Stocks to watch Friday: Best Buy, Coinstar, Google
04/13 06:53 AM
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WASHINGTON (MarketWatch) -- Among the stocks that could see active trade in Thursday's session are Best Buy Co. (BBY:$22.24,00$0.28,001.28%) , Coinstar Inc. (CSTR:$61.31,00$-1.84,00-2.91%) and KB Home (KBH:$8.46,00$0.27,003.30%) .
The first of the nation's biggest banks -- J.P. Morgan Chase & Co. and Wells Fargo & Co. (WFC:$34.02,00$0.40,001.19%) -- post quarterly financial results Friday, with Igate Corp. (IGTE:$17.17,00$0.22,001.30%) , Duckwall-Alco Stores Inc. (DUCK:$9.352,0$0.202,02.21%) , Shaw Communications Inc. (SJR:$20.89,00$0.25,001.21%) and Theratechnologies Inc. (THER:$1.99,00$0.09,004.74%) also scheduled to report.
The search for a new chief executive to run Best Buy (BBY:$22.24,00$0.28,001.28%) is expected to take six to nine months to complete, the company said. Six search firms will be interviewed by a committee of directors, with a final search firm partner to be designated in the next several weeks, the Minneapolis-based electronics retailer said. Both internal and external candidates, including current interim CEO Mike Mikan, will be considered. The move comes as The Wall Street Journal reported that a company inquiry has focused on whether former CEO Brian Dunn misused company assets in the course of an alleged relationship with a 29-year-old female subordinate. Dunn's resignation was announced Tuesday.
Also late Thursday, Coinstar (CSTR:$61.31,00$-1.84,00-2.91%) revised its first-quarter and 2012 forecasts, citing a recent surge in demand for Redbox movie rentals. As revised, the Bellevue, Wash.-based company pegged core earnings from continuing operations in a range between $1.36 to $1.40 a share for the first quarter, on revenue of $567 million to $569.2 million -- both well above Coinstar's (CSTR:$61.31,00$-1.84,00-2.91%) forecast issued in February. And for all of 2012, management now expects core earnings from continuing operations of between $4.40 and $4.80 a share, on revenue projected at nearly $2.16 billion and $2.28 billion. Coinstar (CSTR:$61.31,00$-1.84,00-2.91%) will report first-quarter results on April 26.
The board of Adobe Systems Inc. (ADBE:$33.55,00$0.545,01.65%) approved a new share-buyback program authorizing the San Jose, Calif.-based company to repurchase up to $2 billion in common stock. The authorization, to run through the end of the company's 2015 fiscal year, replaces one for $1.6 billion in stock that Adobe said has been exhausted. Repurchases will be done in the open market and via structured agreements with third parties.
KB Home (KBH:$8.46,00$0.27,003.30%) said its dividend has been cut by 60%, in a move intended to redeploy cash toward "growth opportunities." The Los Angeles-based company's board declared a quarterly dividend of 2.5 cents a share on common stock, down from 6.25 cents previously. "Having ended the first quarter with a value of homes in backlog 30% greater than the year before, and with increases in all four regions of the business, we see signs that the housing market is recovering," said Jeffrey Mezger, president and CEO, in a statement. The reduced dividend's payable May 17 to stockholders of record as of May 3.
The board of Dow Chemical Co. (DOW:$32.67,00$0.80,002.51%) approved an increase in the company's quarterly dividend to 32 cents a share from 25 cents previously, the Midland, Mich.-based company said. The increase works out at 28% and is in keeping with what Chairman and CEO Andrew Liveris called Dow Chemical's (DOW:$32.67,00$0.80,002.51%) three priorities: "shareholder remuneration, debt paydown and organic investments in our portfolio." The dividend's payable July 30 to holders of record on June 29.
The board of Mosaic Co. (MOS:$51.17,00$1.19,002.38%) declared a quarterly dividend of 12.5 cents a share -- a 150% increase over the company's previous 5-cent payout. The dividend's payable May 17 to holders of record as of May 3, the Plymouth. Minn.-based producer of phosphate and potash fertilizers and feed ingredients said.
Along with reporting financial results for the fourth quarter and fiscal year ended Jan. 28, Talbots Inc. (TLB:$3.13,00$0.00,000.00%) said that it's continuing to explore strategic alternatives and that the board of the Hingham, Mass.-based apparel retailer is continuing with its search for a new president and CEO. There can be no assurance that a transaction will emerge as a result of the board's review of options. Turning to expectations for the first quarter, Talbots said sales are expected to drop nearly 10% from the prior year, to about $272 million. Net sales for the fourth quarter slipped 1.1% to $289.4 million, as the company posted wider losses from continuing operations.
A major stockholder in Sealy Corp. (ZZ:$2.13,00$0.09,004.41%) said it would withhold votes for all director nominees at the company's April 18 annual meeting. New York-based H Partners Management LLC, which said it's the beneficial owner of about 15.3% of Sealy's outstanding shares, also took a shot at KKR over the equity house's affiliation with members of Sealy's board, saying that since the mattress company's initial public offering in 2006, "KKR-dominated boards have overseen the destruction of $1.2 billion, or almost 90%, of common equity value." "We seek change that will benefit all stockholders," said Usman Nabi, partner at H Partners, in a statement.
Thursday earnings recap
Google Inc. (GOOG:$651.01,00$15.05,002.37%) reported first-quarter net earnings of $2.89 billion, or $8.75 a share, up from $1.8 billion, or $5.51 a share, earned in the year-earlier period. Quarterly revenue reached $10.65 billion from the prior year's $8.58 billion. On an adjusted basis, the Mountain View, Calif.-based company would have had earnings of $10.08 a share for the latest quarter; revenue, after backing out minus total acquisition costs, would have been $8.14 billion. Analysts who follow the Internet-search giant had been expecting earnings of $9.64 a share on revenue of $8.1 billion, according to a consensus survey by FactSet Research. Separately, CEO Larry Page and fellow co-founder Sergey Brin said Google (GOOG:$651.01,00$15.05,002.37%) will create a new class of nonvoting stock, a move that they described as "effectively a two-for-one stock split."
