US HOT STOCKS: Chevron, Emcor, Infosys, LaSalle Hotel -2-

13th Jul 2010 15:35

Cerner Corp. (CERN, $81.37, +$1.06, +1.32%) said second-quarter results will be at or above prior expectations as the health-care information-technology company announced President Trace Devanny is stepping down after 11 years in the post to pursue other opportunities. Chairman and Chief Executive Neal Patterson will assume the president's post. MKM Partners upgraded Cheesecake Factory Inc. (CAKE, $25.46, +$1.10, +4.52%) to buy from neutral on valuation, saying shares of the restaurant chain have yet to price in a 2011 recovery and concerns about a steep drop in sales may be overdone. Chevron Corp. (CVX, $73.03, +$1.18, +1.64%) said it expects second-quarter profit to be higher than the previous quarter, driven by significantly higher earnings from its refining and sales operations because of stronger refining margins as well as the stronger dollar. The second-largest U.S. oil company by market value after Exxon Mobil Corp. (XOM, $59.14, +$0.20, +0.34%) also said in an interim update that earnings in its production and exploration operations will be in line with its first quarter. CSX Corp.'s (CSX, $53.59, +$1.13, +2.15%) second-quarter profit jumped 47% on higher revenue due to volume gains across all major markets. That helped the railroad operator top Wall Street's expectations. Dr Pepper Snapple Group Inc.'s (DPS, $39.25, +$0.67, +1.74%) board has added $1 billion to the beverage company's stock-buyback effort, citing confidence in generating future cash. Shares of Emcor Group Inc. (EME, $25.02, +$1.26, +5.30%) climbed after FBR Capital Markets raised its stock-investment rating to outperform from market perform, predicting the electrical contractor may top consensus estimates for the second quarter and raise its full-year guidance. Hi-Tech Pharmacal Co.'s (HITK, $21.35, -$1.26, -5.57%) fiscal fourth-quarter earnings rose 27% as the pharmaceutical company's sales improved thanks to a prior-year acquisition. But profit missed analysts' expectations. Infosys Technologies Ltd. (INFY, $60.22, -$2.80, -4.44%) Tuesday reported a 2.4% fall in its first-quarter net profit, missing analysts' expectations, but raised its outlook for the current fiscal year, reflecting the software services exporter's confidence in a sustained recovery in demand for outsourcing services. Stifel Nicolaus raised its rating on Insituform Technologies Inc. (INSU, $23.34, +$1.85, +8.61%) to buy from hold, saying the maker of pipes to fix sewers and tunnels is seeing higher revenue and profit in sewer rehab, at Titeliner and at Bayou Cos and its major joint venture. The firm said the company's new CEO has had a "significant, positive impact" on the company in terms of profitability and long-term growth strategy. KLA-Tencor Corp. (KLAC, $30.45, +$0.94, +3.19%) boosted its quarterly dividend by two-thirds as the chip-equipment maker said it has "strong cash flows" and a "solid balance sheet." L-1 Identity Solutions Inc. (ID, $7.34, -$0.17, -2.26%) warned its revenue for the first half of the year would fall below its previously provided guidance, though it said adjusted earnings would be within previous expectations. Baird boosted its rating on several lodging real-estate investment trusts, saying it expects stronger-than-previously-assumed revenue per available room, or Revpar, trends during the second quarter. The firm boosted its rating on LaSalle Hotel Properties (LHO, $21.67, +$0.99, +4.79%) to neutral and Sunstone Hotel Investors Inc. (SHO, $9.96, +$0.41, +4.29%) and Marcus Corp. (MCS, $10.00, +$0.74, +7.99%) to outperform. Magellan Midstream Partners LP (MMP, $48.57, +$0.42, +0.87%) agreed to acquire some storage and pipeline assets from BP PLC's (BP, $37.08, +$0.32, +0.87%) North American pipelines business for $289 million, in a move it expects will aid the development of its East Houston terminal into a key distribution point. MoneyGram International Inc. (MGI, $2.42, +$0.06, +2.54%) hired James Shields as chief financial officer, effective Tuesday. He succeeds Jeffrey Woods, who left the second-largest U.S. money-transfer service behind Western Union Co. (WU, $15.98, +$0.08, +0.50%) in January for "personal reasons" after only five months on the job. (MORE TO FOLLOW) Dow Jones Newswires July 13, 2010 10:35 ET (14:35 GMT)