HP Profit Rises

Vivendi posts higher earnings, raises guidance; Tenet Healthcare settles litigation; plus more stocks in the news Wednesday

Hewlett-Packard (HPQ) posts 51 cents vs. 33 cents second quarter earnings per share (EPS; based on (Generally Accepted Accounting Principles) on a 4.6% revenue rise. It sees 41 cents to 44 cents third quarter GAAP EPS on revenue of $21.75 billion and $1.87 to $1.91 fiscal year 2006 EPS on revenue of $91 billion.

Vivendi (V) posts €0.51 vs. €0.46 first quarter adjusted EPS on a 5.7% revenue rise. It raises 2006 adjusted net income growth guidance to 16%, about €2.4 billion. It sees €3.5 billion to €4 billion 2011 adjusted net income.

Tenet Healthcare (THC) reaches a civil settlement with the US Attorney in San Diego to resolve a criminal case. To avert a third criminal trial and potential civil liabilities, Tenet Healthcare is to pay $21 million to resolve potential civil claims by the government.

Applied Materials (AMAT) posts 26 cents vs. 18 cents second quarter EPS (GAAP) on a 21% sales rise. It sees 5% to 10% sequential revenue growth in the third quarter and EPS of 28 cents to 30 cents.

Nike (NKE) says it will pay Alon International S.A. $52.5 million in damages plus legal fees as a result of an arbitration ruling arising from a contract dispute between Nike's Converse subsidiary and Alon.

Schultze Asset Management LLC says in a Securities and Exchange Commission filing that it increased its stake in Movie Gallery (MOVI) to 13.4% from 8.6%.

Circuit City (CC) says that based on strong sales performance quarter to date, it continues to expect breakeven earnings in the first quarter. It expects Web-originated sales to reach $1 billion in fiscal year 2007, and direct channel sales to grow at a double-digit rate annually over fiscal year 2008 to fiscal year 2011.

Merge Technologies (MRGE) Pres., CEO, and Director Richard Linden resigns. Also, the company determined an error made with respect to recognition of revenue associated with a second quarter 2005 sales contract.

Boston Scientific (BSX) says EuroIntervention released an integrated analysis that further supports strong performance of Taxus paclitaxel-eluting coronary stent system for treatment of coronary artery disease in diabetic patients.

Abercrombie & Fitch (ANF) posts 62 cents vs. 45 cents first quarter EPS on a 20% sales rise. It raises first half fiscal year 2007 EPS guidance to $1.28 to $1.33.

Principal Financial Group (PFG) says it received a subpoena on May 12 from the Office of the Attorney General of the State of NY seeking information associated with marketing and the sale of retirement products and services. It sets a $500 million stock buyback.

Compuware (CPWR) posts 15 cents vs. 7 cents fourth quarter EPS as lower operating costs and the gain from settlement offset a 2.9% revenue decline.

Talbots (TLB) posts 51 cents vs. 63 cents first quarter EPS despite a 1.5% sales rise. It sees 5 cents to 15 cents second quarter GAAP loss, which includes acquisition-related costs, and adjustments of 20 cents per share.

Lasercard (LCRD) posts 15 cents fourth quarter EPS vs. 26 cents loss on sharply higher revenues. It says full implementation of Italy's ID card is awaiting final ministerial signature and publication, so the exact timing of volume issuance remains uncertain.

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