EDS Shares Rise on Profit

Several retailers post disappointing profits; EDS results swing to a profit; plus more of Thursday's stocks in the news

CheckFree (CKFR ) shares moved higher Thursday after the company posted fourth quarter earnings per share (non-GAAP) of 39 cents, vs. 30 cents, on a 27% revenue rise. The company sees $1.50 to $1.54 fiscal 2006 earnings per share (non-GAAP).

Sara Lee (SLE ) posted $0.19 fourth quarter loss per share (including a 55-cent charge) vs. 44 cents earnings per share one year earlier, on 5% lower sales. The consumer-goods outfit set a $2 billion stock buyback.

Electronic Data Systems (EDS ) posted second quarter earnings per share of 9 cents, vs. a 3-cent loss (pro forma), despite a slight revenue decline. The company expects 2006 pro forma earnings per share of $1.00 or more.

Warner Music Group (WMG ) shares rose after the company posted a third quarter loss per share (adjusted) of 27 cents, vs. a 76-cent loss, on a 2.2% revenue rise. The company says it encouraged to see digital gains outpacing physical business.

Friedman Billings reportedly downgraded Watts Water Technologies (WTS ) to market perform from outperform. On Wednesday, the company posted second quarter earnings per share of 44 cents (excluding a charge).

New Century Financial (NEW ) shares fell after the company posted second quarter earnings per share of $1.65, vs. $2.46, despite a 63% rise in net interest income. The company revised its 2005 EPS guidance to $8.25 to $9.00.

Amvescap (AVZ ) shares fell after CI Fund Management said it cannot develop a proposal for a transaction with Amvescap at this point in time without full cooperation of Amvescap and its board.

S&P thinks shares of RealNetworks (RNWK ) could experience weakness Thursday, following recent indication that Amazon.com (AMZN ) is poised to enter the online music-service category. S&P reiterates hold.

Abercrombie & Fitch (ANF ) posted 22% higher July same-store sales and 33% higher total sales.

Dynamic Material (BOOM ) shares rose after the company reported second quarter earnings per share of 35 cents, vs. a 9-cent loss, on a 53% sales rise.

Aeropostale (ARO ) cut its 16 cents to 19 cents second quarter earnings per share guidance to 12 cents to 13 cents on a 4.2% decline in July same-store sales.

Human Genome Sciences (HGSI ) plans to offer $230 million aggregate principal amount of convertible subordinated notes.

Alliant Techsystems (ATK ) posted first quarter earnings per share of 99 cents, vs. 72 cents, on a 17% sales rise. The company raised its $3.0 billion fiscal 2006 sales guidance to $3.1 billion and its $4.35 to $4.50 earnings per share guidance to to $4.48 to $4.58.

Pier 1 Imports (PIR ) posted 7.7% lower July same-store sales and 3.1% lower total sales. Based on weaker merchandise margins, the retailer sees second quarter results at the low end of its guidance range of 3 cents earnings per share to a 7-cent loss.

Caremark Rx (CMX ) posted second quarter earnings per share from operations of 47 cents, vs. 30 cents, on a 13% revenue rise. The company sees $1.95 to $1.97 earnings per share for 2005. It also set a $1.25 billion stock buyback.

Peet's Coffee (PEET ) posted second quarter earnings per share of 18 cents, vs. 13 cents, on a 24% rise in revenue. It sees third quarter earnings per share of 14 cents to 15 cents on a 20% rise in revenue. It also confirmed its 2005 guidance of 74 cents earnings per share on a 20% to 21% sales rise.

Bombay Company (BBA ) posted 3% lower July same-stores sales and a 3% total sales decline. The company says its direct business was much softer than expected.

Donnelley (R.R.) (RRD ) posted second quarter earnings per share of 42 cents, vs. a 6-cent loss (GAAP), on a 4.8% sales rise. The company raised its 2005 non-GAAP earnings per share from continuing operations forecast by 10 cents, to $2.17.

FEI Co. (FEIC ) posted a second quarter loss per share of $2.01, vs. 8 cents earnings per share (GAAP), on a 1% sales decline and various charges. It sees an $8 million to $12 million third quarter pretax loss (including charges), with sales flat to down slightly sequentially. It also sees fourth quarter revenue up 10% over the third quarter.

Tekelec (TKLC ) posted second quarter earnings per share of 8 cents, vs. breakeven results (GAAP), on a 39% revenue rise.

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