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Stocks to Watch: American Eagle, HP, Toll Bros.

Dell (DELL):

After Tuesday's closing bell, the PC maker forecast full-year earnings of at least $1.70 a share, below Wall Street's consensus view for a profit of $1.85 a share. Dell said the outlook includes 2 to 3 cents of dilution from its acquisition of Quest Software.

For its fiscal third quarter ending in October, Dell sees a sequential revenue decline of 2-to-5% from its second-quarter total of $14.48 billion. That implies a revenue range of $13.75 billion to $14.19 billion for the third quarter, well short the current average analyst view of $14.52 billion.

Dell attributed the disappointing outlook, which accompanied mixed second-quarter results, to an "uncertain economic environment, competitive dynamics and soft Consumer business."

The stock closed Tuesday's regular session at $12.34, and was down nearly 6% in pre-market action.

Williams-Sonoma (WSM):

Shares of the San Francisco-based specialty retailer surged late Tuesday after the company beat Wall Street's expectations for its fiscal second-quarter results and lifted its outlook for the full year.

Williams-Sonoma reported second-quarter earnings of $43.4 million, or 43 cents a share, for the July-ended quarter on revenue of $874.3 million, topping the average estimate of analysts polled by Thomson Reuters for a profit of 41 cents a share on revenue of $864.4 million.

For the full year ending in January, the company now sees non-GAAP earnings of $2.44 to $2.51 a share on revenue ranging from $3.975 billion to $4.025 billion. The current consensus view calls for earnings of $2.51 a share on revenue of $4.009 billion.

"During the quarter, we delivered strong performance in revenues, operating margin and earnings per share," said Laura Alber, the company's president and CEO, in a statement. "Diluted EPS grew 16% on revenue growth of 7%, with comparable brand revenue growth accelerating from 5.4% in Q1 to 7.4% in Q2. Importantly, we drove this growth in revenues and earnings while simultaneously investing in our long-term growth initiatives."

The stock closed Tuesday at $38.23, and was up 9.5% before the open.

Intuit (INTU):

The maker of tax preparation and accounting software applications like TurboTax and QuickBooks reported a non-GAAP profit of $19 million, or 3 cents a share, on revenue of $651 million after Tuesday's close.

The average estimate of analysts polled by Thomson Reuters was for earnings of 6 cents a share in the July-ended quarter on revenue of $652.5 million.

"Our results and our outlook reflect the steady strength of our core businesses and Intuit's resilience in the choppy macroeconomic environment," said Brad Smith, the company's president and CEO, in a statement. "As consumers and small businesses benefit from our broad and healthy portfolio of offerings, we are confident in our ability to continue to deliver double-digit growth with margin expansion."

Intuit also announced a 13% increase in its quarterly dividend to 17 cents a share from 15 cents a share and forecast non-GAAP earnings of $3.32 to $3.38 a share on revenue ranging from $4.55 billion to $4.65 billion for fiscal 2013.

Fifth Third Bancorp (FITB):

The Cincinnati, Ohio-based bank said late Tuesday it's received approval of its capital plan, from the Federal Reserve. The plan includes the potential increase of its quarterly dividend to 10 cents a share from the current payout of 8 cents and a possible stock buyback program.

Reflective of the approval, Fifth Third said its board has signed off on a share repurchase authorization of up to 100 million shares. The bank expects to consider the dividend increase at its next regularly scheduled board meeting in September.

Shares of Fifth Third closed Tuesday at $14.39, up more than 40% in the past year.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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AEO $16.41 0.49%
BBY $31.80 0.86%
HPQ $12.86 -12.00%
TOL $37.69 0.86%
DELL $0.00 0.00%


Chart of I:DJI
DOW 17,783.28 -30.11 -0.17%
S&P 500 2,089.93 +1.06 0.05%
NASDAQ 5,123.0710 +6.9280 0.14%

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