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Earnings Preview For Oct. 7: Alcoa, CalAmp, Yum, Sealy
By: iStockAnalyst   Tuesday, October 07, 2008 2:08 PM
Symbols: AA, ARGN, CAMP, YUM, ZZ



The firm has taken some strategic steps including its appointment of Mike Zachan as vice president and general manager of the company's Aercept business unit on October 6. Early this month, the company settled a patent dispute case brought in U.S. federal court. It entered into a patent license agreement with Trackn, Inc. The company had lost some share value during the dispute. At 10:39am ET, shares of CalAmp surged by 7.83 percent to $1.24, after closing at $1.15 on Monday.

Yum Brands Inc (NYSE: YUM):

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Shares of the company gained ahead of its earnings report for the third quarter today. At 11:48am ET in New York, Yum! Brands, Inc. was trading higher by 21 cents or 0.74 percent to $28.52, after closing at $28.31 on Monday. Investors and economists are expecting the company to post a stronger quarterly report in the current period. The analysts on Wall Street indicate that the Louisville, Kentucky-based company is expected to post a profit of 54 cents a share on revenue of $2.78 billion.

The parent company of Taco Bell, KFC and Pizza Hut chains had reported better-than-expected second quarter report on higher sales in domestic and overseas. The firm has built its quarterly revenue on overseas sales including in countries like China, where the company has a strong presence. However, the market analysts are expecting the slowdown in consumer spending in China to affect its net income. Buckinghman Research analyst Mitchell J. Speiser has projected the company's profit to rise over 30 percent in the region.

At the same time, the firm may report higher same-store sales, or sales for stores open at least one year, for the quarter. Recent reports showed that KFC is closing stores in the U.S. but is opening new ones in China almost one a day. By June, the firm had opened 148 stores, pushing up the total to over 2,700 across the country.

Sealy Corp. (NYSE: ZZ):

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Sealy will be reporting third quarter results after the bell on Tuesday. One of the leading bedding manufacturers in the world is expected to report lower earnings for the quarter as its profit may be hurt by dropping consumer spending. The maker of expensive mattresses operates 26 plants in North America, and has over 7,000 retail outlets in the United States. However, the market analysts are not expecting the company's sales to improve for the next few quarters.

Analysts are projecting the firm to post yet another disappointing quarter with earnings per share at 46 cents. The firm has debts and may require more capital to improve its financial condition. The company is likely to rely on its discounted products for its revenue during the first half of 2009.

Amerigon Inc. (NASDAQ: ARGN), developer of products based on advanced thermoelectric (TE) technologies, recently announced that it has formed a partnership to develop a suite of heated and cooled bedding products with Sealy.

At 12:24pm ET, shares of firm where trading down by 7.89 percent or 39 cents to $4.55, after reaching day's high of $4.76. It has a dividend yield of 6.44 percent. The firm's stock hit a new 52-week low at $4.15 on Tuesday from previous low of $4.76.



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