WASHINGTON (MarketWatch) — Among the stocks that could see active trade in Wednesday’s session are Pep Boys — Manny, Moe & Jack, Research In Motion Ltd. and Sturm Ruger & Co.
TiVo Inc. , Lions Gate Entertainment Corp. , Teavana Holdings Inc. , Fresh Market Inc. TFM 0.00% , Tillys Inc. /zigman2/quotes/203876500/composite TLYS -2.15% , Booz Allen & Hamilton Inc. /zigman2/quotes/203977398/composite BAH -2.49% , Daktronics Inc. /zigman2/quotes/202861827/composite DAKT +1.24% , CorVel Corp. /zigman2/quotes/206548448/composite CRVL -0.21% , Pacific Drilling SA , Ituran Location & Control Ltd. /zigman2/quotes/204662755/composite ITRN +2.33% and RBC Bearings Inc. /zigman2/quotes/207482423/composite ROLL -1.45% are the main companies scheduled to release quarterly financial results on Wednesday.
On the eve of a special meeting of shareholders, automotive aftermarket retailer Pep Boys said late Tuesday it would receive $50 million as payment to settle any and all potential claims arising from termination of the company’s going-private agreement with Los Angeles-based Gores Group. Gores also agreed to reimburse Pep Boys for certain merger-related costs, and the special meeting has been canceled. Under terms of a deal announced three months ago, Gores would have acquired all outstanding common shares of Pep Boys for $15 a share in cash, a 24% premium over Philadelphia-based Pep Boys’ closing price on Jan. 27. It had a total enterprise value of about $1 billion. “The mild winter weather, restrained customer spending, delays in implementing new technology and disruption during store conversions have impacted recent results,” said Mike Odell, president and chief executive of Pep Boys, in a statement. “Our financial position is solid. Our current intention is to use our cash on hand and the settlement proceeds to pay down our term loan this year and then to refinance our senior subordinated notes in 2013, both in advance of their respective 2013 and 2014 maturities.” Pep Boys also scheduled a June 7 conference call to discuss first-quarter results.
Also late Tuesday, RIM delivered a sobering surprise, forecasting an operating loss as “likely” in the first quarter — part of a string of “challenging” quarters facing the maker of the BlackBerry handheld. The company also said it’s hired J.P. Morgan and RBC Capital Markets to weigh “various financial strategies” as part of RIM’s previously announced strategic review. Read more about Research In Motion.
Sturm Ruger /zigman2/quotes/200036418/composite RGR +0.34% said it’s back to normal in the company’s acceptance of orders from independent wholesale distributors, underscoring “very strong” market demand for firearms. New orders were suspended about nine weeks ago, as the gunmaker said it had received orders exceeding more than 1 million Ruger firearms in the first quarter. Sturm Ruger’s /zigman2/quotes/200036418/composite RGR +0.34% backlog “remains significantly above year-ago levels. Our production and shipments in the first quarter of 2012 increased more than 50% from the first quarter of 2011 and remain very strong,” the Southport, Conn.-based company said.
Along with reporting results for the fourth quarter ended March 31, EnerSys Inc. /zigman2/quotes/203178160/composite ENS -1.61% affirmed its earnings forecast for the first quarter of fiscal 2013. On an adjusted basis, the provider of stored energy systems for industrial applications said it anticipates generating a profit of 88 cents to 92 cents a share. The forecast excludes a charge of 3 cents a share from ongoing restructuring programs and acquisition expenses, EnerSys said. “In the fourth quarter our adjusted operating earnings as a percentage of sales significantly exceeded our 10% minimum target,” noted John Craig, chairman, president and CEO of Reading, Pa.-based EnerSys, in the earnings release. “Orders in fiscal 2013 have been trending positively and we expect continued strong operating results in our first quarter of fiscal 2013.”
The board of SLM Corp. /zigman2/quotes/205828282/composite SLM -0.67% authorized an additional $400 million for stock buybacks, the Newark, Del.-based provider of education-related financial services said. The $400 million will augment a repurchase program set at $500 million by the parent of Sallie Mae last January, at which time the board boosted SLM’s quarterly dividend on common stock by 25%, to 12.5 cents a share. A regular quarterly dividend of 12.5 cents a share will be paid June 15 to stockholders of record as of June 1, the company said.
UDR Inc. /zigman2/quotes/200760603/composite UDR -1.29% plans to sell 19 million common shares via a secondary public offering under a shelf registration declared effective by the Securities and Exchange Commission. The Denver-based company, real estate investment trust specializing in multifamily properties, said it would use net proceeds to repay about $364 million of 3.3% secured debt due 2012-2014, to redeem all outstanding 6.75% Series G preferred stock plus accrued and unpaid dividends and to pay down part of outstanding debt under its unsecured credit facility. Any balance would go for working capital and general corporate purposes, UDR said. Underwriters will have a 30-day option to buy an additional 15% of shares to be put up for sale if investor demand warrants.
Dow Jones Industrial Average component Verizon Communications /zigman2/quotes/204980236/composite VZ -2.69% announced a voluntary odd-lot program for small stockholders to add to their positions or to sell their stakes. Eligible stockholders, typically those who own fewer than 100 shares, will be assessed a processing fee of $1.50 a share purchased or sold in the program, with a maximum fee set at $40 per account. The program runs through July 6, said New York-based Verizon, which is seeking to reduce administrative costs.