February 19, 2014 / 3:48 PM / in 4 years

MARKET PULSE-Signet, Meadowbrook Insurance, Ocean Rig, SM Energy

(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks were mixed on Wednesday amid caution ahead of the release of minutes from the Federal Reserve's most recent policy meeting, and as investors brushed off weak housing data. The Dow Jones industrial average was up 0.51 percent at 16,213.12, the S&P 500 was up 0.26 percent at 1,845.57 and the Nasdaq Composite was down 0.04 percent at 4,271.214.

** SIGNET JEWELERS LTD, $92.49, +16.68 pct

** ZALE CORP, $20.9, +40.17 pct

Kay Jewelers parent Signet Jewelers agreed to buy smaller rival Zale Corp for about $690 million, cementing its position as the largest North American jewelry chain.

The offer of $21 per share represents a premium of about 41 percent to Zale’s close on the New York Stock Exchange on Tuesday. The stock traded as low as $3.76 in April.


The company’s drug Northera, which treats a rare form of low blood pressure associated with neurological disorders such as Parkinson’s disease, has won U.S. approval, the Food and Drug Administration said on Tuesday.

** COLUMBIA SPORTSWEAR CO, $86.83, +10.37 pct

The outdoor sportswear maker forecast a 15-17 percent jump in full-year sales after reporting quarterly results that blew past analysts’ estimates. The company also raised its quarterly dividend to 28 cents per share from 25 cents.

At least three brokerages raised their price targets on the stock. Janney Capital Markets raised its fair value on the stock to $70 from $65, while Canaccord Genuity increased its price target to $75 from $71. D.A. Davidson raised its price target to $87 from $83.

** SM ENERGY CO, $74.14, -17.24 pct

The oil and gas producer reported a lower-than-expected fourth-quarter profit on Tuesday due to a nearly 13 percent hump in operating costs.

The company earned $1.26 per share, excluding one-time items, below the average analyst estimate of $1.46, according to Thomson Reuters I/B/E/S.

BMO Capital Markets and RBC Capital Markets cut their price targets on SM Energy’s stock, saying the company’s oilfields in the Eagleford shale had turned out to be gassier than expected.


The insurer reported a surprise operating loss of 30 cents per share for the fourth quarter as its net earned premium fell more than 25 percent to about $170 million. Analysts on average had expected earnings of 12 cents per share, according to Thomson Reuters I/B/E/S.

** GARMIN LTD, $51.42, +9.01 pct

The navigation device maker reported a better-than-expected quarterly profit, helped by strong demand for aviation and fitness products. The company, which also forecast 2014 revenue above the average analyst estimate, has been looking to offset falling sales of its GPS devices that once dominated personal navigation.

** POTBELLY CORP, $20.229, -9.69 pct

The sandwich chain on Tuesday reported fourth-quarter revenue that missed analysts’ average estimate, hurt by a 0.7 percent decline in company-operated comparable store sales.

The company’s total revenue rose 1.7 percent to $74.8 million in the quarter ended Dec. 29. Analysts on average had expected revenue of $76.1 million, according to Thomson Reuters I/B/E/S.

** ELI LILLY AND CO, $56.62, +2.48 pct

An experimental cancer drug developed by the drug maker, touted by some to be the company’s next blockbuster, significantly improved survival rates in lung cancer patients. Lilly needs new drugs to offset declining sales of its older drugs as they lose patent protection.


** DEVON ENERGY CORP’S, $64.72, +2.88 pct

Devon Energy said it would sell some liquids-rich natural gas assets in Canada to Canadian Natural Resources for about $2.8 billion and posted a better-than-expected profit as it ramps up production of more lucrative oil.

** CARLYLE GROUP LP, $36.89, +4.03 pct

The private equity firm reported a higher-than-expected 216 percent rise in fourth-quarter earnings as the value of its funds jumped and the profits generated from the sales of assets soared.

** MATTRESS FIRM HOLDING CORP, $39.65, -3.90 pct

The specialty bedding retailer estimated fiscal 2013 earnings below analysts’ expectations on Tuesday, citing the weak U.S. consumer spending environment and the cold weather conditions in some of its primary markets.

The company said it expected adjusted earnings of $1.64-$1.66 per share for the year ended Jan. 28, down from $1.75-$1.83 it expected earlier.

Analysts on average were expecting a profit of $1.77 per share, according to Thomson Reuters I/B/E/S.

** OCEAN RIG UDW INC, $17.83, +5.63 pct

Offshore drilling contractor Ocean Rig, majority owned by drybulk shipper DryShips Inc, reported a better-than-expected profit for the fourth quarter, helped by higher revenue from contracts and lower costs. (r.reuters.com/xuf96v)

** CF INDUSTRIES HOLDINGS INC, $243, +7.43 pct

The U.S. fertilizer producer posted a lower fourth-quarter profit, but the fall from record-high earnings a year earlier was not as steep as analysts had expected.

** GOGO INC, $21.154, +5.77 pct

Evercore Partners upgraded the digital entertainment and in-flight communication equipment maker’s stock to “overweight”, citing expectations of positive fourth-quarter results on growth at its business aviation unit and market share gains.

The brokerage, however, cut its price target to $26 from $27.

** TEREX CORP, $41.36, -5.87 pct

The construction equipment maker forecast 2014 results largely below analysts’ estimates.

** HEALTHSTREAM INC, $30.21, -3.36 pct

The company, which provides IT solutions to healthcare organizations, reported fourth-quarter revenue above analysts’ estimates, helped by higher subscriptions.

Healthstream also said consolidated revenues for 2014 would grow by 22-26 percent.

** ZEBRA TECHNOLOGIES CORP, $63.95, +12.71 pct

The printing device maker reported better-than-expected sales for the fourth quarter and forecast current-quarter sales way ahead of expectations.

The company said it recorded sales growth in all product and service categories in the fourth quarter and added that it sees an improved business pipeline.

** OMNICARE INC, $61.41, -4.85 pct

The pharmacy services provider reported a lower-than-expected profit in the fourth quarter and forecast full-year adjusted earnings below analysts’ estimates.

** DORMAN PRODUCTS INC, $56.771, +9.53 pct

The auto replacement parts supplier reported fourth-quarter results above analysts’ estimates due to strong vehicle demand in the United States.

** LITHIA MOTORS INC, $64.18, +8.80 pct

The U.S. auto dealer reported a fourth-quarter profit above the average analyst estimate due to higher revenue from stores open at least one year.

** SIX FLAGS ENTERTAINMENT CORP, $40.39, +5.59 pct

The theme park operator reported better-than-expected quarterly results, helped by higher admissions, in-park, sponsorship and accommodation revenue.


The hardwood flooring retailer reported fourth-quarter results that beat analysts’ estimates, helped by a 15.6 percent jump in comparable store net sales.

** GENESCO INC, $69.49, -3.69 pct

Goldman Sachs initiated coverage on the footwear retailer’s stock with a “sell” rating and a $63 price target and raised concerns about the company’s expansion into licensed sports apparel retail.

“While currently performing well with the benefits of consolidation and scale, this business is more competitively vulnerable than the rest of Genesco’s portfolio, in our view,” Goldman Sachs analysts wrote in a note to clients. (Compiled by Shailaja Sharma in Bangalore; Editing by Sriraj Kalluvila)

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