<TABLE cellSpacing=0 cellPadding=2 width="100%" bgColor=white border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:js="http://cbs.markewatch.com/xsl"><TBODY><TR><TD width="100%">Altera Corp. (ALTR: news, chart, profile) said its second-quarter sales are on track to meet its own expectations. The chipmaker sees revenue at the high end of its prior forecast of $275.4 million to $278 million. That would put the company's sales 4% to 5% higher than this year's first-quarter sales. Altera is expected to earn 17 cents a share on revenue of $276 million, according to a Thomson First Call survey of analysts. In addition, Altera favorably resolved two tax audits that will result in a tax benefit of $15 million to $20 million in the second quarter. It also elected to repatriate $400 million of foreign earnings, which will result in a tax charge of $21 million. See full story.
American International Group (AIG: news, chart, profile) Chief Executive Martin Sullivan said that the giant insurer won't give earnings guidance any more and its profit will be more volatile in the future. Sullivan's comments came after AIG restated five years of earnings and cut its 2004 net worth by more than $2 billion on Tuesday to correct accounting schemes that were designed to manipulate its results. Before AIG's accounting came under regulators' microscopes this year, the company was renowned for steady earnings growth in an industry that's regularly tested by big losses. See full story.
CBRL Group (CBRL: news, chart, profile) said May same-store sales Cracker Barrel Old Country Store restaurants rose 7.1% over the same period a year ago, amid a 5.1% increase in value of the average check and 3.9% growth in menu pricing. Cracker Barrel same-store retail sales fell 2.3%. Same-store sales at its Logan's Roadhouse restaurants rose 2.6%. The stock closed Tuesday up 16 cents at $40.72.
Cell Genesys (CEGE: news, chart, profile) named Sharon Tetlow to serve as its chief financial officer, replacing Matthew Pfeffler. Tetlow most recently was a venture partner at Apax Partners, a private equity firm. On Tuesday shares of the South San Francisco producer of cancer therapies fell 7 cents to $5.81.
Charter Financial Corp. (CHFN: news, chart, profile) said its board has approved a 40% increase in regular quarterly dividend to 35 cents a share from 25 cents. Shares of the West Point, Ga.-based firm, which is the majority owner of federal mutual holding company First Charter, closed Tuesday at $34.80, up 1.7%.
Delphi Corp. (DPH: news, chart, profile) was downgraded by J.P. Morgan to underweight.
Delta Air Lines (DAL: news, chart, profile) in a filing to the Securities and Exchange Commission said it's amended its credit facility with the GE Capital division of General Electric (GE: news, chart, profile) . GE will reduce the specified levels of earnings before interest, taxes, depreciation, amortization and aircraft rent that Delta is required to achieve, as Delta wanted a change due to historically high fuel prices. In return, GE increased the unrestricted funds that Delta is required to maintain to not less than $1 billion at all times. It previously required Delta to maintain not less than $1 billion in unrestricted funds at all times from March 1, 2005 through Oct. 31, 2005, and $750 million at all times thereafter.
Engineered Support Systems (EASI: news, chart, profile) reported fiscal second-quarter earnings of $19 million, or 44 cents a share, vs. earnings of $18.3 million, or 44 cents a share in the year-earlier period. Excluding discontinued operations, earnings would have been 46 cents a share, missing the average analyst estimate compiled by Thomson First Call of 53 cents a share, due primarily to production delays and greater-than-anticipated costs related to a major defense program. Ongoing revenue rose 26% to $263.8 million, topping analyst forecasts of $250.4 million. The military electronics company lowered its 2005 earnings estimate to $2.00 to $2.03 a share from $2.09 to $2.12. Revenue is now projected to be $1.02 billion to $1.05 billion, vs. analyst forecasts of $1.03 billion. The stock closed Tuesday up 61 cents at $39.
Brazilian low-cost airline GOL Linhas Aereas Inteligentes SA (GOL: news, chart, profile) said it reaffirmed its financial outlook for 2005, despite intense price competition in the second quarter. The airline still sees revenue of around R$3 billion ($1.24 billion), up 53% from 2004, and earnings of between R$2.85 and R$3.15 a share, representing earnings per share growth of around 40%.
Google (GOOG: news, chart, profile) shares rose in pre-market action after Credit Suisse First Boston lifted its price target on the Internet search company to $350 from $275. The firm said it believes the shares have further to go given the momentum in the company's core advertising revenue, the impact of new businesses like Gmail, Froogle and Local, and a valuation that is far from stretched relative to the company's growth rate. In addition, CSFB told clients that while data for the current quarter is just rolling it, it believes trends in volume and pricing are positive.
Hovnanian Enterprises (HOV: news, chart, profile) reported second-quarter profits 51% higher than a year ago and raised its earnings outlook for fiscal 2005 based on higher home sales and continued pricing power. The company said that net income was $106.1 million, or $1.62 a share, in the second quarter compared with $70.5 million, or $1.06 a share, during the year-ago period. Analysts polled by Thomson First Call had expected earnings of $1.61 a share. The Red Bank, N.J.-based homebuilder said total revenue increased 32% to $1.2 billion. See full story.
Kirby Corp. (KEX: news, chart, profile) said that its earnings forecasts for the second quarter and 2005 are unchanged at 65 to 70 cents and $2.45 to $2.55 per share, respectively. The Houston-based operator of inland tank barges and towing vessels also said it made a private placement of $200 million in senior notes due 2013. It said the placement replaces its 2003 senior notes, resulting in $1.4 million in annual interest savings.
Layne Christensen Co. (LAYN: news, chart, profile) said first-quarter net income rose to $2.7 million, or 21 cents a share, from $1.5 million, or 11 cents a share, in the year-ago quarter. The results beat the forecast for earnings of 16 cents a share of analysts polled by Thomson First Call. Revenue at the provider of services for the water, mineral, construction and energy sectors climbed 26.8% to $96.7 million on strong growth across all businesses.
MPS Group Inc. (MPS: news, chart, profile) said its board has approved the repurchase of an additional $65 million worth of its common stock. The Jacksonville, Fla., provider of staffing services said it has $9 million remaining under its previous $65 million authorization set in November 1999. The stock closed Tuesday at $9.38, up 5 cents.
Mylan Laboratories Inc. (MYL: news, chart, profile) said subsidiary Mylan Bertek Pharmaceuticals has received an approvable letter from the U.S. Food and Drug Administration on its new drug application for nebivolol, which is under review for the treatment for hypertension. Mylan said that final approval for nebivolol was contingent upon satisfying additional FDA requirements regarding certain aspects of the pre-clinical data and finalization of the labeling. "We believe that the data from the ongoing pre-clinical study will satisfactorily resolve the FDA's questions," said John O'Donnell, chief scientific officer for Mylan Laboratories. "We will be responding to the FDA in an expeditious manner to move forward with the hypertension approval process."
Nice Systems Ltd. (NICE: news, chart, profile) reiterated its forecast for second-quarter adjusted earnings in the range of 32 to 36 cents a share on revenue of $67 million to $70 million. For 2005, the producer of multimedia digital recording and quality management solutions said it anticipates adjusted earnings of $1.50 to $1.60 a share on revenue of $295 million to $300 million. The Dictaphone unit, whose purchase was closed today, will add $20 million to revenue and 10 cents to earnings, Nice said.
Nortel Networks Corp. (NT: news, chart, profile) swung to a loss in the first quarter, according to a filing with the Securities and Exchange Commission. The Canadian communications and networking equipment giant lost $49 million, or a penny a share, in the period ended March 31. That compares with net earnings of $59 million, or a penny a share, in the same period a year earlier. Revenues in the quarter rose to $2.54 billion from $2.44 billion. See full story.
Quest Software Inc. (QSFT: news, chart, profile) plans to purchase Lindon, Utah-based Vintela Inc. for about $56.5 million in cash. The deal is expected to close in the second quarter or early in the third quarter, the company said. The transaction is expected to reduce 2005 pro forma earnings by about 2 cents a share.
SBC Communications Inc. (SBC: news, chart, profile) plans to offer high-speed Internet access for $14.95 a month for new residential subscribers who order SBC Yahoo! DSL Express, making its broadband package cheaper than many competitors' dial-up services. The Wall Street Journal had reported the offer earlier Wednesday, saying more than half of the 77 million U.S. households with Internet access still use dial-up connections such as Time Warner Inc.'s (TWX) AOL, which charges $23.90 per month.
Semtech Corp. (SMTC: news, chart, profile) said its first-quarter earnings fell to $10.8 million, or 14 cents a share, from $14.8 million, or 19 cents a share, a year ago. Revenue declined to $54.2 million from $61.9 million a year earlier. The analog and mixed signal semiconductor manufacturer said it expects second-quarter earnings of 14 cents a share. Revenue for the second quarter is expected to be flat sequentially.
Sunstone Hotel Investors (SHO: news, chart, profile) plans to begin a public offering of 9 million shares, consisting of 3 million primary shares and 6 million secondary shares being sold by affiliates of Westbrook Partners LLC. The underwriters will be granted a 30-day option to purchase up to an additional 1.35 million shares from the selling stockholders to cover over-allotments.
Terex Corp. (TEX: news, chart, profile) reported first-quarter net income of $30.3 million, or 59 cents a share, vs. earnings of $17 million, or 34 cents a share, in the same period last year. Sales at the diversified manufacturer rose to $1.45 billion from $1.04 billion. Terex also said that full-year 2005 earnings per share will be higher than it expected at the start of the year. The company sees earnings for the period ranging from $3.50 to $3.70 a share.
Westaff Inc. (WSTF: news, chart, profile) said that it swung to a second-quarter loss of $371,000, or 2 cents a share. Last year, the company posted earnings of $168,000, or a penny a share. Revenue rose to $138.3 million from $131.3 million a year earlier, the staffing services company said.
Whitehall Jewellers (JWL: news, chart, profile) reported a fiscal first-quarter loss of $4.9 million, or 35 cents a share, wider than the year-earlier loss of $3.7 million, or 27 cents a share, amid a decline in the gross profit rate. Revenue fell 2.8% to $71 million from last year's $73 million, while same-store sales declined 3.3%. The jewelry seller's stock closed Tuesday up 7 cents at $7.25.
</TD></TR><TR><TD>
Michael Baron is a reporter for MarketWatch in New York.
</TD></TR></TBODY></TABLE>
American International Group (AIG: news, chart, profile) Chief Executive Martin Sullivan said that the giant insurer won't give earnings guidance any more and its profit will be more volatile in the future. Sullivan's comments came after AIG restated five years of earnings and cut its 2004 net worth by more than $2 billion on Tuesday to correct accounting schemes that were designed to manipulate its results. Before AIG's accounting came under regulators' microscopes this year, the company was renowned for steady earnings growth in an industry that's regularly tested by big losses. See full story.
CBRL Group (CBRL: news, chart, profile) said May same-store sales Cracker Barrel Old Country Store restaurants rose 7.1% over the same period a year ago, amid a 5.1% increase in value of the average check and 3.9% growth in menu pricing. Cracker Barrel same-store retail sales fell 2.3%. Same-store sales at its Logan's Roadhouse restaurants rose 2.6%. The stock closed Tuesday up 16 cents at $40.72.
Cell Genesys (CEGE: news, chart, profile) named Sharon Tetlow to serve as its chief financial officer, replacing Matthew Pfeffler. Tetlow most recently was a venture partner at Apax Partners, a private equity firm. On Tuesday shares of the South San Francisco producer of cancer therapies fell 7 cents to $5.81.
Charter Financial Corp. (CHFN: news, chart, profile) said its board has approved a 40% increase in regular quarterly dividend to 35 cents a share from 25 cents. Shares of the West Point, Ga.-based firm, which is the majority owner of federal mutual holding company First Charter, closed Tuesday at $34.80, up 1.7%.
Delphi Corp. (DPH: news, chart, profile) was downgraded by J.P. Morgan to underweight.
Delta Air Lines (DAL: news, chart, profile) in a filing to the Securities and Exchange Commission said it's amended its credit facility with the GE Capital division of General Electric (GE: news, chart, profile) . GE will reduce the specified levels of earnings before interest, taxes, depreciation, amortization and aircraft rent that Delta is required to achieve, as Delta wanted a change due to historically high fuel prices. In return, GE increased the unrestricted funds that Delta is required to maintain to not less than $1 billion at all times. It previously required Delta to maintain not less than $1 billion in unrestricted funds at all times from March 1, 2005 through Oct. 31, 2005, and $750 million at all times thereafter.
Engineered Support Systems (EASI: news, chart, profile) reported fiscal second-quarter earnings of $19 million, or 44 cents a share, vs. earnings of $18.3 million, or 44 cents a share in the year-earlier period. Excluding discontinued operations, earnings would have been 46 cents a share, missing the average analyst estimate compiled by Thomson First Call of 53 cents a share, due primarily to production delays and greater-than-anticipated costs related to a major defense program. Ongoing revenue rose 26% to $263.8 million, topping analyst forecasts of $250.4 million. The military electronics company lowered its 2005 earnings estimate to $2.00 to $2.03 a share from $2.09 to $2.12. Revenue is now projected to be $1.02 billion to $1.05 billion, vs. analyst forecasts of $1.03 billion. The stock closed Tuesday up 61 cents at $39.
Brazilian low-cost airline GOL Linhas Aereas Inteligentes SA (GOL: news, chart, profile) said it reaffirmed its financial outlook for 2005, despite intense price competition in the second quarter. The airline still sees revenue of around R$3 billion ($1.24 billion), up 53% from 2004, and earnings of between R$2.85 and R$3.15 a share, representing earnings per share growth of around 40%.
Google (GOOG: news, chart, profile) shares rose in pre-market action after Credit Suisse First Boston lifted its price target on the Internet search company to $350 from $275. The firm said it believes the shares have further to go given the momentum in the company's core advertising revenue, the impact of new businesses like Gmail, Froogle and Local, and a valuation that is far from stretched relative to the company's growth rate. In addition, CSFB told clients that while data for the current quarter is just rolling it, it believes trends in volume and pricing are positive.
Hovnanian Enterprises (HOV: news, chart, profile) reported second-quarter profits 51% higher than a year ago and raised its earnings outlook for fiscal 2005 based on higher home sales and continued pricing power. The company said that net income was $106.1 million, or $1.62 a share, in the second quarter compared with $70.5 million, or $1.06 a share, during the year-ago period. Analysts polled by Thomson First Call had expected earnings of $1.61 a share. The Red Bank, N.J.-based homebuilder said total revenue increased 32% to $1.2 billion. See full story.
Kirby Corp. (KEX: news, chart, profile) said that its earnings forecasts for the second quarter and 2005 are unchanged at 65 to 70 cents and $2.45 to $2.55 per share, respectively. The Houston-based operator of inland tank barges and towing vessels also said it made a private placement of $200 million in senior notes due 2013. It said the placement replaces its 2003 senior notes, resulting in $1.4 million in annual interest savings.
Layne Christensen Co. (LAYN: news, chart, profile) said first-quarter net income rose to $2.7 million, or 21 cents a share, from $1.5 million, or 11 cents a share, in the year-ago quarter. The results beat the forecast for earnings of 16 cents a share of analysts polled by Thomson First Call. Revenue at the provider of services for the water, mineral, construction and energy sectors climbed 26.8% to $96.7 million on strong growth across all businesses.
MPS Group Inc. (MPS: news, chart, profile) said its board has approved the repurchase of an additional $65 million worth of its common stock. The Jacksonville, Fla., provider of staffing services said it has $9 million remaining under its previous $65 million authorization set in November 1999. The stock closed Tuesday at $9.38, up 5 cents.
Mylan Laboratories Inc. (MYL: news, chart, profile) said subsidiary Mylan Bertek Pharmaceuticals has received an approvable letter from the U.S. Food and Drug Administration on its new drug application for nebivolol, which is under review for the treatment for hypertension. Mylan said that final approval for nebivolol was contingent upon satisfying additional FDA requirements regarding certain aspects of the pre-clinical data and finalization of the labeling. "We believe that the data from the ongoing pre-clinical study will satisfactorily resolve the FDA's questions," said John O'Donnell, chief scientific officer for Mylan Laboratories. "We will be responding to the FDA in an expeditious manner to move forward with the hypertension approval process."
Nice Systems Ltd. (NICE: news, chart, profile) reiterated its forecast for second-quarter adjusted earnings in the range of 32 to 36 cents a share on revenue of $67 million to $70 million. For 2005, the producer of multimedia digital recording and quality management solutions said it anticipates adjusted earnings of $1.50 to $1.60 a share on revenue of $295 million to $300 million. The Dictaphone unit, whose purchase was closed today, will add $20 million to revenue and 10 cents to earnings, Nice said.
Nortel Networks Corp. (NT: news, chart, profile) swung to a loss in the first quarter, according to a filing with the Securities and Exchange Commission. The Canadian communications and networking equipment giant lost $49 million, or a penny a share, in the period ended March 31. That compares with net earnings of $59 million, or a penny a share, in the same period a year earlier. Revenues in the quarter rose to $2.54 billion from $2.44 billion. See full story.
Quest Software Inc. (QSFT: news, chart, profile) plans to purchase Lindon, Utah-based Vintela Inc. for about $56.5 million in cash. The deal is expected to close in the second quarter or early in the third quarter, the company said. The transaction is expected to reduce 2005 pro forma earnings by about 2 cents a share.
SBC Communications Inc. (SBC: news, chart, profile) plans to offer high-speed Internet access for $14.95 a month for new residential subscribers who order SBC Yahoo! DSL Express, making its broadband package cheaper than many competitors' dial-up services. The Wall Street Journal had reported the offer earlier Wednesday, saying more than half of the 77 million U.S. households with Internet access still use dial-up connections such as Time Warner Inc.'s (TWX) AOL, which charges $23.90 per month.
Semtech Corp. (SMTC: news, chart, profile) said its first-quarter earnings fell to $10.8 million, or 14 cents a share, from $14.8 million, or 19 cents a share, a year ago. Revenue declined to $54.2 million from $61.9 million a year earlier. The analog and mixed signal semiconductor manufacturer said it expects second-quarter earnings of 14 cents a share. Revenue for the second quarter is expected to be flat sequentially.
Sunstone Hotel Investors (SHO: news, chart, profile) plans to begin a public offering of 9 million shares, consisting of 3 million primary shares and 6 million secondary shares being sold by affiliates of Westbrook Partners LLC. The underwriters will be granted a 30-day option to purchase up to an additional 1.35 million shares from the selling stockholders to cover over-allotments.
Terex Corp. (TEX: news, chart, profile) reported first-quarter net income of $30.3 million, or 59 cents a share, vs. earnings of $17 million, or 34 cents a share, in the same period last year. Sales at the diversified manufacturer rose to $1.45 billion from $1.04 billion. Terex also said that full-year 2005 earnings per share will be higher than it expected at the start of the year. The company sees earnings for the period ranging from $3.50 to $3.70 a share.
Westaff Inc. (WSTF: news, chart, profile) said that it swung to a second-quarter loss of $371,000, or 2 cents a share. Last year, the company posted earnings of $168,000, or a penny a share. Revenue rose to $138.3 million from $131.3 million a year earlier, the staffing services company said.
Whitehall Jewellers (JWL: news, chart, profile) reported a fiscal first-quarter loss of $4.9 million, or 35 cents a share, wider than the year-earlier loss of $3.7 million, or 27 cents a share, amid a decline in the gross profit rate. Revenue fell 2.8% to $71 million from last year's $73 million, while same-store sales declined 3.3%. The jewelry seller's stock closed Tuesday up 7 cents at $7.25.
</TD></TR><TR><TD>
Michael Baron is a reporter for MarketWatch in New York.
</TD></TR></TBODY></TABLE>
