Investor Alert

Stocks to Watch

June 16, 2004, 10:38 p.m. EDT

Adobe, Ford, Jabil, Red Hat, CarMax

By Carla Mozee, CBS MarketWatch

SAN FRANCISCO (CBS.MW) - Among the companies whose shares are expected to see active trading on Thursday is Adobe Systems (NAS:ADBE) . The software maker is expected to report a second-quarter per-share profit of 42 cents, according to analysts surveyed by Thomson First Call.

Healthcare manager American Healthways is seen posting a per-share profit of 19 cents for its third quarter.

Analysts expect used car and truck sales firm CarMax (NYS:KMX) to report earnings of 30 cents a share for its first quarter.

Fourth-quarter earnings for Biloxi, Miss.-based Isle of Capri Casinos (NAS:ISLE) are expected to come in at 37 cents a share.

Wall Street expects J.M. Smucker's (NYS:SJM) fourth-quarter earnings to come in at 52 cents a share.

Progress Software (NAS:PRGS) , based in Bedford, Mass., is seen posting a second-quarter per-share 22 cent profit.

Red Hat's analysts expect the open-source technology firm to report earnings of 4 cents a share for its first quarter.

Saba Software is expected to say it lost 13 cents a share during the fourth quarter.

Electronics manufacturer Solectron is expected to report third-quarter breakeven results.

Recreational vehicle maker Winnebago's (NYS:WGO) third quarter results are due. Analysts expect the company's earnings to come in at 46 cents a share.

Ford Motor (NYS:F) sharply raised its earnings outlook late Wednesday for the second quarter and 2004, citing a healthy performance by its financial services sector amid low interest rates. See full story. The company said it was raising its earnings estimate for the second quarter by 15 cents to a range of 45 cents to 50 cents a share, up from its previously announced range of 30 cents to 35 cents. At the same time, Ford boosted its full-year earnings outlook to a range of $1.65 to $1.75 a share, compared with a previous range of $1.50 to $1.60 a share. The numbers are based on continuing operations, excluding special items. Ford shares closed up 22 cents at $15.63 on the New York Stock Exchange, a 1.4 percent gain on the day.

Jabil Circuit (NYS:JBL) announced a management shuffle and posted fiscal third-quarter financial results that matched what most Wall Street analysts expected. For the third quarter, which ended May 31, Jabil Circuit reported net income of $40.1 million, or 19 cents a share, on sales of $1.6 billion. During the same quarter last year, Jabil earned $4.5 million, or 2 cents a share, on sales of $1.2 billion. See full story.

Memory chipmaker SimpleTech said it would take a $3.5 million charge and cut its second-quarter revenue outlook due to the closing of a product division and negative market conditions. See full story. SimpleTech said it expects to post second-quarter revenue between $53 million and $56 million, down from a previous forecast of $66 million. The Santa Ana, Calif.-based company said it lowered its forecast because of a reduction in flash memory sales and a decrease in prices of its core DRAM chip products.

Overnite raised its second-quarter forecast, citing a recovering U.S. economy and the success of its growth plans. The trucking company upped its forecast for the period to a range of 53 cents to 58 cents a share vs. its previous outlook of 43 cents to 48 cents a share. Analysts polled by Thomson First Call are currently looking for a per-share profit of 48 cents for the quarter. The company is scheduled to report its second-quarter results on July 28, at which time it will also update its 2004 forecast. Overnite shares ended Wednesday's regular trading session up 3.2 percent at $27.53 ahead of the announcement.

Safeway was sued by the California attorney general, who alleged the food retailer sells tobacco products to minors and its efforts to prevent such sales in its Safeway, Vons, Pavillions and Pak N' Save stores aren't strong enough. The company said it complies with laws that ban tobacco sales to underage customers and will work with the attorney general to address "any legitimate concerns his office may have." Shares of Safeway rose 50 cents to close at $24.50.

KB Home (NYS:KBH) beat Wall Street's second-quarter expectations on strong reported a profit of $102.1 million, or $2.40 a share, compared to $81.4 million, or $1.94 a share, a year ago. The Los Angeles-based firm posted revenue of $1.57 billion, up from $1.44 billion last year. Analysts surveyed by Thomson First Call expected the company to report earnings of $2.10 a share on sales of $1.52 billion. KB Home also said the overall average selling price of homes rose to $216,800 from $212, 200 last year.

Leggett & Platt (NYS:LEG) raised its forecast for the second quarter and full year of 2004, citing higher-than-expected sales. The diversified manufacturer said it now expects to post a second-quarter profit of 35 cents to 40 cents per share versus its previous outlook of 31 cents to 36 cents a share. See full story. Analysts, on average, are forecasting a per-share profit of $1.32 on sales of $4.83 billion. Shares of Leggett & Platt slipped 13 cents to end Wednesday's session at $23.71.

Kreisler Manufacturing said Edward Stern, its chairman, president and CEO has died. The St. Petersburg, Fla.-based firm said Stern served as its president and CEO for 32 years. The precious metal components maker did not identify Stern's successor but said the board would meet in the immediate future.

Brush Engineered Materials (NYS:BW) forecast higher second- and third-quarter sales citing strength in its key end-use markets, including telecom and computers, automotive, optical medical and data storage. Brushed Engineered said it now expects second-quarter sales growth to be at the high end of its previously announced 15 percent to 25 percent range, at $124 million to $127 million. The precious metal products supplier sees a second-quarter profit of 35 cents to 40 cents. It also said it expects the sales growth to continue through the third quarter and forecasts an increase of 15 percent to 25 percent from $106.2 million in the third quarter last year.

The New York Times Co. (NYS:NYT) said that it expects to post second-quarter earnings that are within the range of analyst estimates. See full story. Shares fell 27 cents to close at $45.89 ahead of the announcement.

Genentech (NYS:DNA) , Biogen Idec (NAS:BIIB) and Swiss drug giant Roche (OTC:RHHVF) jointly published positive Phase II clinical trial results that showed Genentech's Rituxan was effective in treating moderate-to-severe cases of rheumatoid arthritis. See full story.

Huntington Bancshares (NAS:HBAN) said its merger with Unizan Financial will be delayed because regulators are continuing to review the deal. See full story. Shares of Huntington closed down 19 cents to $21.95 ahead of the announcement. Unizan shares closed up 16 cents to $25.09.

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