Stocks in Focus

Hewlett-Packard (HPQ) may move to the upside after it reported adjusted second quarter earnings of $1.09 per share, higher than the consensus estimate of $1.05 per share. Revenues rose to $30.8 billion from the year-ago’s $27.4 billion, also exceeding the $29.82 billion consensus estimate. The company also raised its outlook for the full year.

Analog Devices (ADI) is likely to trade higher after it reported that its second quarter revenues rose 41% to $668 million and said its earnings from continuing operations climbed to 55 cents per share from adjusted earnings from continuing operations of 21 cents per share last year. Analysts estimated earnings of 50 cents per share on revenues of $644.12 million. The company also raised its dividend by 10% to 22 cents per share.

Biogen Idec (BIIB) may react to an announcement by the company and its collaboration partner Roche that they have decided to discontinue the clinical development program of rheumatoid arthritis treatment ocrelizumab. The companies concluded that the overall benefit to risk profile of the treatment was not favorable compared to the currently available treatment options.

Donaldson (DCI) could also be in focus after it raised its full year guidance, with the company currently estimating adjusted earnings of $2.10-$2.20 and sales of $1.83 billion-$1.86 billion. The company attributed the optimism to a strong third quarter performance. The consensus estimates call for earnings of $1.97 per share on revenues of $1.82 billion. Preliminary results released by the company showed that it expects sales of $498 million to $413 million for the third quarter and adjusted earnings of 64-66 cents per share. Analysts estimate earnings of 54 cents per share on revenues of $462.64 million.

Photronics (PLAB) is also likely to move in reaction to its announcement that its second quarter sales rose 26% year-over-year to $105.1 million. The company reported non-GAAP earnings of 9 cents per share compared to a loss of 21 cents per share last year. Analysts estimated earnings of 4 cents per share on revenues of $102.34 million.

EOG Resources (EOG) could see some activity after it said its Canadian subsidiary EOG Resources Canada has agreed to acquire shares of Galveston, which owns a 49% stake in the planned LNG export terminal to be located at Bish Cove. Apache (APA) had earlier executed an agreement to buy 51% of the planned project.

Progressive Corp. (PGR) may react to its announcement that its net income per share for April remained flat at 17 cents per share, with net premiums earned rising 4% year-over-year, while the combined ratio rose 1.5 points to 90.7.

Yahoo (YHOO) is also expected to react to its announcement that it has signed an agreement to buy Associated Content. The company expects the deal to close in the third quarter of 2010, although it did not disclose the financial terms of the deal.