Ultimate Market Recap: Toyota Revving Up, SodaStream Soars 22%

Wall Street Watch: Toyota Resurrected, AOL Earnings & More

On Wednesday, Toyota Motor Corp. (NYSE:TM) reported that its net profit increased almost five times in the January to March quarter thanks to production returning to normal capacity after disruptions from last year’s earthquake. As Japan’s biggest car maker, defined by volume, the company saw a net profit of YEN 121.0 billion in the three months, rising from YEN 25.4 billion from the previous year due to solid U.S. and Japan sales. The numbers  beat analysts’ estimate for YEN 112.9 billion in net profit.

GlaxoSmithKline (NYSE:GSK) will present a $13 per share offer this week to Human Genome Sciences (NASDAQ:HGSI) after the latter previously declined the U.K. company’s proposal. The $2.6 billion offer is believed to be “full and fair” according to Glaxo and it thinks that Human Genome has had plenty of time to review the alternatives. But Glaxo is prepared to again go over its proposal.

AOL, Inc. (NYSE:AOL) reported a first quarter profit of $21.1 million ($0.22 cents per share) as compared to the previous year’s profit of $4.7 million ($0.04 cents per share). Revenue fell four percent to $529.4 million as analysts had estimated earnings of $0.07 cents per share from revenues of $526 million. Advertising revenue, which is the biggest top-line contributor, rose 5.2 percent to $330.1 million with a double-digit rise in third party network revenue.

A Closer Look: AOL Earnings Cheat Sheet>>

The bad news continues for Green Mountain (NASDAQ:GMCR) as its founder and Chairman Robert Stiller and director William Davis have been forced to resign from the company’s board. This occurred from margin calls that required the two to sell millions of shares in the company on Tuesday. The departures come after Green Mountain’s stock price decline last week thanks to a gloomy outlook in its fiscal quarter two report.

On Tuesday, Facebook Inc.’s roadshow hit Boston on Tuesday sans a main presentation with Chief Executive Mark Zuckerberg but more time for attendees’ questions than Monday’s New York session. Afterwards, some investors were motivated to invest while others were upset that Zuckerberg hadn’t shown up. It doesn’t mean that he wasn’t part of the circus; he instead went to private meetings with Boston asset managers such as Fidelity Investments, Wellington Management and BlackRock Inc. (NYSE:BLK), reported The Wall Street Journal.

5 Early Buzzers: Macy’s Drops 5%, Sodastream Surges 26%

Shares of Macy’s Inc. (NYSE:M) dropped more than 5 percent early Wednesday. The company reported net income of $181 million (43 cents per share), compared to $131 million (30 cents per share) a year earlier. However, last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 0.3 percentage point to 38.8 percent from the year-earlier quarter.

Walt Disney Co. (NYSE:DIS) shares climbed more than 1 percent higher in early trading to hit a fresh 52-week high. Disney reported that second-quarter net income jumped 21.3 percent to $1.14 billion (63 cents per share), compared to $942 million (49 cents per share) last year. The company reported adjusted net income of 58 cents per share, beating the mean estimate of 56 cents per share.

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Dollar Thrifty Automotive Group Inc. (NYSE:DTG) shares fell 1.07 percent after reporting first-quarter earnings inline with estimates. Net income came in at $40.4 million ($1.35 per share), compared to $16.5 million a year earlier. “We are pleased to report another record quarter, and the highest first quarter profit in the Company’s history,” said Scott L. Thompson, Chairman, President and Chief Executive Officer. “A strong used car market, combined with continued emphasis in the areas of cost control, productivity initiatives, fleet utilization and balance sheet management enabled us to achieve another record quarter, in spite of a competitive rate environment.”

Bed, Bath & Beyond Inc. (NASDAQ:BBBY) shares declined 1.8 percent after announcing it will acquire Cost Plus Inc. for $22 per share, valuing the deal around $520 million. The California based company contains 259 stores selling home furnishings and entertainment products and is expected to add per-share profit to Bed, Bath & Beyond this year after transaction and integration expenses.

Shares of Sodastream International Ltd. (NASDAQ:SODA) surged more than 26 percent early Wednesday. The company reported first-quarter net income of $10.1 million (48 cents per share), compared to $5.5 million (28 cents per share) a year earlier. Sodastream also increased its outlook for the year and now expects revenue of $384 million, compared to an old estimate of $370 million.

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Fossil, Dean Foods, STEC, Blue Nile, Sodastream Attract Active Traders May 9th

Fossil, Inc. (NASDAQ:FOSL): JPMorgan downgraded Fossil citing a lack of catalysts to move shares higher following yesterday’s 38% decline. The firm thinks Fossil’s business is in a period of transition as growth rates are decelerating and margins compressing, and lowered its price target for shares to $88 from $138. Note Fossil shares were upgraded this morning to Buy at Benchmark Co. Shares of Fossil, Inc. are trading 0.56% higher today.

Dean Foods Company (NYSE:DF): Sees positive free cash flow for rest of year, sees meaningful reduction in debt in 2012. Shares of Dean Foods Company are trading 6.6% higher today.

STEC, Inc. (NASDAQ:STEC): STEC sees Q2 adjusted EPS (26c)-(28c) versus. consensus (13c). Sees Q2 revenue $40M-$42M, consensus $51.63M. Shares of STEC, Inc. are trading 4.74% lower today.

Blue Nile, Inc. (NASDAQ:NILE): William Blair notes that Blue Nile’s annual guidance assumes a sharp recovery in earnings for the second half of the year. The firm believes management may be setting the bar too high, but adds it is still early in the year. William Blair keeps a Market Perform rating on shares of Blue Nile after the company’s Q1 earnings results missed consensus. Shares of Blue Nile, Inc. are trading 10.78% higher today.

Sodastream International Limited (NASDAQ:SODA): SodaStream, which sells soda-making machines, is rallying after the company reported much stronger than expected results and boosted its 2012 guidance. SodaStream, which said the results validate its decision to expand its business around the world, reported Q1 EPS of 55c, compared with the consensus estimate of 35c. Sales of the company’s soda making machines rose 15% compared with the first quarter of fiscal 2011 and sales of CO2 refills jumped 29%. Sales of flavors surged 52%. SodaStream expects its net income to jump 50% in fiscal 2012, compared with fiscal 2011. The company had previously expected its net income to increase 42%. Meanwhile, SodaStream now expects its FY12 revenue to jump 33% year-over-year. The company had previously anticipated that its revenue would increase 28%. In early trading, SodaStream rallied $6.49, or 22.23%, to $35.68. Shares of Sodastream International Limited are trading 22.72% higher today.

Active Stocks: Mercadolibre, Carrols, Generac, Jive Software, Scotts May 9th

Mercadolibre Inc (NASDAQ:MELI): MercadoLibre May 75 puts are active on total put volume of 3,500 contracts (2,700 calls). May call option implied volatility is at 52, September is at 53; compared to its 26-week average of 48 according to Track Data. Active volume suggests traders taking positions for additional price movement. Shares of Mercadolibre Inc are trading 10.93% lower today.

Carrols Restaurant Group, Inc. (NASDAQ:TAST): Carrols Restaurant sees 2012 capex approximately $30M-$35M  This includes $19M-$24M for remodeling more than 50 restaurants. Shares of Carrols Restaurant Group, Inc. are trading 1.35% lower today.

Generac Holdings Inc. (NYSE:GNRC): Goldman downgraded Generac based on valuation. Price target is $30. Shares of Generac Holdings Inc. are trading 5.61% lower today.

Jive Software Inc (NASDAQ:JIVE): BMO Capital increased its target on Jive after the company reported stronger than expected Q1 billings growth. The firm reports that its checks on the company remain positive, and it maintains an Outperform rating. Shares of Jive Software Inc are trading 5.8% lower today.

Scotts Miracle-Gro Co (NYSE:SMG): BMO Capital upgraded Scotts Miracle-Gro based on valuation. Price target lowered to $42 from $44. Shares of Scotts Miracle-Gro Co are trading 0% higher today.

5 Late Radar Names: Cisco and Priceline.com Head Lower

Shares of Cisco Systems Inc. (NASDAQ:CSCO) dropped more than 8 percent in late trading. The network company reported that third-quarter net income on a generally accepted accounting principles basis came in at $2.2 billion (40 cents a share) and non-GAAP net income of $2.6 billion (48 cents a share). However, Cisco guided down and explained on the conference call that Europe is in bad shape and will continue to get worse.

Priceline.com Inc. (NASDAQ:PCLN) shares pulled back 3.5 percent after the closing bell. Net income for the company jumped 73.7 percent to $182 million ($3.54 per share), compared to $104.8 million ($2.05 per share) a year earlier. “The Priceline Group’s hotel business booked 46 million room nights in the 1st quarter, up 47% over last year,” said Jeffery H. Boyd, President and Chief Executive Officer. “International gross bookings increased 54% (58% on a local currency basis), driven by strong hotel results at Booking.com and Agoda.com and continued growth at Rentalcars.com.”

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Activision Blizzard Inc. (NASDAQ:ATVI) shares edged .81 percent higher in extended trading. The video game company said first-quarter net income increased to $384 million (33 cents per share), compared to $211 million (42 cents per share) a year earlier. However, revenue declined 19.1 percent to $1.17 billion in the same period.

News Corp. (NASDAQ:NWSA) shares jumped 2.7 percent higher late Wednesday. The global media company announced that third-quarter net income rose to $937 million (38 cents per share), compared to $639 million (24 cents per share) a year earlier. Chairman and Chief Executive Officer Rupert Murdoch said, “Once again News Corporation showed strong operational momentum in the quarter, driven by significant growth at our Cable Network Programming and Filmed Entertainment segments. With our disciplined approach to monetizing our brands, I believe we are better situated than ever to capitalize on the increasing global demand for our superior content.”

Shares of Monster Beverage Corp. (NASDAQ:MNST) surged more than 13 percent. The energy beverage company reported strong financial results after the closing bell. For the first-quarter, net income increased to $76.1 million (41 cents per share), beating estimates of 38 cents per share by analysts.

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