BEFORE THE BELL -2: US HOT STOCKS TO WATCH

25th Jun 2010 13:40

Among the companies whose shares are expected to actively trade in Friday's session are Oracle Corp. (ORCL), Research In Motion Ltd. (RIMM) and BP Plc (BP, BP.LN). Oracle's fiscal fourth-quarter profit climbed 25% as the business-software giant benefited from new revenue from its Sun Microsystems Inc. acquisition, as well as strong demand for software licenses. Shares rose 4.4% to $23.20 in premarket trading. Research In Motion, maker of the Blackberry smartphone, shipped a record 11.2 million devices in the fiscal first quarter and reported per-share earnings that beat analysts' estimates. But revenue fell short of analysts' expectations. Shares fell 5.4% to $55.40 in premarket trading. BP's American depositary shares fell 3.4% to $27.77 premarket, as a Nomura analyst suggested the company needs to sell stock to assure counter-parties that it has the financial health to withstand the growing cost of cleaning up the Gulf of Mexico oil spill. Bank stocks rose premarket after Congress reached an agreement on details of the financial regulation overhaul. While large financial companies are facing a tighter leash, investors don't seem too worried. Rochdale's Dick Bove says banks will likely be able to get around the regulations by setting up separate entities and moving them offshore. Following a sharp sector selloff Thursday, JPMorgan Chase & Co. (JPM) was up 1.8% to $38.70, Goldman Sachs Group Inc. (GS) rose 1.5% to $137.00, Morgan Stanley (MS) climbed 1.6% to $24.65 and Bank of America Corp. (BAC) increased 1.7% to $15.28. KB Home's (KBH) fiscal second-quarter loss narrowed significantly following prior-year charges and the first increase in deliveries in more than three years, but orders declined 23% in the wake of the expiration of a federal tax credit for buyers. Shares fell 3.4% to $11.80 in premarket trading. FuelCell Energy Inc. (FCEL), a maker of fuel cells for electric-power generation, announced plans to sell an undisclosed amount of stock for product development and other efforts. The sale would come despite the stock being down 60% this year. Shares fell 6.7% to $1.40 in premarket trading. Watch List Accenture PLC's (ACN) fiscal third-quarter profit rose 11% on strong growth in its products and financial services segments. The consulting and outsourcing company's results topped expectations. Adobe Systems Inc. (ADBE) said it has entered into structured stock-repurchase agreements with large third-party financial institutions to buy back $400 million of its stock. AeroVironment Inc.'s (AVAV) fiscal fourth-quarter earnings more than doubled as the aircraft manufacturer's success in growing sales and improving margins vaulted results above analysts' expectations. But the company predicted revenue for the just-begun fiscal year mostly below analysts' projections. A.O. Smith Corp. (AOS), which makes electric motors and water heaters, lowered its full-year profit projection by 15 cents to account for the costs of cleaning up flood damage at a Tennessee plant. Armstrong World Industries Inc. (AWI) named Matthew J. Espe as the 150-year-old floor maker's chief executive and president, bringing a resume that includes a stint running General Electric Co.'s (GE) lighting business. AZZ Inc.'s (AZZ) fiscal first-quarter profit fell 36% on slumping product demand for the maker of electrical and industrial items and provider of galvanizing services. Celgene Corp. (CELG) said Japan's health ministry approved its Revlimid treatment for plasma-cell cancer patients who have received at least one prior therapy. Duke Energy Corp. (DUK) said it agreed to sell a 50% stake in its fiber-optic networks business to asset manager Alinda Capital Partners LLC for $137 million. Finish Line Inc. (FINL) swung to a fiscal first-quarter profit--its third consecutive quarter in the black--as the athletic outfitter posted a double-digit increase in same-store sales and improved margins. Results topped expectations, and Chief Executive Glenn Lyon touted the company's expense management and inventory efficiency. But he said customer traffic continued to be inconsistent and Finish Line remained focused on premium brands. FSI International Inc. (FSII) swung to a fiscal third-quarter profit--its second in a row after a string of losses--on a big jump in revenue and sharply higher margins. But the microelectronics-equipment maker's fourth-quarter earnings guidance was in line with analysts' expectations and the revenue outlook fell short of consensus. H&R Block Inc. (HRB) fiscal fourth-quarter profit fell 2.3% while earnings from continuing operations surprised analysts by growing on a per-share basis, as the nation's largest tax preparer's drop in returns outpaced the industry's overall decline. Mentor Graphics Corp. (MENT) said its board has adopted a shareholder rights plan that calls for one incentive stock-purchase right to be distributed for each share held as of the close of business July 6. Merck & Co. (MRK) and Vancouver-based Cardiome Pharma Corp. (CRME, COM.T) said a committee of European regulators has recommended marketing approval for Brinavess, a treatment for the most common form of abnormal heart rhythm. NewLead Holdings Ltd. (NEWL) signed a letter of intent to potentially acquire up to five dry-bulk vessels for a combined $148 million, including assumed debt and shipyard financing, continuing the recent trend of strong shippers bolstering their fleets. The board of Symyx Technologies Inc. (SMMX) Thursday again spurned Certara Corp.'s overtures to buy the science researcher, recommending shareholders vote for a different merger. Synnex Corp.'s (SNX) fiscal second-quarter profit climbed 33% on higher sales and margins, and the results matched guidance. But the high end of the information-technology distributor's third quarter earnings per share guidance just matched analysts' estimates. The third quarter revenue guidance range was slightly below analysts' expectations. Tibco Software Inc.'s (TIBX) fiscal second-quarter profit jumped 27% on higher revenue, helping the business-software company post better-than-expected results. The provider of real-time infrastructure software for the Internet and enterprise networks had benefited from stronger margins over the past several quarters, although the metric fell to 9.4% from 9.8% in the latest quarter on restructuring costs. Wabco Holdings Inc. (WBC) boosted its 2010 expectations as worldwide demand for the electronic braking systems maker continues to pick up. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires June 25, 2010 08:40 ET (12:40 GMT)