(4 p.m. added Dave & Buster, a line at the end of PETsMart about investment rec changes, Candela, and EPIX)
Johnson Controls (JCI ) agreed to acquire York International (YRK ) for $3.2 billion, including the assumption of about $800 million of York debt. York shareholders will receive $56.50 cash per share. Shares of York surged on the news.
TiVo (TIVO ) posted breakeven second quarter results, vs. a 13 cent loss per share one year earlier, on slightly lower net revenue. The company sees a $20 million to $25 million loss during the third quarter on services and technology revenue of between $41 million and $43 million. Adams Harkness cut its investment recommendation on the stock to market perform from buy.
American Pharmaceutical (APPX ) said that it expects a delay in the resumption of manufacturing at a plant to affect the sale of a limited number of key generic products. The company sees $10 million in incremental, unabsorbed third quarter expenses, as well as a $15 million third quarter sales impact on generic products.
Six Flags (PKS ) shares rose after it said its board voted to seek proposals from third parties for a possible sale of the amusement park company. There are plans to pursue the auction process and invite the investment company Red Zone LLC to participate. S&P upgraded Six Flags to buy from hold.
Dave & Buster's (DAB ) shares fell, after the restaurant company said it sees lower-than-expected second quarter results due to disappointing performance at nine recently acquired Jillian's stores. Dave & Buster's sees an 8 to 9 cent second quarter loss (basic,) and cut its its fiscal 2006 earnings per share estimate to between 64 cents and 70 cents from the $1.15 to $1.23 range.
Coldwater Creek (CWTR ) shares rose after the company posted second quarter earnings per share of 11 cents, vs. 6 cents, on a 39% rise in sales.
Candela (CLZR ) shares fell after the medical laser company posted fourth quarter earnings per share of 14 cents, vs. 19 cents. Candela said its higher costs, expenses, and lower other income offset a 13% rise in revenue. Needham trimmed its estimate on the company but kept its recommendation at buy.
EPIX Pharmaceuticals (EPIX ) shares climbed after the imaging agent developer announced the publication of positive results from two clinical trials of the vascular imaging drug MS-325.
Pattersoncos (PDCO ) shares fell, after the health care distributor posted first quarter earnings per share of 31 cents, vs. 29 cents, on a 3.1% rise in sales. The company cited basic dental equipment sales growth that was below plans in the first quarter. Pattersoncos sees 35 cent to 37 cent earnings per share in the second quarter. S&P kept its sell recommendation on the company.
InfoUSA (IUSA ) rejected the $11.75 per share cash acquisition bid made by an entity controlled by its chairman and CEO Vin Gupta. Gupta is withdrawing his bid for the data processing company.
Phillips-Van Heusen (PVH ) posted second quarter earnings per share (excluding items) of 16 cents, vs. 24 cents, on 18% higher revenue. The clothing company boosted its full year 2006 earnings per share guidance to a range of $1.75-$1.80 (excluding items) from $1.70-$1.75. It changed revenue guidance to a range of $1.88 billion to $1.9 billion, from a range of $1.81 billion to $1.83 billion. PETsMART (PETM ) shares dropped after the pet-products company posted second quarter earnings per share of 24 cents, vs. 19 cents, on a 4.2% same-store sales rise and a 12% rise in revenue. Meanwhile, the company expects 21 cents third quarter earnings per share on a same-store sales rise of 2% to 3%. For the full year ending January, 2006, PETsMART sees $1.25 to $1.26 earnings per share (including gains) on a same-store sales rise of 4%. S&P tied the stock drop to its guidance and maintained its investment recommendation at strong buy, while Wedbush Morgan cut its estimates.
Vimpel Communications (VIP ) posted second quarter earnings per American Depositary Receipt of 78 cents, vs. 56 cents, on a 59% rise in revenue. The Russian telecom noted continued rapid subscriber growth combined with the effects of economies of scale, efficient cost controls, and lower acquisition costs per subscriber.
Louisiana Pacific (LPX ) agreed to buy back $150 million of its common stock from a financial intermediary, after having previously announced a plan to repurchase up to 20 million shares. The forest products company expects to complete its repurchase plan in the first quarter, with the number of shares to be determined.