ADC, Costco, First Horizon, McDonald's: U.S. Equity Preview

By Elizabeth Stanton

July 23 (Bloomberg) -- The following companies may have unusual price changes in U.S. markets today. Stock symbols are in parentheses after company names, and prices are as of 9 a.m. in New York, unless otherwise stated.

ADC Telecommunications Inc. (ADCT US) fell 23 percent to $10.35. The maker of telephone equipment for AT&T Inc. said fiscal 2008 profit was likely to be 18 cents to 26 cents a share, down from a previous range of 31 cents to 39 cents.

Amerigroup Corp. (AGP US) rose 6.5 percent to $27 after the close of U.S. exchanges yesterday. The manager of government health plans agreed to pay $225 million to the U.S. and Illinois to settle a lawsuit alleging the company wrongfully denied coverage to pregnant women eligible for Medicaid.

Anadigics Inc. (ANAD US) slumped 22 percent to $6.90. The maker of chips for mobile phones predicted third-quarter profit in the 10-to-14 cents a share range, less than the average analyst estimate of 18 cents.

CEC Entertainment Inc. (CEC US) added 12 percent to $33 in extended trading yesterday. The owner of Chuck E. Cheese's restaurants said it expects third-quarter profit of as much as 60 cents a share, higher than the 55 cents average analyst estimate from a Bloomberg survey.

Costco Wholesale Corp. (COST US) fell 12 percent to $63.39. The largest U.S. warehouse-club chain said earnings will be ``well below'' analysts' estimates after surging energy prices increased the retailer's costs and made selling gasoline less profitable.

BJ's Wholesale Club Inc. (BJS US), the third-biggest, fell 10 percent to $36.50.

E*Trade Financial Corp. (ETFC US) fell 11 percent to $3.60. The fourth-largest online brokerage by client assets posted a second-quarter loss of $94.6 million after its provision for bad loans surged more than 10-fold and trading commissions fell.

Fannie Mae (FNM US) rose 11 percent to $14.88 and Freddie Mac (FRE US) climbed 7.7 percent to $10.45. The House of Representatives is set to vote today on a rescue plan for government-sponsored mortgage-finance companies, said Representative Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee.

First Horizon National Corp. (FHN US) rose 11 percent to $10.25. Tennessee's biggest bank was upgraded to ``buy'' from ``neutral'' at Goldman Sachs Group Inc., which predicted the price will reach $12.50 within 12 months. The shares are ``too cheap, even in a deteriorating environment,'' analysts led by Richard Ramsden in New York wrote in a report.

Intuitive Surgical Inc. (ISRG US) climbed 13 percent to $315.74. The maker of a robot to aid in surgery said in a statement on Prime Newswire that second-quarter profit increased 67 percent, more than analysts expected, on higher sales of the machine and its related equipment.

Infinera Corp. (INFN US) added 13 percent to $10.20. The maker of high-speed computer-networking equipment for Deutsche Telekom AG rose after it reported its second consecutive quarterly profit on a jump in sales.

McDonald's Corp. (MCD US) rose 1.5 percent to $61.01. The world's largest restaurant company posted a $1.19 billion profit in the second quarter, spurred by European sales of hamburgers and chicken sandwiches. The earnings beat the average analyst estimate.

Philadelphia Consolidated Holding Corp. (PHLY US) rose 63 percent to $57.85. Tokio Marine Holdings Inc., Japan's largest insurer, agreed to buy the commercial property and casualty insurer for $4.7 billion, or $61.50 a share, in cash. That's 73 percent more than the Bala Cynwyd, Pennsylvania-based company's closing price of $35.55 yesterday.

VMWare Inc. (VMW US) fell 15 percent to $32.45. The biggest maker of software that lets computers run multiple operating systems, cut its annual sales forecast amid competition from Microsoft Corp. and slowing technology spending.

Washington Mutual Inc. (WM US) slid 3.8 percent to $5.60. The biggest U.S. savings and loan reported a $3.3 billion second- quarter loss as tumbling home prices left a record number of borrowers unable to keep up with mortgage payments.

Yahoo! Inc. (YHOO US) advanced 2.3 percent to $21.90. The Internet company that added activist investor Carl Icahn to its board yesterday said sales, excluding fees passed on to partner sites, rose 8.2 percent to $1.35 billion, compared with the $1.38 billion average of estimates compiled by Bloomberg.

Zimmer Holdings Inc. (ZMH US) fell 9.8 percent to $63.94. The artificial-joint maker suspended marketing of a product used in hip replacement surgery and lowered its earnings forecast for the year. Some U.S. surgeons have reported that Zimmer's Durom cup, a hip socket introduced in 2006, loosened after being implanted.

To contact the reporter on this story: Katherine Greene in New York at kgreene8@bloomberg.net.