Monday, January 7, 2013

Stocks to Watch: Stocks to watch Tuesday: Kenexa, Coinstar, ViaSat

WASHINGTON (MarketWatch) � Among the stocks that could see active trade in Tuesday�s session are Kenexa Corp., Coinstar Inc. and ViaSat Inc.

Two more Dow Jones Industrial Average components, Coca-Cola Co. KO and Walt Disney Co. DIS , are scheduled to release financial results Tuesday. Other notables: Lincoln National Group LNC , Western Union Co. WU , Anadarko Petroleum Corp. APC , Martin Marietta Materials Inc. MLM , Emerson Electric EMR , Becton Dickinson & Co. BDX , Perrigo Co. PRGO , Church & Dwight Inc. CHD , Ralcorp Holdings Inc. RAH , Panera Bread Co. PNRA , Harman International Industries Inc. HAR , Cerner Corp. CERN , Glatfelter GLT , Agco Corp. AGCO �and Badger Meter Inc. BMI , among others.

Amid reports of growing doubts over whether its merger with Medco Health Solutions Inc. � will pass regulatory muster, Express scripts Inc. ESRX �said late Monday a subsidiary priced a $3.5 billion debt offering in connection with the proposed deal. The private offering � $1 billion of 2.1% senior notes due 2015, $1.5 billion of 2.65% senior notes due 2017 and $1 billion of 3.9% senior notes due 2022 � is expected to close Feb. 9, St. Louis-based Express scripts said. Net proceeds will be applied toward paying a portion of the cash consideration in the Medco deal as well as repaying a merger-related bridge loan, Express scripts said. The subsidiary will be required to redeem the notes in the event that the Medco merger doesn�t occur, according to Express scripts.

Along with reporting fourth-quarter financial results, Kenexa KNXA issued its financial forecast for the first quarter of 2012 and for the full year. �Uncertainty regarding the global economy remains at a very high level ... As we look ahead, we are cautiously optimistic regarding Kenexa�s outlook for 2012,� said CEO Rudy Karsan in the earnings release. The Wayne, Pa.-based company also announced the acquisition of OutStart, a privately held provider of e-learning solutions and services. A purchase price wasn�t disclosed, but Kenexa said the deal would be funded from its existing cash balance. Based in Boston, OutStart serves more than 300 customers. Management anticipates the buyout will �be at least neutral to non-GAAP net income� per share for 2012. Kenexa pegged its non-GAAP profit at 15 cents to 17 cents a share for the first quarter and in a range of 95 cents to $1.07 a share for all of 2012. The company also projected net revenue of $75.8 million to $76.8 million for the quarter and $344 million to $354 million for the year.

Along with reporting fourth-quarter results, Genomic Health Inc. GHDX �said it anticipates generating net income of $5 million to $8 million for 2012. However, this would be before an incremental loss of up to $8 million incurred as a result of setting up a new subsidiary, the Redwood City, Calif.-based company said. The subsidiary will be established to make �clinically relevant genetic information available to physicians and patients� starting in 2013, Genomic Health said. It plans to invest up to $20 million in the unit over the next two years. The company also pegged full-year revenue in a range of $230 million to $240 million, compared to $206.1 million for 2011, and projected it would deliver 75,000 to 77,000 Oncotype DX test results during 2012, up from more than 66,600 last year.

Boardwalk Pipeline Partners LP BWP �said underwriters have exercised their option to purchase additional common units, bringing the total size of the secondary public offering to 9.2 million units. Net proceeds will be about $250 million, the Houston-based partnership said. The proceeds will be used, among other things, to repay outstanding borrowings under its revolving credit facility, Boardwalk Pipeline Partners said.

Along with reporting fourth-quarter results, Owens & Minor Inc. OMI �said its board approved a 10% increase in the company�s quarterly dividend, to 22 cents a share. The new cash dividend is payable March 30 to stockholders of record as of March 15, the Richmond, Va.-based distributor of name-brand medical and surgical supplies said.

Monday earnings recap

Coinstar CSTR �said its Redbox unit will pay up to $100 million in purchasing NCR Corp.�s entertainment assets, including DVD kiosks. The move comes as Bellevue, Wash.-based Coinstar reported fourth-quarter earnings of $31.5 million, or $1 a share, up from $11.7 million, or 35 cents, earned in the final three months of 2010. Quarterly revenue jumped 33% to $520.5 million, as revenue from Redbox rose 40% to $445.6 million. Analysts polled by FactSet Research had, on average, been looking for a profit of 65 cents a share on sales of $498.3 million. As for 2012, management forecast that Coinstar would earn 76 cents to 91 cents a share on revenue of $530 million to $555 million for the first quarter, on the way to full-year earnings of $3.80 to $4.30 a share on revenue pegged between $2.08 billion and $2.25 billion.

Separately, NCR NCR �posted fourth-quarter earnings on an adjusted basis of 65 cents a share, on revenue of $1.64 billion. The FactSet-derived consensus had been for earnings of 57 cents a share on revenue of $1.59 billion.

Costs associated with a launch delay weighed on earnings for the third quarter ended Dec. 30, ViaSat said. The Carlsbad, Calif.-based company VSAT �reported net earnings of $5.1 million, or 12 cents a share, down from $12.9 million, or 30 cents, earned in the third quarter of fiscal 2011. On an adjusted basis, ViaSat�s quarterly profit would have fallen to $11.6 million, or 26 cents a share, from the prior year�s $18.6 million, or 43 cents. Third-quarter revenue rose to $205 million from $195.9 million a year earlier. Following the delay, the launch of the ViaSat-1 satellite into geosynchronous orbit took place in October, paving the way for the introduction of Exede, the company�s high-capacity broadband service.

No comments:

Post a Comment