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

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:

American Eagle ( AEO):

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):

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):

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.

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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