Monro Muffler Brake Inc. (NASDAQ:
MNRO -
News) said third-quarter net income for the three months ended Dec. 23 rose 20% to $4.9 million or 32 cents a share, from $4.1 million, or 27 cents a share in the year-ago period. Analysts surveyed by Thomson First Call forecast earnings of 32 cents a share, on average. Sales grew 15% to $103.8 million, a record. Looking ahead, the Rochester, N.Y. retailer expects fourth-quarter earnings of 37-40 cents a share, compared to the First Call estimate of 40 cents a share.
NCR Corp. (NYSE:
NCR -
News) expects fourth-quarter per-share earnings of 91 cents or higher. The average earnings estimate of five analysts surveyed by Thomson First Call is 80 cents a share. NCR, of Dayton, Ohio, said it expects fourth-quarter revenue of more than $1.8 billion. The company also forecast 2006 per-share earnings at $2.04 or higher, before adjustments. The average estimate of analysts is $1.97 a share. NCR expects 2007 earnings of $2.40 to $2.50 a share. The 2007 average earnings estimate of analysts is $2.46 a share.
Netflix (NASDAQ:
NFLX -
News) shares rose after the company unveiled a feature allowing subscribers to immediately watch movies and television series on their computers. The company plans to make the option available to subscribers in a phased roll-out over the next six months.
Nokia (NYSE:
NOK -
News) was upgraded to buy from sell at Goldman Sachs. The firm said it believes a perfect storm of negative news, including a profit warning at U.S. rival Motorola and the launch of Apple's iPhone, has coincided with the bottom of Nokia's profit cycle, driving the stock's 17% underperformance relative to the FTSE Europe since July. The broker, however, said it expects the stock to rebound from there, especially after the Finnish company posts quarterly results next week. "We have high confidence that Nokia will post solid fourth-quarter earnings of 0.27 euro a share, allowing 2007 EPS to bottom, while new products should drive a recovery in sentiment as well as average selling prices and gross margins during the first half of 2007," the firm said.
PerkinElmer Inc. (NYSE:
PKI -
News) was upgraded to buy from neutral at UBS. The firm also lifted its price target on the stock to $27 from $23.
Phoenix Technologies Ltd. (NASDAQ:
PTEC -
News) was in focus after Ramius Capital Group's Admiral Advisors unit Tuesday disclosed a revised bid to acquire the company for $5.25 per share in cash. The firm, which is Phoenix's largest shareholder, said its non-binding offer isn't subject to financing but does carry other conditions, including completion of due diligence.
PW Eagle (NASDAQ:
PWEI -
News) agreed to be acquired by J.M. Manufacturing for $400 million, or $33.50 per share in cash. PW Eagle in May announced it was considering strategic alternatives. The pipe maker's stock closed at $29.86 on Friday.
Retalix Ltd. (NASDAQ:
RTLX -
News) affirmed its estimate that fourth-quarter net income would come in at more than $1.6 million, adjusted net would exceed $4 million, and revenue would exceed $54 million. The adjusted-profit figure excludes equity-based compensation costs of $1.7 million and acquisition-related amortization of $700,000, after taxes, Retalix said in a statement.
Sirius Satellite (NASDAQ:
SIRI -
News) was upgraded to overweight from neutral at J.P. Morgan. The firm made the same call on XM Satellite Holdings (NASDAQ:
XMSR -
News). J.P. Morgan said it is now assuming that growth rates for the companies have peaked, but even with cautious growth assumptions, the broker said it sees Sirius having more than 15 million subscribers by 2010 and XM having more than 14 million subscribers. These subscription levels will be largely due to deals with automakers to get satellite radio preinstalled in new cars. "We see potential upside as the momentum in the industry appears to be towards making satellite radio a standard feature, which is not yet included in our models," J.P. Morgan said. It added there is also the possibility that the two companies could attempt a merger in 2007, though regulatory approval would not be certain. XM, for its part, was also downgraded to neutral at Banc of America Securities.
Smith & Wollensky Restaurant Group (NASDAQ:
SWRG -
News) shares soared after Landry's Restaurants (NYSE:
LNY -
News) offered to acquire the company for $7.50 per share. Landry's noted this consideration represents roughly a 50% premium to Friday's close for Smith & Wollensky shares at $5.03 each. "We believe that a combination of the two companies would be in the best interest of the stockholders of both companies," said Tilman Fertitta, Landry's chairman, president and CEO, in a statement.
Taleo Corp. (NASDAQ:
TLEO -
News) was upgraded to overweight from neutral at J.P. Morgan.
TD Ameritrade (NASDAQ:
AMTD -
News) said its first quarter net income rose to $145.6 million, or 24 cents a share from $86 million, or 21 cents a share a year ago. In the latest quarter, there were 612.8 million average shares outstanding, compared to 417.1 million shares a year ago. Net income in the latest quarter included a gain of $614,000 from the sale of investments. Net revenues in the first quarter rose to $535.2 million, compared to $277.3 million a year ago. Analysts polled by Thomson First Call had, on average, expected the company to earn 22 cents a share on revenue of $517 million. The company also reaffirmed the $1.10 a share midpoint in its estimated outlook for earnings for fiscal 2007.
USI Holdings Corp. (NASDAQ:
USIH -
News) agreed to be acquired by GS Capital Partners, a private equity affiliate of Goldman Sachs (NYSE:
GS -
News) for $17 per share. The transaction is valued at roughly $1.4 billion, including debt repayment. The $17 per share consideration represents a 20.5% premium to the average closing price for USI's common shares during the 30 calendar days prior to Oct. 24.
WCI Communities (NYSE:
WCI -
News) shares rallied after billionaire financier Carl Icahn said in a regulatory filing that he's increased his stake in the company, and has accumulated about 14.6% of the company's outstanding shares. Icahn said he plans to contact the company to get its views "on how to unlock the inherent value of the shares."
XTL Biopharmaceuticals Ltd. (NASDAQ:
XTLB -
News) shares rose after the company said its subsidiary has signed an agreement with Dov Pharmaceutical Inc. (Other OTC:
DOVP.PK -
News) to in-license the worldwide rights for Bicifadine for the treatment of neuropathic pain. Under the terms of the deal, XTL will make an up-front payment of $7.5 million in cash, in addition to milestone payments of up to $126.5 million in cash and/or ordinary shares over the life of the license. XTL said it must also pay royalties on sales of the product.
Zevex International (NASDAQ:
ZVXI -
News) agreed to be acquired by Moog (AMEX:
MOG.TO -
News) for $13 per share for a maximum purchase of $83.8 million. Following the merger, expected to close in March, Zevex will become a part of Moog's Medical Devices Segment.
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