Genentech Profit Climbs

PepsiCo posts higher net; Manor Care sees EPS shortfall; plus more of Tuesday's stocks in the news

Genentech (DNA ) posted second quarter earnings per share (non-GAAP basis) of 30 cents, vs. 19 cents one year earlier, on a 35% rise in operating revenue and 39% higher total product sales.The biotech outfit expects 2005 non-GAAP EPS to increase by more than 35%.

PepsiCo (PEP ) posted second quarter EPS of 70 cents, vs. 61 cents, on a 9% revenue rise.

Manor Care (HCR ) sees lower-than-expected second quarter EPS of 41 cents to 43 cents, including "unusual" items. The company cites a weaker-than-expected census during the last part of quarter.

Hudson United Bancorp (HU ) agreed to be acquired by TD Banknorth (BNK ) in a deal valued at $1.9 billion (about 51% in Banknorth stock and 49% cash). The deal values Hudson United at $42.78 per share.

Open Text (OTEX ) sees total revenues for the fourth quarter of $108 million to $112 million, vs. prior guidance of $115 million to $125 million. S&P cut its estimates and reiterates its hold opinion. CIBC World downgraded the shares to sector perform from sector outperform.

Host America (CAFE ) shares more than doubled Tuesday after the company said it will start surveying 10 Wal-Mart stores in the Southwest, in prepartion for installation of its LightMasterPlus on fluorescent lighting system of each store. Details of the surveys will be released as they become available.

NCR (NCR ) sees better-than-expected second-quarter EPS of 64 cents(including certain items) on $1.47 billion in revenue. S&P reiterates hold, noting that revenue guidance was below its estimate.

FEI Co. (FEIC ) sees lower-than-expected breakeven second quarter EPS (non-GAAP). It sees third quarter revenue similar to the second quarter. FEI will restructure and consolidate operations in order to focus on its three major markets; it estimates related charges to be about $15 million.

Bear Stearns upgraded its recommendation on DreamWorks Animation (DWA ) to peer perform from underperform. On July 11, the animation studio cut guidance and announced an SEC informal probe.

Alcatel (ALA ) posted second quarter EPS (preliminary) of 16 cents on an 8% revenue rise.

Since receipt of an unsolicited acquisition offer (reported July 7), WPT Enterprises (WPTE ) has attempted to substantiate the offer, but has been unable to do so. Assuming no further contact is forthcoming, the offer will lapse at 5:30 p.m. Tuesday. contact, offer lapses 5:30 pm today. Merriman Curhan says buy on weakness.

Acording to a Wall Street Journal report, Federal regulators plan to cite KB Home (KBH ) for limiting the ability of home buyers to sue the company over alleged home defects, according to people familiar with the situation.

Darden Restaurants (DRI ) says June same-restaurant sales at Olive Garden were up 10% to 11%, same-restaurant sales at Red Lobster were up approximately 9%.

Wedbush Morgan raised its estimates and target price on Charlotte Russe (CHIC ) and reiterates its buy rating on the stock.

Acording to a Wall Street Journal report, as Disney (DIS ) explores the fate of its roughly $3 billion radio station and network group, it is considering a multi-step process to both extract cash and structure a tax-free spinoff to Disiney shareholders.

Infosys (INFY ) posted first quarter EPS of 45 cents, vs. 31 cents, on a 42% revenue rise. It sees second quarter EPS of 46 cents to 47 cents on $506 million to $509 million in revenue.

Colgate-Palmolive (CL ) will sell its North American heavy-duty laundry detergent brands to Phoenix Brands LLC. The deal, which is expected to close in the 2005 third quarter, will generate a one-time, after-tax gain of $60 million.

Ameritrade Holdings (AMTD ) posted third quarter EPS of 18 cents, vs. 15 cents, on a 6.5% revenue rise. It sees full-year fiscal 2005 EPS of 75 cents to 80 cents.

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