Among the companies whose shares are expected to actively trade
in Tuesday's session are Johnson & Johnson (JNJ), Verizon
Communications Inc. (VZ) and McDonald's Corp. (MCD).
Johnson & Johnson's fourth-quarter results show continued
weakness in the orthopedics market. The company said Tuesday that
U.S. sales at its DePuy unit fell 4%. The market for hip and knee
implants has been hurt by factors such as consumers putting off
surgeries in a weak economy and concerns over the safety of
metal-on-metal hips. Shares slid 0.7% premarket at $65.25.
Verizon swung to a fourth-quarter loss on a large
pension-related charge, though more contract wireless subscribers
helped the telecommunications giant post better-than-expected
revenue. Shares were down 2.1% to $37.65 in recent premarket
trading.
As McDonald's fourth-quarter earnings per share grew more than
analysts expected amid a 7.5% surge in global same-store sales,
despite tough comparisons to strong prior-year results, the
restaurant chain yet again shows its apparent immunity to
macro-economic pressures. The performance also came amid few
new-product launches in the U.S. Meanwhile, analysts say McDonald's
will need to raise prices, if they haven't already, to continue to
offset high inflation, and are waiting to hear the company's plan
for additional price increases. Shares were up 0.5% to $101.40 in
recent premarket trading.
EMC Corp. (EMC) on Tuesday eased fears of slowing business
spending on technology by reporting its best-ever fourth quarter
and issuing an optimistic view for 2012, saying demand for its
storage products remain high. Shares climbed 3.7% to $24.30 in
recent premarket trading.
Kimberly-Clark Corp.'s (KMB) fourth-quarter earnings fell 19% as
higher costs again put a damper on the company's improved sales,
particularly in its crucial personal care business. The company,
whose products include Huggies diapers, Scott paper towels and
Kleenex tissues, also offered a conservative outlook for its new
fiscal year. Shares declined 2.6% to $71.60 in recent premarket
trading.
CSX Corp.'s (CSX) fourth-quarter earnings rose 6.3% as the
railroad company posted higher revenue, though volume slid. The
U.S. transportation sector is broadly expected to post improved
results for the fourth quarter, coming off a better-than-expected,
though subdued, peak shipping season. Shares fell 3.7% to $21.85 in
premarket trading.
Nokia Corp. (NOK) shares fell sharply 8.2% to $5.26 premarket
after comments by Texas Instruments Inc. (TXN) and
STMicroelectronics N.V. (STM, STM.MI), says FIM analyst Michael
Schroder. The chipmakers have said their weakened business with
Nokia indicates that Symbian-based feature phones are "probably
losing a lot of momentum right now," says Schroder. "With Nokia's
Windows Phones only coming up gradually, not compensating all the
losses in Symbian handsets, it looks quite bad."
Baker Hughes Inc.'s (BHI) fourth-quarter earnings fell 6.3% as
higher costs and weakness in pressure pumping masked the
oilfield-services company's revenue growth. Shares declined 3.8% to
$45.93 premarket as the results missed expectations.
Quest Diagnostics Inc.'s (DGX) fourth-quarter earnings rose 14%
as the company saw higher testing revenue and improved margins,
while unveiling a $1 billion increase to its stock buyback program.
Results easily beat expectations, but the company predicted
downbeat adjusted per-share earnings on revenue growth for the new
year. Shares were up 4.3% to $58.92 in recent premarket
trading.
Higher average selling prices helped boost Western Digital
Corp.'s (WDC) second-quarter results, Morgan Stanley says. The firm
notes pricing for hard-disk drives was up about 72% since the
Thailand flooding, which lifted the company's gross margin despite
higher manufacturing and component costs, and it also offset weaker
units. But Morgan Stanley adds average selling prices will
normalize earlier than expected. Shares gained 4.5% to $36.28 in
recent premarket trading.
International Game Technology's (IGT) fiscal first-quarter
earnings fell 33% as a lack of new casinos in North America hurt
the slot-machine maker's revenue and margins, leading to a surprise
drop in both top- and bottom-line results. Shares slumped 8% to
$14.75 in recent premarket trading.
Polycom Inc.'s (PLCM) fourth-quarter earnings rose a
greater-than-expected 50% as the videoconferencing company's
emerging-market sales continued to outperform its American
business. Shares jumped 16% to $21.28 in recent premarket trading
as revenue also topped expectations.
Brinker International Inc.'s (EAT) fiscal second-quarter
earnings fell 4.8% as charges masked the casual-dining company's
improved revenue and margins. While the parent company of Chili's
Grill & Bar and Maggiano's Little Italy reported a rise in
fiscal first-quarter revenue--its strongest rate in years--some
questioned whether the momentum would continue through the
remainder of the fiscal year, as it comes up against stronger
prior-year performance and increased competitive pressure. Shares
dropped 8.2% to $25.36 in recent premarket trading.
MGIC Investment Corp.'s (MTG) fourth-quarter loss narrowed as
the private-mortgage insurer posted bigger gains and increased
revenue. The period marked the sixth straight quarterly loss for
MGIC, the largest mortgage insurer for both Fannie Mae (FNMA) and
Freddie Mac (FMCC). Shares were down 3% to $3.94 in recent
premarket trading.
Watch List:
Acura Pharmaceuticals Inc. (ACUR) said the new formulation of
Pfizer Inc.'s (PFE) pain drug Oxecta that uses its tamper-resistant
technology is now available for sale.
Air Products & Chemicals Inc.'s (APD) fiscal first-quarter
earnings fell 7.6% as the industrial-gas company saw continued
weakness in its equipment and energy segment and slower growth in
its three other major segments. The company forecast second-quarter
earnings below analysts' estimates, and said it expects slow
economic activity in the period but predicted Asia and North
America growth would accelerate in the second half of the year.
Ashland Inc.'s (ASH) fiscal first-quarter profit slumped 38% due
to a pair of heavy charges, although the chemical company's core
earnings gained with help from a key acquisition.
Coach Inc.'s (COH) fiscal second-quarter earnings rose 15% as
strong North America sales helped offset flat indirect sales. The
luxury handbag, accessories and leather-goods maker has seen its
profit grow for over two years on the strength of its North
American direct-to-consumer businesses and global expansion.
Crane Co. (CR) swung to a loss in the fourth quarter as the
diversified manufacturer extended its provision for asbestos and
environment liabilities, but its adjusted profit rose.
Depomed Inc. (DEPO) said it received notice from the U.S. unit
of Actavis Group that the generic drug maker has filed for Food and
Drug Administration approval to market its version of Gralise.
DuPont Co.'s (DD) fourth-quarter profit fell 0.8% as the
chemicals giant posted weaker volume but was aided by higher
pricing, which it used to offset higher raw material costs. DuPont,
a diversified U.S. manufacturer, repeatedly warned of a weaker
fourth quarter and recently lowered its profit guidance for
2011.
Harley-Davidson Inc. (HOG) swung to fourth-quarter profit from a
year-earlier period that included a hefty debt-retirement charge as
the motorcycle maker also posted stronger sales.
InterDigital Inc. (IDCC) said it will abandon a strategic review
it began in July and instead continue as a standalone company.
InterDigital issued slightly better-than-expected preliminary
fourth-quarter results.
Kansas City Southern's (KSU) fourth-quarter earnings rose 75% as
the regional railroad operator reported double-digit revenue growth
in its automotive, intermodal and coal businesses. However, revenue
missed analysts' expectations. For the broader U.S. transportation
industry, many companies were expected to post higher earnings for
the fourth quarter.
Monro Muffler Brake Inc.'s (MNRO) fiscal third-quarter earnings
jumped 23% as the automotive services company said recent
acquisitions and labor productivity helped outweigh increases in
oil and tire costs.
Murphy Oil Corp. (MUR) said it would book a $370 million
write-down in the fourth quarter of last year because output rates
and ultimate oil recovery at a field off the shore of the Republic
of the Congo were lower than expected.
Packaging Corp. of America's (PKG) fourth-quarter earnings fell
28% as higher costs offset improved revenue.
Regions Financial Corp. (RF) swung to a fourth-quarter loss,
with the regional lender booking a hefty write-down following a
long-planned deal to sell its brokerage unit. The operator of banks
in 16 states across the southern and midwestern U.S., this month
agreed to sell its regional brokerage Morgan Keegan & Co. to
wealth manager Raymond James Financial Inc. (RJF) for $930 million,
putting to rest a six-month auction process. The lender, which has
faced a long road to recovery after taking heavy losses from soured
real-estate loans during the financial crisis, still must repay
$3.5 billion in government aid, and has cautioned it will have to
raise more capital to make the repayment despite the Morgan Keegan
sale.
Semtech Corp. (SMTC) agreed to acquire Canada's Gennum Corp.
(GND.T) for about C$500 million ($494 million) in cash, the latest
bid by a chip maker to expand its portfolio of network-focused
products.
SPX Corp. (SPW) struck a deal to sell its service solutions
business to German auto parts maker and engineering firm Robert
Bosch GmbH for $1.15 billion in cash, part of continued reshaping
of the diversified-industrial company. SPX's service solutions
business manufactures and sells diagnostic and service tools,
workshop equipment and software for the global automotive
aftermarket.
Georgia lender Synovus Financial Corp. (SNV) swung to a profit
in the fourth quarter after sharply reduced funds held for risky
loans helped the regional lender report its second straight quarter
in the black.
VMware Inc.'s (VMW) fourth-quarter earnings rose 67% as the
software maker posted double-digit-percentage increases in services
and license revenues as well as stronger margins. Adjusted earnings
topped analysts' expectations.
Waters Corp.'s (WAT) fourth-quarter earnings rose 8.3% as the
laboratory-equipment maker continued its sales growth streak, but
margins edged lower.
Zions Bancorp (ZION) swung to a fourth-quarter profit as the
Utah regional bank's continually improving credit quality erased
any negative effects from loan-loss provision. The latest period
marks a full year of profitability for the company after two and a
half years of losses, but shares were down 6% at $17.43 premarket
as the bottom line fell short of expectations.
-Edited by Maya Pope-Chappell and Ian Thomson; write to
maya.pope-chappell@dowjones.com and ian.thomson@dowjones.com