U.S. HOT STOCK FUTURES: HOT STOCKS TO WATCH

First Published Wednesday, 16th January 2013 02:00 pm - © 2013 Dow Jones


Among companies with shares expected to actively trade in Wednesday's session are Chipotle Mexican Grill Inc. (CMG), Goldman Sachs Group Inc. (GS) and Wendy's Co. (WEN).

Chipotle Mexican Grill expects higher food costs to dampen its fourth-quarter earnings despite stronger-than-expected revenue. Shares of the fast-casual burrito chain fell 6.8% to $277 premarket.

Goldman Sachs' fourth-quarter profit surged as the bank recorded strong results from debt and equity underwriting, while financial advisory revenue also climbed. Shares rose 2.2% to $138.60 premarket as results sharply beat Wall Street estimates.

Wendy's fourth-quarter earnings soared as the burger chain's growth initiatives helped to improve revenue, although margins and same-store sales slipped. The company also forecast 2013 adjusted per-share earnings slightly above analysts' estimates. Shares rose 4.7% to $5.13 premarket.

Genworth Financial Inc. (GNW) said it will create a new parent company and contribute at least $100 million to its money-losing mortgage insurance unit in an effort to placate regulators and ratings companies that have threatened to downgrade the company to junk status. The creation of the new parent, to be owned by existing shareholders without any dilution, will allow the company to work around debt covenants. Shares rose 6.4% to $8.65 premarket.

Vera Bradley Inc. (VRA) slightly raised its fiscal fourth-quarter outlook amid better-than-expected indirect revenue and margins, though the handbag maker reported that lower-than-expected traffic during the holiday season is likely to result in flat same-store sales. Shares were up 8% at $24.85 in premarket trading.

Interactive Brokers Group Inc.'s (IBKR) fourth-quarter earnings fell 33% as weakened trading activity continued to weigh on the electronic broker and market-maker's revenue. Shares were down 2.1% at $13.80 in premarket trading as revenue missed expectations.

Carpenter Technology Corp. (CRS) said it expects its fiscal second-quarter earnings and revenue to improve compared with the year-ago period thanks in part to an acquisition. But the specialty metal company's view fell far short of Wall Street expectations amid softer demand for lower-value products, and shares fell 7.1% to $50.10 in premarket trading.

Cobalt International Energy Inc. (CIE) has launched an offering of 40 million shares, all of which are being sold by stockholders. The oil and gas exploration and production company had 410.6 million shares outstanding as of Sept. 30. Shares fell 6.5% to $25.02 premarket.

Five Below Inc. (FIVE) raised its fourth-quarter guidance as the teen discount retailer said customers responded well to its offerings and prices during the holiday season. However, shares slipped 1.9% to $31.24 premarket as Five Below also said certain shareholders, including members of the company's management team and board, are offering seven million shares. Five Below had about 54 million shares outstanding as of Nov. 29.

Printed circuit board manufacturer TTM Technologies Inc. (TTMI) said it expects to report fourth-quarter results at or somewhat above the high-end of previous guidance, but did not offer a reason. Shares jumped 7% to $7.94 premarket.

Watchlist:

Medical device company AtriCure Inc. (ATRC) plans to offer an undisclosed number of shares of its common stock to raise funds for general corporate purposes and working capital. The company had 16.7 million shares outstanding as of Oct. 29.

Christopher & Banks Corp. (CBK) raised its same-store sales guidance for the fiscal fourth quarter, as the women's clothing retailer said it is pushing forward on a turnaround plan.

FXCM Inc.'s (FXCM) retail and institutional trading volumes in December both declined from the month and year earlier, the online foreign-exchange broker said.

General Motors Co. (GM) said Tuesday its global profitability will "rise modestly" in 2013 on a pre-tax earnings basis, driven primarily by the ongoing strength in the U.S and Chinese car markets.

Gibraltar Industries Inc. (ROCK) expects to swing to a fourth-quarter profit despite posting slightly weaker net sales, citing a significant reduction in variable compensation expense and improved operating efficiencies. Analysts surveyed by Thomson Reuters had expected a loss for the quarter.

Linear Technology Corp.'s (LLTC) fiscal second-quarter profit edged up 1.1% as the chip maker noted signs of a demand pick-up at the end of the period.

Onyx Pharmaceuticals Inc. (ONXX) plans to offer 4.4 million shares. The drug developer had about 67.2 million shares outstanding as of Oct. 31.

Regional Management Corp. (RM) said it expects to report downbeat earnings for its fourth quarter, citing an increase in the provision for loan losses and other costs.

Stag Industrial Inc. (STAG) is offering 5 million shares and intends to use proceeds to pay down debt, fund acquisitions currently under contract and for general working capital purposes. The real-estate company had 34.9 million shares outstanding as of Nov. 7.

Ski-resort operator Vail Resorts Inc. (MTN) cut its earnings view for fiscal 2013, citing a slow start to the Colorado ski season.

Wausau Paper Corp. (WPP) said its decision to explore alternatives for its paper segment resulted from months of discussion and careful consideration by its board, rebutting claims made by activist stakeholder Starboard Value LP that the sale process was in response to Starboard's plans to nominate three members to the Wausau's board.

Write to Anna Prior at anna.prior@dowjones.com

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