Stocks Make Fractional Gains; Invitrogen and Weight Watchers Soar On Earnings

The major averages have lacked direction this morning, fluctuating between small losses and small gains. Positive earnings news are out from Nokia, Starbucks, Viacom, Walt Disney, and Eastman Kodak.

Among the premarket movers this morning are a number of stocks with attractive PowerRatings (for Investors). A PowerRating of 10 is highest, and our data from 1995 through 2006 show that stocks with high PowerRatings have historically outperformed over the next twelve months. Below are the price movement in premarket trading. The theme this morning for all three stocks was strong earnings and weak guidance. All three stocks are trading lower in premarket activity. But since these stocks all have attractive PowerRatings, this morning's weakness could be a short-term pullback that signals a buying opportunity.

• Invitrogen Corp. (IVGN@IVGN | Quote | Chart | News | PowerRating) is up 11.3% on Thursday to $79.10. The company reported second-quarter non-GAAP EPS of $1.15, compared to $0.85 in the year-ago quarter. EPS, on a GAAP basis, were $0.86, up from $0.36 in the same quarter last year. Earnings per share from continuing operations, on a GAAP basis, rose to $0.62 from the last year's $0.35 per share. Analysts expected EPS of $0.76.
  
  Revenues for the quarter grew 13% to $322 million from $285 million in the prior year quarter. Analysts estimated revenues of $297.31 million.
  
  In addition, the company said its Board of Directors has approved another $500 million share repurchase program. IVGN has the highest PowerRating of 10.
   
• Weight Watchers International (WTW@WTW | Quote | Chart | News | PowerRating) is up 10.7% on Thursday to $53.96 and has a high PowerRating of 9. The company announced Wednesday after the close that its second quarter net income was $58.0 million, versus $57.9 million in the second quarter of 2006.Earnings per share were $0.73 in the second quarter of 2007 versus $0.58 in the prior year period, up 26%. Excluding this non-recurring expense, earnings per share were $0.59 for the second quarter of 2006.
  
  For the second quarter of 2007, net revenues increased 20% or $65.2 million to $386.3 million, up from $321.1 million in the second quarter of 2006.
  
  Analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.71 per share on revenues of $364.33 million.
  
  The company raised the bottom end of its full year 2007 earnings guidance range, narrowing it to between $2.38 and $2.49 per share, which excludes $0.02 per share of non-recurring expense associated with the early extinguishment of debt in the first quarter of 2007.
  
  Analysts have a consensus earnings estimate of $2.43 per share for fiscal 2007.