Today’s Hot Stocks

U.S. stocks traded lower Friday as the Dow Jones Industrial Average recently shed 103 points to 11941, the Standard & Poor’s 500 fell 11 points to 1250, and the Nasdaq Composite declined 15 points to 2683. Among the companies whose shares are actively trading in the session are PerkinElmer Inc. (PKI), Chesapeake Energy Corp. (CHK) and Genworth Financial Inc. (GNW).

PerkinElmer’s ($19.31, -$1.32, -6.40%) third-quarter earnings more than doubled on revenue growth in both the human and environmental health divisions, though margins slipped as revenue growth was slower-than-expected.

Chesapeake’s ($27.06, -$1.97, -6.79%) proposed Utica shale deals will help its funding needs, says UBS, but it notes the oil-and-gas company still needs to do more in order to achieve its goal of reducing its current debt-to-capital ratio of 49%. The investment bank speculates that Chesapeake’s next steps may include selling some of its oilfield-services business, another joint venture or trust and other divestitures.

Genworth ($7.11, +$0.95, +15.42%) reported Thursday its third-quarter earnings slid 65% as the insurer posted a net investment loss and took a hit from tax items, but shares jumped as operating results easily topped expectations driven by better-than-expected results in Genworth’s U.S. mortgage-insurance and corporate business. The company also announced plans to pursue a minority initial public offering of its Australian mortgage-interest business with an anticipated sale of up to 40% of its interest. That could fetch Genworth $560 million to $720 million of immediate additional liquidity while also enhancing its financial flexibility, Credit Suisse said.

Starbucks Corp.’s (SBUX, $44.26, +$2.86, +6.91%) fiscal fourth-quarter profit jumped 29% as the coffee merchant reported continued same-store sales growth, particularly in the U.S., as traffic and the amount consumers spent per purchase also kept rising. The company raised its quarterly dividend by 31% to 17 cents a share, pointing to the strength of its business and outlook, and authorized the repurchase of an additional 20 million shares. The results topped expectations.

Fluor Corp. (FLR, $55.10, -$3.50, -5.97%) reported Thursday it swung to a third-quarter profit on higher sales and an improved margin after charges had pushed its industrial-and-infrastructure segment to a loss in the prior year. But shares in the engineering and construction company slipped as the results were short of expectations and the company’s outlook underwhelmed investors.

 
   Other Stocks in Focus:

A123 Systems Inc. (AONE, $3.20, -$0.33, -9.35%) lowered its revenue guidance for the year, citing an unanticipated reduction in orders for battery packs from Fisker Automotive hurting its fourth-quarter revenue.

Alcatel Lucent SA’s (ALU, $2.27, -$0.49, -17.79%) (ALU.FR) American depositary shares slumped after the telecommunications equipment maker lowered its 2011 full-year guidance and said economic uncertainty in Europe and slowing demand for its older products would dent fourth-quarter revenue.

Allscripts Healthcare Solutions Inc.’s (MDRX, $20.48, +$0.91, +4.65%) third-quarter earnings soared as the health-records company recorded higher revenue and a lower tax rate, while acquisition-related expenses weighed on the company’s year-ago results. The company raised its full-year guidance and its results also beat expectations.

Losses at American International Group Inc. (AIG, $23.48, -$1.15, -4.67%) widened by 71% to $4.1 billion in the third quarter, driven by volatile markets, a write-off at its plane-leasing unit and profit declines in its main insurance businesses. Separately, the company said its board had approved a repurchase of up to $1 billion common shares.

AMR Corp.’s (AMR, $2.47, -$0.13, -4.97%) American Airlines reported moderately lower traffic in October as it flew fewer planes with fewer passengers.

Apollo Investment Corp.’s (AINV, $8.00, -$0.41, -4.88%) fiscal second-quarter results missed analysts’ estimates and its net asset value declined 17% as market declines pressured asset pricing.

Bank of America Corp. (BAC, $6.57, -$0.35, -4.99%) Chief Executive Brian Moynihan often pledged not to raise capital through selling common stock, a promise the market had trouble believing and has been fixated on for months. Thursday night, Bank of America said it may issue up to 400 million shares to preferred-stock holders, calling it “economically advantageous.” That begged the question of whether Bank of America is breaking its promise. It says no and, so far, analysts have its back. Wells Fargo calls the move an “opportunistic response to current dislocated market” and isn’t driven by need or regulators. And Morgan Stanley deems it a positive and thinks the issuance could boost capital ratios above current expectations. Still, shares traded down.

CBOE Holdings Inc.’s (CBOE, $26.77, +$0.88, +3.40%) third-quarter earnings more than doubled as massive market turbulence helped the exchange operator book a double-digit jump in revenue.

China Sunergy Co. (CSUN, $1.03, -$0.04, -3.74%) lowered its forecast for third-quarter solar module shipments and predicted negative margins for the period, citing weaker-than-expected market demand for the majority of the quarter.

Con-Way Inc. (CNW, $27.77, -$1.46, -4.99%) swung to a third-quarter profit as the less-than-truckload shipper reported broad revenue growth, including double-digit sales gains for its freight and truckload businesses, while special items weighed on year-ago results. Con-way also said it is seeing higher-than-expected maintenance costs for trucks purchased in the 2004-2005 time frame, when engine technology underwent somewhat of a “generational change.” Trucks bought around then “are not having the same kind of longevity” as earlier models, it said. Problems are showing up now, when the trucks are seven to eight years old, although CNW’s freight division generally keeps trucks for about 10 years.

Digi International Inc.’s (DGII, $10.87, -$2.05, -15.84%) fiscal fourth-quarter results fell short of analysts’ estimates as total operating expenses increased. The company, which makes connectivity hardware and software, also forecast first-quarter results below what analysts were expecting.

Entropic Communications Inc.’s (ENTR, $5.62, -$0.32, -5.31%) shares are taking a hit on worries about the home networking chip maker’s guidance for the current period. During a call with analysts, Entropic forecast fourth-quarter revenue of $54 million to $55 million, above analysts’ estimates for $53 million. But it projects earnings-per-share of 10 cents, slightly below the Wall Street view for 11 cents per share. D.A. Davidson says investors expecting a bit more out of the guidance and that spending is a little higher as Entropic builds new products. Stifel Nicolaus notes management’s guidance and commentary continue to suggest Entropic will struggle to resume meaningful growth and may take several quarters to get back to positive year-over-year growth and prior quarterly rev run-rates.

First Solar Inc.’s (FSLR, $51.55, +$3.37, +6.99%) chairman outlined a raft of changes Thursday, including scaling back manufacturing plans, cutting costs and changing the company’s approach to finding new customers, as part of an effort to boost the company’s global competitiveness. The move impressed Lazard Capital, which raised its stock-investment rating on the company to buy from neutral.

Flagstone Reinsurance Holdings Ltd. (FSR, $8.08, -$0.85, -9.52%) swung to a third-quarter loss as the reinsurer’s payouts surged on catastrophe costs and its revenue plunged on investment losses.

Standard & Poor’s Ratings Services cut Gentiva Health Services Inc.’s (GTIV, $3.61, -$0.31, -7.91%) a notch further into junk territory Thursday after the company’s planned restructuring changes raised the specter of a possible technical default.

Daily deals website Groupon Inc. (GRPN, $28.35, +$8.35, +41.75%) enjoyed an early trading pop on its IPO Friday, paving the way for more new stocks to launch in the weeks ahead. The Chicago-based company’s initial-public-offering price was $20.

Hansen Natural Corp.’s (HANS, $94.16, +$4.03, +4.47%) third-quarter profit rose 24% on strong volume growth and higher prices.

Health Care REIT Inc. (HCN, $50.27, -$2.01, -3.84%) said its enlarged offering of 11 million shares priced at a 4.4% discount to Thursday’s close.

Inhibitex Inc. (INHX, $9.05, +$5.09, +128.41%) reported its third-quarter loss was unchanged from a year earlier as revenue surged, while also saying it saw favorable results in ongoing clinical trials of a drug aimed at treating infections caused by the hepatitis C virus.

Intermec Inc.’s (IN, $7.62, -$0.99, -11.50%) third-quarter revenues rose 26% year-over-year, but shares fell as the results missed expectations and the company, which develops and sells wired and wireless automated identification and data collection products, guided to fourth-quarter earnings-per-share below analysts’ estimates.

International Rectifier Corp.’s (IRF, $22.93, -$1.08, -4.50%) fiscal first-quarter earnings fell short of analysts’ expectations, and the chipmaker projected second-quarter revenue below the Street’s consensus estimate.

LinkedIn Corp. (LNKD, $80.51, -$7.00, -7.99%) swung to a third-quarter loss as the professional-networking site’s revenue more than doubled. Shares fell even as the company raised its full-year revenue estimate.

Live Nation Entertainment Inc. (LYV, $8.66, -$0.91, -9.51%) posted a surprise 7.3% decline in attendance during the summer concert season, but President and Chief Executive Michael Rapino told CNBC that the business is still strong. Festivals, the European segment and North American arena revenue climbed 5%-6%, but amphitheaters “purposefully” weighed on the quarter as the world’s largest live-event promoter tried to drive profit margin, Rapino said. He also doesn’t see “deterioration” heading into the fourth quarter, but investors aren’t listening.

Madison Square Garden Co.’s (MSG, $27.76, +$1.01, +3.78%) fiscal first-quarter profit rose 11% as growth in its cable networks helped make up for the closure of its namesake arena for renovations.

Microchip Technology Inc.’s (MCHP, $36.99, +$1.22, +3.41%) fiscal second-quarter results met analysts’ estimates, and the company issued in-line guidance for the current quarter despite poor economic conditions currently impacting the semiconductor industry. The chip maker said this quarter will mark the low point for revenue, gross margin and earnings per share during the current cycle, with next quarter showing sequential growth. Morgan Keegan notes Microchip historically has been a “good harbinger” for the semiconductor industry due to how it recognizes revenue, its short lead times and its small- to medium-sized customers that can adjust inventories easier to reflect current end-market demand.

Moog Inc.’s (MOGA, $38.28, +$1.02, +2.74%) fiscal fourth-quarter results topped Wall Street’s estimates as aircraft and military aircraft sales climbed 13%, while commercial airline revenue gained 10% and sales to Airbus jumped 36% as production on existing Airbus programs increased. The company, which develops precision control components and systems for aircraft, satellites and space vehicles, also raised its fiscal 2012 guidance.

Murphy Oil Corp. (MUR, $54.90, -$2.53, -4.41%) Chief Executive David Wood’s willingness to provide “self-imposed targets is risky” as “any slippage in growth becomes more and more” dilutive on returns, says Deutsche Bank. The company on Wednesday lowered its 2012 production target by 10% but maintained an ambitious production target for 2015. Murphy also plans to boost capital spending 30% next year. “When the track record of the past couple of years of missing targets is considered, outlining a new plethora of targets becomes unnecessarily, even excessively, risky,” says Deutsche Bank.

NextEra Energy Inc.’s (NEE, $55.98, -$1.63, -2.83%) third-quarter profit sank 43%, missing Wall Street’s estimates, as its unregulated generating business posted lower earnings.

Oil States International Inc.’s (OIS, $74.36, +$3.18, +4.47%) third-quarter results beat analysts’ estimates as its well site services segment benefited from higher revenue and margins in rental tools and stronger land drilling utilization and margins.

Global Hunter Securities raised its stock-investment rating on PDC Energy (PETD, $29.17, +$1.46, +5.27%) to buy from accumulate, noting that uncertainty surrounding its unexpected management change during the second quarter seemed to have been remedied. The company is poised to streamline its focus on two core areas with planned asset sales of approximately $300 million, and its aggressive entry into the Utica region “looks like a shrewd move,” Global Hunter said.

Pepco Holdings Inc.’s (POM, $19.45, -$0.41, -2.06%) third-quarter earnings surged as the prior year was weighed down by debt retirement-related costs, though revenue in the energy services segment dropped significantly in the latest quarter.

Plains Exploration & Production Co. (PXP, $35.46, +$2.12, +6.36%) swung to third-quarter loss amid derivatives impacts and other items as the oil-and-gas exploration company also unveiled plans to sell more assets, part of its broader strategy to increase revenue. But results still topped analysts’ estimates and the company agreed to sell its working interests in its Texas Panhandle region properties to Linn Energy LLC (LINE, $37.20, +$0.07, +0.19%) for $600 million. Plains also reached a deal to sell its working interest in its south Texas conventional natural-gas properties to an unidentified third party for $185 million.

Public Storage’s (PSA, $124.42, -$2.84, -2.23%) third-quarter earnings fell 35%, missing analysts’ estimates, as the storage-facility owner’s revenue growth showed signs of slowing.

Quest Software Inc.’s (QSFT, $19.14, +$1.13, +6.27%) third-quarter results came in ahead of the Street’s estimates as the company’s revenue climbed 14% year-on-year.

Red Robin Gourmet Burgers Inc. (RRGB, $27.18, +$2.20, +8.81%) swung to a third-quarter profit as revenue rose and margin improved, in results that replicated the previous quarter’s pattern of increasing sales with a higher average check rather than luring in more customers.

Rofin-Sinar Technologies Inc.’s (RSTI, $23.55, -$2.78, -10.56%) fiscal fourth-quarter results were slightly above the Street consensus, but the company took a cautious view for the first quarter, projecting first-quarter results sharply lower than what analysts were expecting. Rofin-Sinar cited slowed order intake in the Asian markets, led by China controlling its inflation and the general tightening in credit allocated to the private economy, as a reason for the weak outlook.

Seattle Genetics Inc.’s (SGEN, $18.17, -$3.79, -17.26%) third-quarter results beat analysts’ estimates, but Piper Jaffray lowered its stock-investment rating on the company to neutral from buy. Piper says the company’s shares are fully reflective of its strong launch of blood cancer drug Adcetris, and that it will be a “long time” until clinical data enables broader approval of the product.

Skyworks Solutions Inc.’s (SWKS, $21.49, +$0.99, +4.83%) fiscal fourth-quarter results came in slightly above what analysts were expecting, but the analog and mixed signal chip designer gave first-quarter guidance below analyst estimates, citing near-term market weakness.

Solera Holdings Inc.’s (SLH, $53.03, -$1.24, -2.28%) fiscal first-quarter earnings rose 7.3% as the software company posted broad sales growth, though it cut its full-year forecast.

Sprint Nextel Corp. (S, $2.88, +$0.07, +2.49%) moved Friday to issue new debt, as the third-largest U.S. wireless carrier looks to finance expensive network upgrades and to close a looming cash deficit. Sprint is aiming to raise at least $2 billion from the debt sale, and perhaps as much as $5 billion if there’s enough demand, The Wall Street Journal reported, citing a person familiar with the transaction. Clearwire Corp. (CLWR, $1.93, +$0.18, +10.29%) was included as a possible use of the funds Sprint hopes to raise, a positive for that company.

St. Joe Co.’s (JOE, $13.50, -$0.32, -2.32%) third-quarter loss narrowed as the Florida developer booked lower expenses, though revenue declined slightly.

Sunoco Inc. (SUN, $37.20, -$0.89, -2.34%) swung to a third-quarter loss on a big write-down tied to its decision to exit the refining business, masking a surprise surge in revenue. Adjusted earnings just missed estimates.

Universal Electronics Inc.’s (UEIC, $17.35, -$1.43, -7.61%) third-quarter results beat analysts’ estimates, but the technology firm’s fourth-quarter guidance fell short of what the Street was looking for.

Vornado Realty Trust (VNO, $80.18, -$2.30, -2.79%) third-quarter earnings fell 48% as the commercial-property owner booked a loss on its J.C. Penney Co. (JCP, $33.47, -$0.05, -0.15%) investment, though revenue rose more than expected.

Washington Post Co. (WPO, $328.00, -$7.70, -2.29%) swung to a third-quarter loss on heavy charges and as revenue in its education unit continued to show weakness and its publishing arm saw a revenue drop as well.

Windstream Corp.’s (WIN, $11.81, -$0.72, -5.75%) third-quarter earnings fell 16% as the rural-telecom company reported weaker-than-expected revenue and a jump in costs.

-Edited by Ian Thomson and Corrie Driebusch; write to [email protected] and [email protected]

(END) Dow Jones Newswires