Wednesday, June 9, 2010

Stocks in Focus

Wednesday 09 Jun 2010
Allscripts
(MDRX) and Eclipsys Corp. (ECLP) are likely to be in focus after the companies announced that they have agreed to merge in an all-stock deal valued at about $1.3 billion. Under the terms of the agreement, Eclipsys stockholders will receive 1.2 shares of Allscripts for each share of Eclipsys. The merger is subject to the completion of a secondary offering of Allscripts shares owned by Misys, the majority shareholder of Allscripts, and the buyback of additional Allscripts shares owned by Misys. The companies expect the deal to be consummated in 4-6 months.

Pall Corp. (PLL) could see some activity after it announced that its third quarter sales rose 10.8% to $616 million. The company’s pro forma earnings rose to 58 cents per share, up 38% from 42 cents per share last year. Analysts estimated earnings of 50 cents per share on revenues of $598.74 million. The company also said, including 7 cents per share of a benefit from currency effects, it expects full year earnings to be at the high end of the range of its previous guidance, excluding discreet items.

NCI Building Systems (NCS) is also likely to move in reaction to its announcement that its second quarter sales fell 10% to $202.34 million. The company reported a net loss of $14.15 per share compared to a loss of $31.22 per share last year, while its adjusted loss narrowed to 86 cents per share from the year-ago’s $2.10 per share. The consensus estimates called for a loss of 54 cents per share on revenues of $203.73 million.

Bob Evans (BOBE) could also be in focus after it announced that its fourth quarter net sales rose 2.7% to $442.7 million. The company’s earnings fell slightly to 68 cents per share from 69 cents per share last year. Analysts estimated earnings of 63 cents per share from $446.07 million.

Microchip Technology (MCHP) is likely to move after the company reaffirmed its earlier issued financial guidance. The company continues to expect non-GAAP earnings of 52 cents per share and sales of $318 million for the June quarter. Analysts estimate earnings of 52 cents per share on revenues of $319.46 million.

Texas Instruments (TXN) may see some activity after it raised the low-end of its guidance for the second quarter. The company now expects earnings of 60-64 cents per share compared to its previous guidance of 56-64 cents per share. The company also lifted the low-end of its revenue guidance to $3.45 billion from its earlier estimate of $3.31 billion, while it maintained the high-end at $3.59 billion. The consensus estimates call for earnings of 61 cents per share on revenues of $3.47 billion.

CenterPoint Energy (CNP) could see some weakness after it announced that it has commenced an underwritten public offering of 22 million shares of its common stock. On the other hand, Bunge (BG) may gain ground after it announced board approval for the repurchase of up to $700 million of its shares through December 31, 2010.

Piedmont Natural Gas
(PNY) is also likely to move in reaction to its announcement that its second quarter net income fell to 65 cents per share from 73 cents per share last year. Operating revenues rose 4% to $472.85 million. The results were ahead of expectations. The company reaffirmed its 2010 earnings per guidance at $1.90-$2 per share, while analysts expect earnings of $1.61 per share.

Take-two Interactive Software (TTWO) rose in Tuesday’s after hours session after it reported second quarter revenue growth of 54% to $268 million and an adjusted profit of 34 cents per share. Analysts estimated earnings of 26 cents per share on revenues of $281.3 million. For the third quarter, the company estimates a loss of 10-20 cents per share and revenues of $250 million to $300 million. Analysts estimate a loss of 40 cents per share on revenues of $165.4 million. The company raised its full year guidance to a loss of 10-30 cents per share and revenues to $880 million to $980 million. The consensus estimates call for a loss of 39 cents per share on revenues of $910.5 million.

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