Breaking News

Dollar Tree Agrees to Buy Family Dollar for $74.50 a Share
Tweet TWEET

Bank of America, BJ’s, Nike, Shaw Group: U.S. Equity Preview

Shares of the following companies may have unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 7:45 a.m. in New York.

Bank of America Corp. (BAC) jumped 6.2 percent to $11.49. The biggest U.S. bank by assets agreed to settle claims over soured mortgages for $8.5 billion after a group of bondholders including BlackRock Inc. (BLK) demanded refunds.

BJ’s Wholesale Club Inc. (BJ) gained 4.7 percent to $50.35. The warehouse-club operator said it has entered into a definitive agreement to be acquired by affiliates of Leonard Green & Partners LP and funds advised by CVC Capital Partners in an all-cash transaction of $51.25 a share, or about $2.8 billion.

Build-A-Bear Workshop Inc. (BBW) slipped 0.8 percent to $6.55. Crescendo Partners II LP said in a securities filing that it reduced its stake in the chain of make-your-own stuffed animal stores to 4.4 percent from 5.79 percent.

Family Dollar Stores Inc. (FDO) fell 1.1 percent to $52.45 The North Carolina-based discount retailer posted third- quarter earnings of 91 cents a share, missing the 95 cent average of analyst forecasts in a Bloomberg survey. The company revised the projection for its fiscal 2011 profit to no more than $3.16 a share from as much as $3.23.

General Mills Inc. (GIS) declined 1.9 percent to $36.50. The maker of Cheerios cereal said fiscal 2012 profit will be no more than $2.62 a share, less than the average analyst estimate of $2.68. The company said it faces “significantly” higher costs for ingredients and energy.

Nike Inc. (NKE) increased 0.4 percent to $90.25. Chief Financial Officer Donald Blair forecast the world’s largest sporting-goods company’s gross margin will fall at least 100 basis points in 2012. The company also said earnings will grow at about 15 percent and revenue will climb at a rate of almost 10 percent through 2015.

Progress Software Corp. (PRGS) lost 6 percent to $21.89. The maker of business programs forecast third-quarter earnings of no more than 36 cents a share, falling short of the 41-cent average analyst projection. Revenue also will miss estimates, the company said.

Shaw Group Inc. (SHAW) dropped 13 percent to $28. The Baton Rouge, Louisiana-based builder of power plants forecast 2012 sales of $6.2 billion to $6.5 billion, below the $7.22 billion average of analysts tracked by Bloomberg.

Synnex Corp. (SNX) decreased 1.5 percent to $31. The distributor of computer products said third-quarter earnings won’t be higher than 92 cents a share, lower than the average analyst estimate of 94 cents. The company also forecast revenue of $2.54 billion to $2.64 billion, compared with $2.64 billion projected by analysts.

TransDigm Group Inc. (TDG) : The Cleveland-based aircraft-parts manufacturer said revenue from continuing operations will be as much as $1.192 billion for its 2011 fiscal year, compared with the previous forecast of up to $1.189 billion. The company’s revenue from continuing operations was $828 million in fiscal 2010.

United States Steel Corp. (X) rose 2.7 percent to $44.50, while AK Steel Holding Corp. (AKS) gained 2.4 percent to $15.10. The steelmakers were raised to buy from hold by David Martin, an analyst at Deutsche Bank AG.

To contact the reporters on this story: Victoria Stilwell in New York at vstilwell@bloomberg.net; Cecile Vannucci in New York at cvannucci1@bloomberg.net

To contact the editor responsible for this story: at nbaker7@bloomberg.net.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.