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Tuesday's stocks in the news
From Standard & Poor's Equity ResearchAfter the market close, Home Depot (HD) agreed to sell its HD Supply division for $10.3 billion to Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice, Inc. Home Depot also boosted its share buyback plan by $22.5 billion, funded by proceeds from the sale of HD Supply.
Expedia (EXPE) jumps after setting a $3.5 billion stock buyback. S&P raises target price, reiterates hold.
Best Buy (BBY) falls after the electronics retailer posts $0.39, vs. $0.47 a year ago, first-quarter EPS despite 3.0% same-store sales rise and 14% revenue rise. It notes strong revenue results from lower-margin products significantly cut into gross profit rate. It now sees $2.95-$3.15 fiscal year 2008 EPS.
Yahoo (YHOO) names company co-founder Jerry Yang as CEO, replacing Terry Semel, who will assume position of non-executive Chairman. It names Susan Decker President. S&P reiterates hold. Goldman cuts estimates.
Bristol-Myers Squibb (BMY) rises on news that the company and Sanofi-Aventis (SNY) announce that a U.S. District Court upheld the validity and enforceability of a patent covering the active ingredient in Plavix. Also, the FDA accepts for filing and review the Bristol-Myers' New Drug Application for investigational compound ixabepilone, a breast cancer treatment.
UAL Corp (UAUA) says in an 8-K filing that it estimates that second-quarter mainline passenger unit revenue (PRASM) is expected to increase between 2.75%-3.25% year-over-year, while consolidated PRASM is expected to increase 2.0%-3.0%.
US Airways Group (LCC) rises after UBS Financial upgrades to neutral from reduce.
S&P says Finish Line (FINL) shares are lower on what it believes is investor concern over the company's proposed $1.5 billion merger with Genesco (GCO) announced yesterday. S&P upgrades to hold from sell, based on valuation.
Regency Energy Partners (RGNC) rises after the company announces that GE Energy Financial Services, a unit of GE, has acquired interests in the company from HM Capital Partners LLC for $603 million.
Microchip Technology (MCHP) sees $0.36 first-quarter GAAP EPS on lower-than-expected 2% quarter-to-quarter sales rise. S&P reiterates buy. Stifel Nicolaus cuts estimates.
Color Kinetics (CLRK) agrees to be acquired by Royal Philips Electronics in a $791 million deal. Terms: $34 cash per CLRK share.
Cemex.A.B ADS (CX) falls on news it sees first-quarter EBITDA of about $1.12 billion, a year-over-year decline of about 2%, while operating income is seen close to $810 million, 6% lower than year ago. It notes the ongoing correction in U.S. residential sector.
Leggett & Platt (LEG) sees $0.31-$0.36 second-quarter EPS on 4% sales decline, and $1.35-$1.55 2007 EPS on a 2% sales decline. It says several markets have weakened considerably in the past eight weeks. It doesn't see a major catalyst that will appreciably increase demand.