Stocks to watch Friday: P&G, Kraft, Dolby
WASHINGTON (MarketWatch) -- Among the stocks that could see active trade in Friday's session are
The end of the week brings quarterly financial results from blue chip
Dow Jones Industrial Average component Kraft (KFT) said it would spin off its snacks and grocery units serving North America, to be known as as Kraft Foods Group, effective Oct. 1 after the close of New York trading. Terms call for eligible Kraft Foods stockholders to receive one share of Kraft Foods Group for every three of their Kraft Foods shares. The record date is not yet finalized, but it's expected to be in mid-September, the Northfield, Ill.-based company said as it reported second-quarter results late Thursday. Before that, common shares for both companies are expected to begin trading on a "when-issued" basis. Starting Oct. 2, Kraft Foods Group will trade on the Nasdaq Global Select Market under the symbol KRFT, while Kraft Foods will change its name to Mondelez International Inc. and trade under the symbol MDLZ. The company also announced directors who will sit on the boards of the two independent companies. Read more on Kraft's quarterly results.
Along with reporting second-quarter results that included year-over-year revenue growth of 89%, LinkedIn (LNKD) raised its full-year revenue target to a range of $915 million to $925 million, up from the $880 million to $900 million previously forecast. The Mountain View, Calif.-based company also revised higher its 2012 forecast for earnings before interest, taxes, depreciation and amortization on an adjusted basis, to a range of $185 million to $190 million from $170 million to $175 million previously. LinkedIn's projected revenue of $235 million to $240 million for the third quarter would be higher than the $228.2 million generated in the three months through June.
Along with reporting results for the third quarter ended June 29, Dolby Laboratories (DLB) updated its full-year profit forecast to reflect what President and Chief Executive Kevin Yeaman called "a challenging global economy." For fiscal 2012, San Francisco-based Dolby's now anticipating total revenue to range from $900 million to $920 million. Third-quarter and nine-month revenue amounted to $207.9 million and $701.5 million, respectively; revenue dropped from year-earlier levels for both reporting periods. The company also pegged net earnings in a range of $2.35 to $2.43 a share as well as profit on adjusted basis in a range of $2.75 to $2.83 a share.
American Water Works Co. (AWK) revised higher its 2012 outlook as the company reported second-quarter results late Thursday, partially reflecting greater demand for water. The Voorhees, N.J.-based company now estimates 2012 earnings for continuing operations in a range of $2.12 to $2.22 a share. The forecast assumes normal weather patterns will prevail for the balance of the year. However, the updated outlook includes 13 cents to 16 a share from increased pumpage experienced by American Water Works through the end of July. The company posted both higher revenue and profit in the June quarter compared to the prior year.
The board of