program.

Intel Corp. (INTC) disclosed in a filing to the Securities and Exchange
Commission that it received a subpoena from the Attorney General of the State of
New York requesting documents and information to assist in its investigation of
whether there have been any agreements or arrangements establishing or
maintaining a monopoly in the sale of microprocessors in violation of federal or
New York antitrust laws. Intel is facing a similar probe from the European
Commission as well as lawsuits from rival Advanced Micro Devices. (AMD)

Jack in the Box Inc., (JBX) the San Diego fast-food chain, reported fiscal
first-quarter net income fell 2.2% on 5.6% higher revenue. For the 16 weeks ended
Jan. 16, the company earned $36.5 million against $37.4 million in the
year-earlier period. Earnings per share rose to 60 cents from 52 cents, owing to
a 16% drop in shares outstanding to 60.9 million. Revenue reached $904.9 million
from $856.7 million. A survey of analysts by FactSet Research produced consensus
estimates of 56 cents of profit on $889.2 million of revenue. Comparable sales –
those excluding revenue from acquisitions and divestitures — rose 1.5% at Jack
in the Box outlets, compared with the company’s estimate of 2% to 3%. Comparable
sales rose 4.5% at Qdoba Mexican Grill. For the second quarter, JBX estimates
same-store sales rises of 1% to 2% at its flagship stores and 3% to 5% at Qdoba.
For fiscal 2008, the company estimates earnings of $1.98 to $2.08 a share.
FactSet’s survey is looking for $2.04.

Jakks Pacific Inc., (JAKK) the Malibu, Calif., toymaker, reported fourth-quarter
net income rose 48% on 20% higher sales and said it would buy back as much as $30
million of its stock. Earnings reached $34.4 million, or $1.06 a share, from
$23.2 million, or 73 cents, in the year-earlier period. Sales rose to $285.1
million from $238.3 million. A survey of analysts by FactSet produced a consensus
estimate of 75 cents of profit on $248.3 million of sales.

Kindred Healthcare Inc., (KND) the Louisville, Ky., operator of hospitals and
nursing centers and provider of rehabilitation services, reported fourth-quarter
net income fell 26% on 5.8% lower revenue. Earnings were $16.3 million, or 43
cents a share, comapred with $22.1 million, or 56 cents, in the year-earlier
period. Earnings from continuing operations were 46 cents against 54 cents. A
series of special items in the latest period netted to a reduction in net of 5
cents a share. Revenue fell to $1.01 billion from $1.07 billion. A survey of
analysts by FactSet produced a consensus estimate of 49 cents of profit on $1.01
billion of revenue. For the first quarter, Kindred expects earnings from
continuing operations of 22 cents to 27 cents a share. FactSet’s survey is
looking for 39 cents. The company said its estimate reflects the impact of a new
health-care law and proposed rules for long-term acute-care hospitals.

KKR Financial Holdings (KFN)postponed repayment of billions of commercial paper
and is holding talks with creditors, according to a published report in the
Financial Times Wednesday. KKR Holdings, the listed affiliate of private-equity
firm Kohlberg Kravis Roberts & Co., has deferred payment on debt that was due
last Friday, the report said, citing a regulatory filing. The development comes
after the firm received a $270 million cash infusion in September.

News Corp. (NWS) The social-networking Website MySpace.com and major record
labels are in talks on a service that would enable users to listen to music free,
but only from their computers, people close to the situation told The Wall Street
Journal. MySpace is a unit of the New York media company News Corp., which in
mid-December closed the purchase of the Journal’s parent, Dow Jones. The service
probably would be a joint venture of the site and the labels it approached,
including Vivendi’s (VIVEF)(FR:012777) Universal Music, Warner Music Group, (WMG)
EMI, (EMIPY) and Sony BMG, a venture of Sony (SNE) and Bertelsmann of Germany,
the Journal reported.

PepsiCo Inc. (PEP)affirmed its 2008 earnings forecast of at least $3.72 a share.
Analysts surveyed by Thomson Financial expect, on average, earnings of $3.73 a
share. The Purchase, N.Y., beverage and snack food company also expects 2008 cash
from operating activities to be about $7.6 billion and capital spending of $2.7
billion. In addition, PepsiCo said it plans to repurchase about $4.3 billion in
shares during 2008.

Sealed Air Corp. (SEE) increased the quarterly dividend 20% to 12 cents, payable
on March 21 to holders of record March 7.

Sharper Image Corp., (SHRP) the San Francisco retailer, said in a statement
Wednesday that it had filed under Chapter 11 of the U.S. Bankruptcy Code in U.S.
Bankruptcy Court for the District of Delaware. “The company intends to continue
to conduct business as usual while it devotes renewed efforts to resolve its
operational and liquidity problems and develops a reorganization plan,” it said.

Staples Inc.: (SPLS) Fitch Ratings placed the BBB+ ratings on Rating Watch
Negative following the company’s proposal to buy Corporate Express NV (CXP) at
7.25 euros ($10.68) a share, or a total of about $3.7 billion. Corporate Express
has rejected Staples’s offer but the office-supply retailer will remain on Rating
Watch Negative until it says it will not pursue the deal, Fitch said. See related
story
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