U.S. stocks were trading higher Tuesday, as the Dow Jones
Industrial Average recently added 108 points to 13988, the Standard
& Poor's rose 14 points to 1510, and the Nasdaq Composite
gained 34 points to 3156. Among companies with shares actively
trading in Tuesday's session are Yum Brands Inc. (YUM), McGraw-Hill
Cos. (MHP) and Virgin Media Inc. (VMED).
Yum Brands' fourth-quarter earnings slipped 5.3% as the
fast-food chain's same-store sales in China were hurt by negative
publicity from a government review of poultry supplies there. The
company also said it no longer expects earnings growth this year.
Shares fell 4% to $61.39.
U.S. Attorney General Eric Holder said the government could seek
more than $5 billion from Standard & Poor's Ratings Services,
owned by McGraw-Hill Cos., as part of the Justice Department's
civil lawsuit against the ratings firm. Shares of McGraw-Hill,
which recently had a market capitalization of about $14 billion,
fell 2.4% to $47.58.
John Malone's international cable business Liberty Global Inc.
(LBTYA) is close to a deal to buy U.K. cable-television and
Internet provider Virgin Media, which could create a stronger
competitor to market leader British Sky Broadcasting Group PLC
(BSYBY, BSY.LN, BSV.LN). Virgin Media shares jumped 17% to
$45.29.
Opexa Therapeutics Inc. (OPXA) stands to be awarded up to $225
million in a commercialization deal struck with Merck KGaA's
(MKGAY, MRK.XE) for Opexa's multiple-sclerosis therapy, Tcelna.
Opexa's shares traded more than two times higher at $3.43.
Estee Lauder Cos.' (EL) fiscal second-quarter earnings rose 13%
as the beauty-products company reported higher revenue, boosted by
accelerated orders from some retailers. The company, home to brands
such as Clinique and Origins as well as its namesake line, also
raised its profit forecast for the year. Shares rose 5% to
$231.94.
Gainers in focus:
Aecom Technology Corp.'s (ACM) fiscal first-quarter earnings
topped analysts' expectations despite sliding 20% as weakness in
Australia and the U.S. hurt the technical and management-support
services provider's sales and margins.
Archer Daniels Midland Co.'s (ADM) fiscal second-quarter
earnings surged as the agricultural giant operated U.S.
soy-crushing plants at a record capacity in the quarter.
Cache Inc. (CACH) said Chairman and Chief Executive Thomas
Reinckens is stepping down and will be succeed by industry veteran
Jay Margolis, as the women's apparel company also said shareholders
MFP Partners and Mill Road plan to appoint two representatives to
the retailer's board. In addition, Cache projected fourth-quarter
net sales that were slightly higher than analysts' views.
Centene Corp. (CNC) felt a worse-than-expected impact from a bad
flu season in the fourth quarter, and Chief Executive Michael
Neidorff said the Medicaid insurer's initial read suggests similar
flu costs in January as was the case in December. But Centene had
anticipated costs for the virus would be higher sequentially this
quarter and Mr. Neidorff noted recent CDC data suggests the flu
season peaked in mid-January. "Recognizing this, we have not
changed our annual guidance," he said. Some analysts are viewing
the maintained guidance as a positive sign against the backdrop of
big fourth-quarter hit.
Computer Sciences Corp. (CSC) swung to a fiscal third-quarter
profit as the technology-products distributor started to see
benefits from its turnaround efforts. Margins more than doubled in
the North American public-sector segment, even as revenue fell
2.8%.
Shares of Eaton Corp. (ETN) rose despite forecasting downbeat
current-quarter income and reporting lower fourth-quarter earnings
as weaker international electrical sales and acquisition costs
masked the power-management-systems maker's improved revenue.
However, the company has said it could benefit from a boost in
demand for transformers, switching gear and other electrical
equipment caused by superstorm Sandy, which devastated New Jersey,
New York and nearby areas in October. Eaton in November closed on
its roughly $11.8 billion acquisition of Cooper Industries and is
poised to vastly expand its power management portfolio and
electrical business.
PDC Energy Inc. (PDCE) agreed to sell some Colorado assets to
Denver-based Caerus Oil & Gas LLC for about $200 million in
cash, as the exploration and production company looks to ramp up
drilling in the Utica Shale.
Circuits supplier Power Integrations Inc. (POWI) turned in
better-than-expected fourth-quarter results, helped by a 50% jump
in LED lighting revenue. "While peers are guiding down due to
cyclical weakness in end-market demand, [Power Integrations] is
outperforming," Sterne Agee said in a note, backing its buy rating
on the stock.
Protalix BioTherapeutics Inc. (PLX) confirmed it is exploring
strategic options, although it didn't specify as to whether these
include the possibility of selling itself.
Regal-Beloit Corp. (RBC) shares continued to rise after its
fourth-quarter results surpassed expectations and its
current-quarter earnings guidance was also above Wall Street's
view.
Decliners in focus:
Arch Coal Inc. (ACI) swung to a fourth-quarter loss as the coal
producer posted large charges stemming from write-downs and Patriot
Coal Corp.'s (PCXCQ) bankruptcy, while revenue sank.
Craig-Hallum downgraded Bottomline Technologies Inc. (EPAY) from
buy to hold despite the company reporting record second-quarter
revenue, saying "our enthusiasm was doused by the realities of
add-backs, tax benefits and modest organic growth."
BRE Properties Inc.'s (BRE) $2.40-a-share midpoint guidance for
2013 funds from operations was below expectations of analysts,
weighing on shares, despite its fourth-quarter earnings more than
doubling on same-store revenue growth and a gain on property
sales.
Diamond Offshore Drilling Inc.'s (DO) fourth-quarter earnings
fell 17% as lower day rates dampened improved utilization of
ultradeep-water and midwater floaters, although results topped
consensus estimates. Dahlman Rose and Co. and GHS Research said in
analyst notes that 2013 downtime estimates by the company were
higher than expected.
While Edwards Lifesciences Corp. (EW) beat analysts'
expectations with its fourth-quarter results, investors are focused
on U.S. sales of its Sapien heart valve. Nearly 20% came from
healthcare-provider "stocking," or buying devices in anticipation
of use. That is higher than expected, Wells Fargo said, and
suggests somewhat lower Sapien utilization than anticipated.
Hemispherx Biopharma Inc. (HEB) said the U.S. Food and Drug
Administration has declined to approve a proposed treatment for
chronic-fatigue syndrome, saying the company didn't provide
sufficient safety or efficacy data. The drug, Ampligen, has been in
development for more than two decades. Shares sank after hours
Monday, and continued to decline in recent trading.
Citigroup downgraded Iconix Brand Group Inc. (ICON) to neutral
from buy based on valuation and lack of near-term catalysts, after
the company said it acquired a 51% stake in the Buffalo David
Bitton brand for $76.5 million. With the stock up historically,
Citigroup believes the Buffalo and Umbro acquisitions are now
priced in.
MagnaChip Semiconductor Corp. (MX) said one of its largest
stockholders plans to sell five million shares. The South
Korea-based chip manufacturer won't receive any proceeds from the
sale. MagnaChip had about 35.6 million shares outstanding at the
end of 2012.
Latin American wireless operator NII Holdings Inc. (NIHD)
projected an unexpected decline in 2013 revenue, sending shares
tumbling. The company also said it is looking to raise money
through the sale and leaseback of up to 4,500 cellphone towers in
Mexico and Brazil, though it stressed there is no certainty that a
deal will happen.
Rudolph Technologies Inc.'s (RTEC) fourth-quarter profit surged
on tax-related adjustments and higher revenue. Shares fell,
however, as the results missed Street expectations.
Write to Debbie Cai at debbie.cai@dowjones.com
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