US HOT STOCKS: Stryker, Textron, United Rentals, US Airways -3-

21st Jul 2010 18:28

Ralcorp Holdings Inc. (RAH, $56.40, +$0.98, +1.77%) said it plans to offer $450 million in notes to finance its planned $1.2 billion American Italian Pasta Co. (AIPC, $52.98, +$0.02, +0.04%) acquisition. RC2 Corp. (RCRC, $16.42, +$1.33, +8.81%), which makes toys and infant-care products, posted second-quarter results that exceeded analyst estimates as international sales rose 12.8%. It also increased the lower end of its expected full-year earnings range. Seagate Technology Inc. (STX, $13.22, -$1.31, -9.02%) swung to a fiscal fourth-quarter profit and its operating results were the highest in the company's history but demand for hard-disk drives declined because of the debt crisis in Europe and slower consumer spending there and in the U.S. The computer disk-drive maker's results fell short of Wall Street's expectations. Stanley Black & Decker Inc.'s (SWK, $53.91, +$1.29, +2.45%) second-quarter earnings fell 34% on charges related to the $4.5 billion combination in March that formed the tool giant, though the results beat analysts' expectations. Stryker Corp.'s (SYK, $47.01, -$4.28, -8.34%) second-quarter profit grew 9.5% on an increase in sales of orthopedic implants and its MedSurg equipment, although revenue growth for the quarter fell short of Wall Street's expectations. Stryker's replacement hip and knee sales were soft, raising fresh questions about a sector that appeared on the mend. On Tuesday Johnson & Johnson (JNJ, $58.13, -$0.46, -0.78%) indicated that prices remain under pressure. Market heavyweight Zimmer Holdings Inc. (ZMH, $52.60, -$2.55, -4.62%), which doesn't have a hospital-products unit to play defense, traded lower. Smith & Nephew Plc (SNN, $42.59, -$2.64, -5.84%) and Wright Medical Group Inc. (WMGI, $15.24, -$0.74, -4.63%) also declined. Textron Inc. (TXT, $19.51, +$1.43, +7.88%) swung to a sharply higher second-quarter profit than analysts expected as sales increased from a prior period stung by restructuring charges. The maker of Cessna planes and Bell helicopters also boosted its 2010 profit target and raised its finance-receivables liquidation goal. Tidewater Inc. (TDW, $40.24, -$0.88, -2.14%) provided a preliminary range for fiscal first-quarter earnings per share that came in below analysts' expectations. The company, a provider of offshore supply vessels and marine-support services, expects to release its full results on Aug. 5. United Rentals Inc. (URI, $12.21, +$1.64, +15.52%) swung to a second-quarter profit on higher margins as demand increased for the company's smaller fleet. The equipment-rental company's results were better than Wall Street had expected. US Airways Group Inc.'s (LCC, $9.72, +$0.80, +8.97%) second-quarter profit soared above analysts' estimates as revenue recovered amid an industry upturn. VMware Inc.'s (VMW, $74.14, +$1.72, +2.38%) second-quarter profit more than doubled, beating analysts' estimates, as sales and margins rose sharply. The company lifted its full-year revenue forecast again and projected third-quarter revenue above analysts' estimate. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires July 21, 2010 13:28 ET (17:28 GMT)