STOCKS TO WATCH

Among the companies whose shares are expected to see active trade in Thursday's session are Google, MBIA, AstraZeneca, Proctor & Gamble, and Electronic Arts.

Google Inc. (GOOG:548.27, -2.25, -0.4%) is forecast to report fourth-quarter earnings of $4.44 a share, according to analysts polled by Thomson Financial.

MBIA Inc. (MBI) is projected to post a loss of $2.97 a share in the fourth quarter.

AstraZeneca Plc (AZN) is expected to report fourth-quarter earnings of 95 cents an ADR.

Procter & Gamble Co. (PG) is estimated to report fiscal second-quarter earnings of 97 cents a share.

Electronic Arts Inc. (ERTS) is likely to post earnings of 90 cents a share in the fiscal third quarter.

Mattel Inc. (MAT) is forecast to post fourth-quarter earnings of 73 cents a share.

Goodrich Corp. (GR) is estimated to post earnings of 91 cents a share in the fourth quarter.

Bristol-Myers Squibb Co. (BMY) is projected to report earnings of 34 cents a share in the fourth quarter.

MasterCard Inc. (MA) is expected to report fourth-quarter earnings of 72 cents a share.

Burger King (BKC) is likely to post fiscal second-quarter earnings of 32 cents a share.

Colgate-Palmolive (CL) is expected to report earnings of 89 cents a share in the fourth quarter.

Monster Worldwide Inc. (MNST) is estimated to post earnings of 38 cents a share in the fourth quarter.

CVS Caremark Corp. (CVS) is forecast to post earnings of 55 cents in the fourth quarter.

Raytheon Co. (RTN) is estimated to post earnings of 92 cents a share in the fourth quarter.

NewYork Times Co. (NYT:16.65, +0.59, +3.7%) is projected to report fourth-quarter earnings of 48 cents a share.

Wyeth (WYE: 39.70, -1.34, -3.3%) is likely to report fourth-quarter earnings of 79 cents a share.


Aflac Inc. (AFL: 60.82, -1.41, -2.3%) is forecast to post earnings of 80 cents a share in the fourth quarter.

Anheuser-Busch Co. (BUD:47.26, -0.03, -0.1%) is expected to post fourth-quarter earnings of 32 cents a share.

Nasdaq Stock Market Inc. (NDAQ:44.65, -0.84, -1.8%) is projected to post earnings of 47 cents a share in the fourth quarter.

McKesson Corp. (MCK:63.26, +1.01, +1.6%) is forecast to post fiscal third-quarter earnings of 80 cents a share.

Lear Corp. (LEA:27.05, -0.28, -1.0%) is likely to report earnings of 66 cents a share in the fourth quarter.

L-3 Communications Holdings (LLL:107.85, -0.39, -0.4%) is expected to report fourth-quarter earnings of $1.61 a share.

Elizabeth Arden Inc. (RDEN) is projected to report fiscal second-quarter earnings of $1.15 a share.

Harsco Corp. (HSC) is expected to post fourth-quarter profits of 70 cents a share.

Newell Rubbermaid Inc. (NWL) is likely to post earnings of 45 cents a share in the fourth quarter.

Hologic Inc. (HOLX) is projected to post fiscal first-quarter earnings of 48 cents a share.

Celgene Corp. (CELG) is estimated to post earnings of 31 cents a share in the fourth quarter.

Nova Chemicals Corp. (NCX) is expected to report fourth-quarter earnings of $1.01 a share.

E.W. Scripps Co. (SSP) is projected to post earnings of 70 cents a share in the fourth quarter.

RF Micro Devices Inc. (RFMD) is likely to report earnings of 7 cents a share in the fiscal third quarter.

Safeco Corp. (SAF) is estimated to post earnings of $1.44 a share in the fourth quarter.

VeriSign Inc. (VRSN) is expected to post fourth-quarter earnings of 29 cents a share.

Callaway Golf Co. (ELY) is forecast to report a loss of 19 cents a share in the fourth quarter.

Western Union Co. (WU) is likely to post earnings of 31 cents a share in the fourth quarter.

C.R. Bard Inc. (BCR:95.60, +2.75, +3.0%) is expected to report earnings of $1 a share in the fourth quarter.

Hanesbrands Inc. (HBI:24.76, -0.05, -0.2%) is forecast to report fourth-quarter earnings of 39 cents a share.

Marathon Oil Corp. (MRO:50.91, -1.22, -2.3%) is estimated to post earnings of 86 cents a share in the fourth quarter.

Sealy Corp. (ZZ:9.53, -0.13, -1.3%) is likely to report fourth-quarter earnings of 14 cents a share.

IMS Health Inc. (RX:21.13, -0.20, -0.9%) is forecast to post earnings of 42 cents a share in the fourth quarter.

ImClone Systems Inc. (IMCL:41.97, -1.79, -4.1%) is expected to post earnings of 27 cents a share in the fourth quarter.

Affymetrix Inc. (AFFX:20.77, -0.42, -2.0%) is estimated to report fourth-quarter earnings of 16 cents a share.

PPL Corp. (PPL:47.97, +0.27, +0.6%) is likely to report earnings of 54 cents a share in the fourth quarter.

Affiliated Computer Services (ACS:45.90, +0.15, +0.3%) is forecast to post fiscal second-quarter earnings of 83 cents a share.

Starwood Hotels & Resorts (HOT:42.90, -0.94, -2.1%) is expected to report fourth-quarter earnings of 67 cents a share.

Brinks Co. (BCO:54.50, +0.17, +0.3%) is likely to report earnings of 74 cents a share in the fourth quarter.

After Wednesday's closing bell, Starbucks (SBUX:19.22, -0.75, -3.8%) reported fiscal first-quarter net income of $208.1 million, or 28 cents a share, compared with net income of $205 million, or 26 cents a share, a year ago. Sales rose 17% to $2.8 billion. Starbucks also said it will close 100 underperforming U.S stores and expects "low double-digit" earnings-per-share growth in 2008. This month, founder Howard Schultz returned as CEO, pledging to slow the pace of U.S. store openings, close underperforming stores, and accelerate global expansion.

Watch list

Aflac Inc.'s (AFL:60.82, -1.41, -2.3%) fourth-quarter earnings rose to $382 million, or 78 cents a share, from $332 million, or 67 cents a share, as revenue benefited from the strengthening of the yen, the company said. Revenue increased to $4.02 billion from $3.69 billion a year earlier. Analysts had expected earnings of 80 cents a share on revenue of $3.96 billion. The insurance provider said it expects 2008 operating earnings, excluding the impact of the yen, of $3.70 to $3.76 a share on a sales increase of 8% to 12%. Wall Street, on average, expects 2008 earnings of $3.83 a share. Analyst estimates typically exclude items.

Alliance Data Systems Corp.'s (ADS:42.70, -0.30, -0.7%) fourth-quarter net income fell to $33.9 million, or 42 cents a share, from $39.6 million, or 48 cents a share, a year earlier. The transaction processor said revenue grew to $602.7 million from $524.5 million. Analysts had expected cash earnings of 93 cents a share on revenue of $601 million. The company expects double-digit organic growth in 2008.

Earlier Wednesday, Alliance Data sued Blackstone Group LP (BX:18.65, -0.34, -1.8%) to force the private-equity firm to go through with its $6.4 billion acquisition of the company.

Amazon.com (AMZN:74.21, +0.26, +0.4%) report fourth-quarter earnings of $207 million, or 48 cents a share, compared to earnings of $98 million, or 23 cents a share, for the same period the previous year. Revenue grew 42% to $5.67 billion. Analysts were expecting earnings of 48 cents a share on revenue of $5.37 billion. For the first quarter, the company said it expects revenue to come in between $3.95 billion and $4.15 billion - ahead of the $3.92 billion predicted by analysts.

Ann Taylor Stores Corp. (ANN:22.83, +0.23, +1.0%) will close 117 underperforming stores between 2008 and 2010 and reduce staff as part of a restructuring program to "enhance profitability and improve overall effectiveness." Ann Taylor expects the program to result in ongoing annual pretax savings of about $50 million by fiscal 2010, with savings of about $20 million to $25 million in 2008. The company expects to incur a charge of 29 cents a share in fiscal 2007. Excluding expenses, the company backed its previous fiscal 2007 earnings outlook of $1.80 to $1.85 a share.

CACI International Inc.'s (CAI:42.05, -0.92, -2.1%) fiscal second-quarter earnings fell to $19.2 million, or 63 cents a share, from $20.5 million, or 65 cents a share, a year earlier. The information technology company said revenue increased to $577.8 million from $476.9 million a year ago. Analysts had predicted earnings of 63 cents a share on revenue of $559.1 million for the quarter. The company raised the lower end of its 2008 outlook to $2.60 to $2.80 a share from its previous view of $2.50 a share to $2.80 a share.

Covance Inc.'s (CVD:88.10, -0.95, -1.1%) fourth-quarter earnings rose to $50.9 million, or 78 cents a share, from $38.3 million, or 59 cents a share, as the company booked more than $500 million in net orders. The biopharmaceutical company said revenue increased to $411 million from $343 million. Analysts had expected earnings of 72 cents a share on revenue of $402 million. Covance said it expects 2008 earnings of $3.18 per share on "low- to mid-teens revenue growth." Wall Street, on average, anticipates 2008 earnings of $3.19 a share.

Crown Holdings Inc.'s (CCK:24.00, +0.06, +0.3%) fourth-quarter net income increased to $343 million, or $2.11 a share, from $162 million, or 97 cents a share, a year earlier. Revenue rose to $1.87 billion from $1.68 billion a year ago. Analysts had predicted fourth-quarter revenue of $1.78 billion.

Cytec Industries Inc.'s (CYT:52.69, +0.21, +0.4%) fourth-quarter net income fell to $47.6 million, or 97 cents a share, from $83.4 million, or $1.70 a share, a year earlier. The chemical company said net sales rose to $901.2 million from $793.6 million a year ago. Analysts had predicted fourth-quarter earnings of 83 cents a share and revenue of $852.5 million. Cytec said it expects year earnings in the range of $4.15 to $4.35 a share, up from 2007 adjusted earnings $3.90 a share.

Duke Realty Corp.'s (DRE:24.34, -1.09, -4.3%) fourth-quarter net income rose to $62 million, or 40 cents a share, from $55 million, or 37 cents a share, a year earlier. Funds from operations for the period rose to $123.5 million, or 80 cents a share, from $112.7 million, or 76 cents a share, a year earlier. The real estate investment trust said revenue from continuing operations increased slightly to $261.4 million from $256.4 million a year ago. Duke lowered its 2008 funds from operation guidance to a range of $2.60 to $2.90 a share from a range of $2.80 to $3 a share.

Dun & Bradstreet Corp. (DNB:87.75, -1.55, -1.7%) reported its fourth-quarter net income rose to $101.7 million, or $1.74 a share, from $91.2 million, or $1.46 a share, a year earlier. Revenue rose to $464.7 million from $424.2 million, the business information, data and services company said. Analysts had forecast earnings of $1.67 a share. Dun & Bradstreet also said it expects earnings in 2008 to range from $5.19 to $5.29 a share before non-core gains and charges.

DynCorp International Inc.'s (DCP:21.02, -0.31, -1.4%) fiscal third-quarter earnings increased to $12 million, or 21 cents a share, from $11.6 million, or 20 cents a share, a year earlier. The mission-critical technical services provider's revenue rose to $523.1 million from $517.5 million a year ago. Analysts had expected third-quarter earnings of 28 cents a share, on revenue of $602 million. DynCorp now expects fiscal 2008 earnings of $1 to $1.05 a share, on revenue of $2.13 billion to $2.18 billion. Previously, the company had expected full-year earnings of $1 to $1.10 a share, on revenue of $2.3 billion to $2.4 billion. Wall Street is looking for fiscal 2008 earnings of $1.08 a share, on revenue of $2.29 billion.

Eagle Materials Inc.'s (EXP:34.53, -0.47, -1.3%) fiscal third-quarter net earnings declined to $22.4 million, or 50 cents a share, from $40.9 million, or 83 cents a share, a year ago. The cement manufacturer reported weakness in wallboard sales volumes and prices, as revenue fell to $173 million, from $191.8 million a year ago. Analysts had expected per-share earnings of 47 cents a share on revenue of $174 million.

Drug maker Eli Lilly & Co. (LLY:51.35, -0.96, -1.8%) is in talks to settle civil and criminal probes into how the company marketed its antipsychotic drug Zyprexa, The New York Times reported on its Web site, citing several sources close to the matter. The settlement could reach up to more than $1 billion paid to federal and state governments, the paper reported.

Everest Re Group (RE:97.21, -0.05, 0.0%) said fourth-quarter net income came in at $12.2 million, or 19 cents a share, down from $206.4 million, or $3.15 a share, a year ago. Everest Re was expected to make $1.19 a share, according to analysts.

Fannie Mae (FNM:31.13, -1.78, -5.4%) cut President and Chief Executive Daniel H. Mudd's 2007 bonus to about $2.22 million. Mudd received a 2006 bonus of $3.5 million. The financial services company also said Mudd will receive a 2007 long-term incentive award of $9 million. Fannie Mae disclosed in January 2007 that Mudd would receive a 2007 and 2008 base salary of $990,000.

Fidelity National Financial (FNF:17.86, -0.75, -4.0%) reported a fourth-quarter loss of $44.9 million, or 21 cents a share, compared with net income of $71.2 million, or 34 cents a share, a year earlier. Analysts expected the company to earn 18 cents a share.

Harris Corp.'s (HRS:49.25, -0.12, -0.2%) fiscal second-quarter net income increased to $114.3 million, or 83 cents a share, from $94 million, or 67 cents a share, a year earlier. The communication products company's revenue rose to $1.32 billion from $1.02 billion in the year-ago period. Analysts had expected per-share earnings of 81 cents on revenue of $1.25 billion. Harris increased its forecast for fiscal 2008, saying it expects per-share earnings of $3.35 to $3.45.

Hologic Inc.'s (HOLX:61.80, -1.80, -2.8%) board approved a 2-for-1 stock split that, pending shareholder authorization, will be effected in the form of a dividend. The premium diagnostic, medical imaging system and surgical product supplier is currently awaiting approval to increase the number of common shares it can issue to 750 million from 300 million.

Merrill Lynch & Co. (MER:56.09, -1.38, -2.4%) said it won't pay 2007 bonuses to executives at the investment bank, according to a regulatory filing. The brokerage firm will make stock option grants to some executives to encourage them to stay as it tackles tough market conditions this year. Gregory Fleming, chief operating officer, will get 1.19 million options and Vice Chairman Robert McCann is getting 971,346 options, Merrill said.

Novellus Systems Inc. (NVLS23.41, -0.82, -3.4%) reported fourth-quarter net income of $52.9 million, or 47 cents per share, compared with income of $42.6 million, or 34 cents per share for the year-earlier period. Revenue was $363.5 million, compared with $438.5 million in the year-earlier period. Analysts had expected the company to report earnings of 36 cents per share on revenue of $361.4 million.

Pulte Homes Inc.'s (PHM13.57, -1.28, -8.6%) fourth-quarter loss widened to $874.7 million, or $3.46 a share, from $8.41 million, or 3 cents a share, due to the continued weakening of existing home sales. The home builder said revenue fell to $2.9 billion from $4.39 billion last year. New home orders for the fourth quarter fell 29% to 4,562 from 6,446 last year, and Pulte Homes' backlog as of Dec. 31 of 7,890 homes was valued at $2.5 billion, down from $3.58 billion the previous year. Pulte Homes expects a first-quarter per-share loss from continuing operations of 15 cent to 30 cents.

Snap-on Inc.'s (SNA 43.84, +0.62, +1.4%) fourth-quarter net income rose to $57.3 million, or 98 cents a share, from $38 million, or 64 cents a share, a year earlier. Analysts had predicted fourth-quarter earnings of 82 cents a share. Net sales increased to $742.9 million from $651.4 million a year ago, the company said. Snap-on expects to record $15 million to $20 million in 2008 restructuring expenses, down from $26 million in 2007. The company predicts sales and operating earnings for the year will exceed its 2007 results due to the cost reduction.

Boeing Boosts 4Q Profit on Plane Sales

Boeing Co. rode continued momentum from its commercial airplane business to a 4 percent increase in fourth-quarter profits Wednesday, topping Wall Street's expectations despite ongoing concerns over delays in its 787 Dreamliner program.

The world's second-largest commercial jet maker said it continues to address problems in assembling the first 787s and slightly reduced its estimate for both 2008 revenue and deliveries because of the previously announced glitches. It said it remains on the revised schedule announced earlier this month for the new plane, which has been pushed back three times and now isn't due to enter service until next year, but won't assess the impact of the delays on 2009 results until April.

The company characterized the outlook for its military contracting business and commercial airplane programs next year as "very strong," with strong earnings growth anticipated.

That helped lift Boeing shares, which had fallen 30 percent since last fall, by $2.82, or 3.5 percent, $83.78 in midday trading.

While avoiding talk of specific timeframes for the 787 program, CEO Jim McNerney said the fundamental technology of the airplane remains sound.

We believe in both the business case and the technology of the 787 and we look forward to getting the airplane in the hands of our customers as soon as possible," he said on a conference call.

Despite the 787 problems and the threat of a U.S. recession that could hurt its airline customers, McNerney was bullish about Boeing's near-term future and noted that U.S. carriers account for only 11 percent of its airplane backlog.

"Notwithstanding some recent events and market volatility, we continue to forecast an extended commercial aerospace cycle driven by strong economic growth and solid traffic demand in much of the world," he said. "Even if we encounter a more significant economic downturn in the future, I believe the industry is better positioned than in past cycles and Boeing is even better positioned within the industry to weather any storms."

Boeing's net income for the last three months of 2007 was $1.03 billion, or $1.36 per share, up from $989 million, or $1.29 per share, in the fourth quarter of 2006. That was 4 cents per share better than the consensus estimate of analysts polled by Thomson Financial.
Revenue was $17.5 billion, flat with a year earlier but slightly above analysts' forecast of $17.3 billion.

The company increased its guidance for 2008 earnings per share to between $5.70 and $5.85 from an earlier range of $5.55 to $5.75, still short of the Wall Street consensus estimate of $5.95. It also lowered its estimate of 2008 revenue by $500 million, to a range of $67 billion to $68 billion, due to the 787 delay.

Boeing's continued resurgence in the quarter was led by its Seattle-based commercial airplane manufacturing business, where operating earnings increased 46 percent to $973 million and revenue jumped 17 percent to $8.9 billion. Deliveries rose 9 percent to 112 and the record backlog grew 46 percent to $255 billion, reflecting strong demand for the 787 and other planes.

The Chicago-based company closed the gap on Airbus in aircraft deliveries but still ended the
year trailing its European rival for a fifth straight year, 453 to 441, while outpacing it in orders. It scaled back its estimate of 2008 deliveries by about five airplanes to between 475 and 480 to reflect the rescheduling of initial 787 deliveries into 2009.

The unit's continued success depends on how quickly Boeing can untangle snags involving the 787, Boeing's first newly designed jet since airlines started flying the 777 in 1995. It will be the world's first large commercial airplane made mostly of carbon-fiber composites, which are lighter and more durable than aluminum and don't corrode like metals.

Boeing said Jan. 16 it would push back the 787's inaugural flight until the end of the second quarter due to supply chain problems and slow progress on the assembly line, with the first delivery not expected until early 2009.

Analyst Paul Nisbet of JSA Research said the 787's status won't be fully known until the company succeeds in "powering up" or turning on the aircraft and its 92 electronic systems. That event was pushed back two weeks ago until early in the second quarter.

Despite the 787 concerns, Nisbet said: "It was a strong quarter. They've been just knocking the cover off the ball as far as orders, with 520 for the quarter, and with a (companywide) backlog of $327 billion. Those are just unheard-of numbers."

The company's St. Louis-based military contracting business saw earnings from operations decline 5 percent to $978 million and revenue fall 14 percent to $8.6 billion. The revenue drop was largely because results from a year earlier included two months of revenue from its Delta IV family of rockets, which are now part of United Launch Alliance, a joint venture with Lockheed Martin Corp.

Boeing had full-year earnings of $4.1 billion, or $5.28 per share, up 84 percent from $2.2 billion, or $2.85 per share, in 2006. Revenue climbed 8 percent to $66.4 billion from $61.5 billion.