Stocks to Watch, Dec. 14: ADC, Winnebago

SAN FRANCISCO – Among the companies whose shares are expected to see active trade in Wednesday's session are ADC Telecommunications Inc., Winnebago Industries Inc. and Arena Pharmaceuticals Inc.

Apogee Enterprises Inc. (APOG) is expected to post third-quarter earnings of 26 cents a share, according to two analysts polled by Thomson First Call.

Winnebago Industries Inc. (WGO) is seen posting a fiscal first-quarter profit of 42 cents a share.

After Tuesday's closing bell, ADC Telecommunications Inc. (ADCT) posted sharply lower profit in the fourth quarter, though revenue improved, owing to acquisitions and higher sales of Internet-related networking gear.

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American National Insurance Co. (ANAT) said its subsidiary property and casualty companies have increased their estimated after-tax loss estimate from Hurricane Katrina to $79.4 million. American National, based in Galveston, Texas, said the estimated pre-tax loss before reinsurance is $301 million. Previously, the insurer had estimated that its property and casualty subsidiaries faced a pre-tax loss, net of reinsurance, from Hurricane Katrina of $42 million.

Arena Pharmaceuticals Inc. (ARNA) said it has seen positive results from its Phase IIb clinical trial for APD356, its drug candidate for the treatment of obesity. The San Diego-based company said over the 12-week treatment period there was a highly statistically significant average weight loss in patients taking APD356 compared to the placebo group. The trial enrolled 469 male and female obese patients. Arena said APD356 was generally well-tolerated at all doses investigated in the trial and there were no apparent effects on heart valves or pulmonary artery pressures.

Ashworth Inc. (ASHW) said it plans to delay the release of its fourth-quarter results by one week to Dec. 22. The Carlsbad, Calif.-based golf sportswear company also reaffirmed its fourth-quarter outlook of a loss of $2.1 million to $2.4 million, or 15 cents to 17 cents a share, on revenue of about $55 million.

Baidu.com (BIDU) said it will release a total of up to 3 million outstanding ordinary shares from lock-up restrictions, effective Dec. 19. The early partial release of shares will allow the sale and transfer of shares by shareholders who were subject to the restrictions as of Dec. 2, said the Beijing-based Internet search provider.

Digi International Inc. (DGII) said it now expects earnings in its fiscal first quarter of 7 cents to12 cents a share, excluding the impact of stock-based compensation expenses, on revenue of $31.5 million to $34 million. The company had previously forecast first-quarter earnings of 12 cents to 17 cents a share, excluding the same items, on revenue of $34 million to $37 million. Digi said it believes that the lower-than-anticipated revenues and the related earnings impact are due to certain customer orders being moved into subsequent quarters, industry softness in North American channel sales across product lines, and new product sales not ramping up as quickly as expected.

Horace Mann Educators Corp. (HMN) said it expects fourth-quarter pretax losses of $13 million to $16 million from Hurricanes Rita and Wilma. The Springfield, Ill.-based insurance company estimated the total impact of catastrophe losses and loss adjustment expenses in the quarter at $16 million to $21 million pretax. Horace Mann also lowered its 2005 earnings forecast before realized investment gains and losses to a range of $1.50 to $1.60 a share from $1.70 to $1.80 a share.

Human Genome Sciences Inc. (HGSI) said it plans to spin off its CoGenesys division as an independent company. CoGenesys, which was created in the first quarter of 2005, will be provided a $10 million start-up loan by Human Genome, to be repaid in cash or equity following completion of funding. The spinoff is contingent on the completion of CoGenesys' funding by no later than May 31. In related moves, Human Genome's President and Chief Scientific Officer Craig Rosen and Chief Financial Officer Steven Mayer will resign Dec. 31. Rosen will become CoGenesys' executive chairman and chief scientific officer, and Mayer will become chief executive of CoGenesys. Human Genome CEO H. Thomas Watkins will assume the additional title of president.

Inamed Corp. (IMDC) said its board has decided to recommend to shareholders that they accept Allergan's offer to acquire Inamed. According to terms of the proposed deal, Allergan would exchange $84 in cash or 0.8498 of a share of Allergan common stock for each outstanding common share of Inamed.

Martek Biosciences Corp. (MATK) reported fiscal fourth-quarter net earnings of $4.89 million, or 15 cents a share, compared with $35.29 million, or $1.16 a share, a year ago. Revenue was $56 million, down from $59.66 million last year. The Columbia, Md.-based company said gross margin on product sales was 43% vs. 40% in the year-ago period. It also said Chief Executive Henry Linsert will retire on June 30. He will remain as chairman. President Steve Dubin will succeed Linsert as CEO when Linsert steps down, the company said.

Plato Learning Inc. (TUTR) reported a fiscal fourth-quarter net loss of $13.9 million, or 59 cents a share. During the same period a year ago, Plato reported net earnings of $2.21 million, or 9 cents a share. The Minneapolis-based educational software provider posted revenue of $33.7 million vs. $42.4 million. Analysts surveyed by Thomson First Call had forecast fourth-quarter earnings of 6 cents a share on revenue of $34 million.

Select Comfort Corp. (SCSS) said it expects fourth-quarter same-store sales to meet or exceed its growth target of 7% to 12%, and for fourth-quarter revenue to meet or exceed its growth target of 15% to 20%. The Minneapolis-based mattress retailer also said it expects 2005 earnings to come in at the high end of its previous forecast of $1.05 to $1.08 a share, excluding stock-option expense. In 2006, Select Comfort expects expensing stock options will cost 2 cents to 3 cents a share per quarter on an after-tax basis.