Updated from 8:24 a.m. ET to include information on American Eagle, Hewlett-Packard.
NEW YORK ( TheStreet) -- These stocks were making headlines ahead of Wednesday's opening bell:
The Pittsburgh-based fashion apparel retailer reported an in-line profit for its fiscal second quarter and lifted its full-year earnings outlook early Wednesday.The company said it now sees earnings from continuing operations of $1.33 to $1.36 a share for the year vs. the current average estimate of analysts polled by Thomson Reuters for a profit of $1.32 a share. For the third quarter ending in October, American Eagle sees earnings from continuing operations of 37 to 38 cents a share. Hewlett-Packard (HPQ - Get Report): The Dow component is slated to report its fiscal third-quarter results after Wednesday's opening bell. The average estimate of analysts polled by Thomson Reuters is for earnings of 98 cents a share in the July-ended period on revenue of $30.1 billion. The sell side is skeptical ahead of the report with 23 of the 32 analysts covering the stock at either hold (17) or undeperform (6). HP shares closed Tuesday at $19.93, down more than 20% so far this year. Toll Bros. (TLB): The Horsham, Pa.-based luxury home builder reported fiscal third-quarter earnings of $61.6 million, or 36 cents a share, on revenue of $554.3 million, ahead of the average estimate of analysts polled by Thomson Reuters for a profit of 18 cents a share on revenue of $510.1 million. David Yearley, Toll's CEO, also offered up a positive outlook, saying the company is " enjoying the most sustained demand we've experienced in over five years." "Three weeks into our fourth quarter, our non-binding reservation deposits (a precursor to future contracts) are up 59% compared to the same period in FY 2011," he said. "The pace of our contract growth has far exceeded the national housing data as we are gaining market share." The company expects to deliver between 800 and 1000 homes in its fiscal fourth quarter ending in October, a level it said would produce full-year revenue of $1.71 billion to $1.84 billion and total deliveries of between 3000 and 3200 homes. The stock closed Tuesday at $31.81, and was called up nearly 4% ahead of the bell. Best Buy (BBY - Get Report): Wedbush Morgan downgraded shares of the Minneapolis-based consumer electronics retailer to underperform and cut its 12-month price target to $14.50 from $20, citing an "unclear outlook, deteriorating fundamentals and a new CEO who lacks retail experience." Best Buy's stock closed Tuesday at $17.91, down more than 29% in the past year. The shares were off nearly 2% ahead of the open. "We believe Best Buy has been unable to stem sustained comps declines and eroding margins, and remains at a significant disadvantage to its lower-priced and lower-cost peers," the firm said. "Our price target reflects a P/E multiple of ≈ 5x our revised FY:14 EPS estimate of $2.90, and is well below Best Buy's historical 12-15x multiple." Wedbush said it thinks the company needs to make changes to substantially reduce its overhead at the store level. "We believe that Best Buy's store level economics place it at a ≈ 10% price disadvantage to online retailers, and we believe that increasingly sophisticated consumers with mobile Internet access will value lower prices over service, ultimately making Best Buy's big boxes obsolete," the firm said.