US HOT STOCKS: Carnival, Extreme Networks, Steelcase -2-

22nd Jun 2010 15:35

Carnival Corp. (CCL, $33.83, -$0.91, -2.62%) reported better-than-expected fiscal second-quarter earnings, but projected third-quarter earnings below estimates. The cruise line operator said unfavorable changes in currency exchange rates have hurt earnings, and fuel costs for the third quarter are expected to cost 9 cents more a share than in the previous year. Citi cut the rating on Entergy Corp. (ETR, $75.29, -$2.09, -2.70%) to hold from buy on lower expectations for its merchant nuclear power plants in the Northeast. A dip of about 10% in regional forward power prices drives cuts into earnings projection for 2012, amounting to $8-a-share reduction in equity value. Also, Vermont targets Entergy's nuclear plant in state for closure, which Citi values at around $4-a-share. Extreme Networks Inc. (EXTR, $2.97, +$0.11, +3.85%) was selected by Austria's government to build a high-performance network and provide its data services infrastructure for eight states and Vienna. Respiratory-products company Lincare Holdings Inc. (LNCR, $32.70, +$1.94, +6.31%) said it would begin paying quarterly cash dividends, calling it a show of confidence in the company's long-term prospects. The move comes after a three-for-two stock split in the form of a dividend last week. PetroQuest Energy Inc. (PQ, $8.08, -$0.26, -3.12%) has risen sharply over the last month and neared Capital One's price target, leading the firm to downgrade the independent energy company to neutral from add and recommending profit taking. PetSmart Inc. (PETM, $32.12, +$0.44, +1.39%) raised its quarterly dividend 25% and authorized a new $400 million share-repurchase program because the nation's largest retailer of services and products for pets said it generates more cash than it needs to reinvest in the business. Premier Exhibitions Inc. (PRXI, $1.17, -$0.15, -11.36%) said it hired an adviser to assess strategic alternatives for the company after its largest shareholder said it began looking for a single buyer of its 46% equity investment in Premier's shares. The shareholder, Sellers Capital Master Fund Ltd., has said it intends to return all capital to its investors in the next 12 to 18 months. But it told Premier--which tours exhibitions of Titanic artifacts, "Star Trek" memorabilia and a collection of human remains--that it will not sell any shares in the open market. Steelcase Inc. (SCS, $7.91, +$0.27, +3.53%) posted a fiscal first-quarter loss as the office-furniture maker recorded a $11.4 million charge related to the government's health-care reform legislation, although margins improved from cost-cutting. The office-products company also projected a second-quarter profit of a penny to 5 cents on revenue of $560 million to $585 million. Analysts surveyed by Thomson Reuters expected 3 cents and $576 million, respectively. Uranium Resources Inc. (URRE, $0.46, -$0.06, -10.70%) disclosed terms of its heavily dilutive stock offering, which was priced at a sharp 19% discount to Monday's close. That came after the stock fell 15% Monday amid the late Thursday disclosure the mining company planned to sell up to 25 million shares. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires June 22, 2010 10:35 ET (14:35 GMT)