Analyst Upgrades

• Parker-Hannifin (PH) to buy from hold at Deutsche Bank.
• JDSU (JDSU) to buy from hold at Citigroup.
• Noble Corp. (NE) to overweight from neutral at JPMorgan.
• Cerner (CERN) to buy from hold at Auriga.
• Cintas (CTAS) to outperform from neutral at RW Baird.
• American States Water (AWR) to buy from hold at Brean Murray.
• National Semiconductor (NSM) and Texas Instruments (TXN) to positive from neutral at Susquehanna.
• Lululemon (LULU) to buy from hold at ThinkEquity.
• DuPont Fabros (DFT) to top pick from outperform at RBC Capital.

Analyst Upgrades

• Verisk (VRSK) was upgraded to outperform from market perform at Wells Fargo.
• Marriott (MAR) was upgraded to outperform from market perform at Bernstein.
• Jefferies upgraded Teekay (TK) and Tsakos Energy (TNP) to Buy from Hold.
• Cadence Design (CDNS) was upgraded to sector perform from underperform at RBC Capital.
• BofA/Merrill upgraded NV Energy (NVE) to buy from underperform and Education Realty Trust (EDR) to neutral from underperform.
• Men's Wearhouse (MW) was upgraded to buy from hold at Stifel.
• William Blair upgraded Atheros (ATHR) to outperform from market perform.
• Freeport McMoran (FCX) was upgraded to buy from hold at Argus.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Alcatel-Lucent (ALU) received an analyst's downgrade following its disappointing earnings report and guidance.
• Chicago Bridge & Iron Co. (CBI) improved earnings prospects prompted one analyst to upgrade the stock.
• Cintas Corp. (CTAS) lower Q3 earnings topped analysts' expectations, and it reiterated its Q4 earnings guidance.
• CRA International Inc. (CRAI) received an analyst's downgrade following its earnings results for Q1.
• Discover Financial Services (DFS) reported a net loss for Q1 due to a needed boost to its loan loss reserves.

After the closing bell Thursday, Cincinnati-based Cintas (CTAS) announced that its third-quarter net income dropped to 32 cents per share from 47 cents per share a year ago.

The firm blamed the drop on weak demand for work uniforms, which Cintas produces. Quarterly revenue totaled $861.8 million, down 5.2% from the prior year. Expectations called for Cintas to earn 30 cents per share. Looking ahead, the company reiterated its fourth-quarter earnings outlook of 30 to 34 cents per share.

Here are a few highlights from this past week's earnings coverage on BloggingStocks:

• Cintas Corp. (CTAS) received an analyst's downgrade following its Q2 earnings report.
• ConAgra Foods Inc. (CAG) shares spiked after it posted better-than-expected Q2 earnings.
• Finish Line Inc. (FINL) posted surprise Q3 earnings, ending a streak of quarterly losses.
• Giga Media Ltd. (GIGM) was downgraded due to its disappointing Q2 report and lack of visibility.

Even in a holiday shortened week so close to the end of the calendar year, there are still some earnings reports dribbling in. Question is, will any of the companies reporting quarterly results this week offer up a gift for investors?

Apropos of the season, analysts surveyed by Thomson Reuters have high expectations for American Greetings Corp.'s (AM) fiscal third quarter 2010 earnings. The nation's second largest provider of greeting cards announced record second quarter results and declared a quarterly dividend during the three months that ended in November. American Greetings is expected to report that earnings rose 43.9% from a year ago to $0.66 per share. Revenue for the quarter is expected to total $445.4 million, or 1.9% lower than a year ago. So far, the full-year forecast is for its profit to more than double to $2.00 per share while revenue falls 5.6% from a year ago to $1.6 billion. This Cleveland-based company creamed earnings estimates in the past two quarters.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVID) sees strong Q1 results driven by Guitar Hero.
• Allegheny Technologies Inc. (NYSE: ATI) raised its Q2 earnings guidance ahead of its report.
• Cintas Corp. (NASDAQ: CTAS) strong Q4 and full-year results included a record quarterly revenue.
• Citigroup (NYSE: C) posted better-than-expected results despite a big loss on further write-downs.
• eBay Inc. (NASDAQ: EBAY) reported better-than-expected results and offered a soft outlook (see transcript).
• Fastenal Co. (NASDAQ: FAST) posted strong Q2 earnings despite the housing slump but lower revenues.
• Grainger Inc. (NYSE: GWW) posted strong Q2 results on expansion in Mexico and China.
• Harley-Davidson Inc. (NYSE: HOG) beat Q2 expectations despite profit and revenue declines.
• International Business Machines Corp. (NYSE: IBM) easily topped Wall Street earnings expectations.
• Johnson & Johnson (NYSE: JNJ) beat Q2 estimates and raised its full-year forecast (see transcript).
• Kimberly-Clark Corp. (NYSE: KMB) warned of lower Q2 earnings due to energy and distribution costs.
• Merrill Lynch & Co. (NYSE: MER) reported worse-than-expected Q2 results on further write downs.
• Microsoft Corp. (NASDAQ: MSFT) earnings surged but investors were put off by its full-year guidance.
• Procter & Gamble Co. (NYSE: PG) reaffirmed its guidance following the Kimberly-Clark warnings.
• United Technologies Corp. (NYSE: UTX) beat Q2 estimates, lifting shares from a recent 52-week low.
• ValueClick Inc. (NASDAQ: VCLK) posted weak results and warned about the second half of the year.

For more highlights from this week, see: Google, Intel, JPMorgan, Coca-Cola, Nokia and others

The earnings crunch continues next week. Among companies scheduled to report are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Merck (NYSE: MRK), Texas Intruments (NYSE: TXN), Caterpillar (NYSE: CAT), Halliburton (NYSE: HAL), United Parcel Service (NYSE: UPS), Wachovia (NYSE: WB), Yahoo! (NASDAQ: YHOO), Amazon (NASDAQ: AMZN), Anheuser-Busch (NYSE: BUD), AT&T Inc. (NYSE: T), McDonald's (NYSE: MCD), PepsiCo (NYSE: PEP), Pfizer (NYSE: PFE), Boeing (NYSE: BA), Hershey (NYSE: HSY), and Southwest Airlines (NYSE: LUV).

Visit AOL Money & Finance for more earnings coverage.

After false starts in merchandising categories like higher-end women's fashions, Wal-Mart (NYSE: WMT) may have hit on a new product segment that is a real winner for the world's largest retailer.

Consumer electronics. According to (subscription required) an analyst at Bear Stearns "Wal-Mart's sales of electronics will increase at a rate of at least 10% to 12% this year." The big company's aggressive move into the market is seen as hurting Best Buy (NYSE: BBY) and Circuit City (NYSE: CC).

According to The Wall Street Journal, Wal-Mart has been able to add Toshiba and Dell (NASDAQ: DELL) computers, Verizon Wireless products, and Apple (NASDAQ: AAPL) iPods to the list of electronics that it markets.

But, there is one flaw in Wal-Mart's pitch. The stores are still likely to be considered down-scale by many US consumers.

One of the advantages of going to a Best Buy is that almost all of the products are higher-end electronics. The stores are staffed by trained specialists who have a fairly wide knowledge of the products that the retailer is selling.

At Wal-Mart consumers have to make their way past groceries, cheap clothes, and the gun and ammo department to get to the TVs and computers. There are a lot of people who may be put off with that.

Would you like some shot gun shells with that wide screen TV?

Douglas A. McIntyre is a partner at 24/7 Wall St.

MOST NOTEWORTHY: Labopharm (DDSS), Dell (DELL) and Nasdaq (NDAQ) were today's noteworthy downgrades:

• Labopharm Inc. (NASDAQ: DDSS) was downgraded to Neutral from Buy at Merrill Lynch and to Market Perform from Outperform at Leerink Swann after the 2nd approval letter from the FDA said Tramadol did not show efficacy. CIBC World Markets downgraded shares of Labopharm to Sector Performer from Outperformer and at Canaccord Adams to Sell from Hold.
• Dell Inc. (NASDAQ: DELL) was downgraded to Neutral from Buy at Merrill Lynch, which recommended investors take profits following the strong earnings reports. The firm does not believe the drivers behind the earnings upside are sustainable. Dell was also downgraded at Morgan Stanley, to Equal Weight from Overweight, based on valuation.
• The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) was downgraded to Equal Weight from Overweight at Lehman, as the firm believes the stock is range-bound for the next several months following the OMX acquisition announcement.

OTHER DOWNGRADES:

• Robert W Baird downgraded shares of DiamondRock Co. (NYSE: DRH) and Chesapeake Utilities Corp. (NYSE: CPK) to Neutral from Outperform on valuation.
• Bear Stearns downgraded shares of Emmis Communications Corp. (NASDAQ: EMMS) to Underperform from Peer Perform, as the firm does not believe the CEO will make another bid to take the company private.
• Matrix USA downgraded shares of Jabil Circuit Inc. (NYSE: JBL) to Hold from Buy.
• Morgan Stanley downgraded shares of Cintas Corp. (NASDAQ: CTAS) Underweight from Equal Weight, citing growth concerns, and downgraded shares of Virgin Media Inc. (NASDAQ: VMED) to Equal Weight from Overweight, citing higher customer churn and weaker pricing power.
• Goldman Sachs downgraded shares of RadioShack Corp. (NYSE: RSH) to Neutral from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MORE NOTEWORTHY: The aluminum sector, National City Corp (NCC), MGM Mirage (MGM) and Domtar Corp (UFS) were some of today's notable downgrades:

• Prudential downgraded the aluminum industry to Unfavorable from Favorable, cutting cut Alcoa Inc (NYSE: AA) to Neutral from Overweight and Alcan Inc (NYSE: AL) to Underweight from Overweight. Prudential cited the increased Chinese output growth and slowing U.S. demand for aluminum for the downgrades.

• Keefe Bruyette cut National City Corp (NASDAQ: NCC) to Underperform from Market Perform based on higher credit costs and near-term capital requirements.

• MGM Mirage (NYSE: MGM) was downgraded to Sell from Hold at Matrix USA citing valuation.

• Citigroup cut Domtar Corp (NYSE: UFS) to Sell from Hold with a $9 target based on valuation.

OTHER DOWNGRADES:

• Dow Chemical Co (NYSE: DOW) was removed from Credit Suisse's U.S. Focus List.

• Prudential cut Dean Foods Co (NYSE: DF) to Neutral from Buy based on valuation and volatile short-term raw milk prices.
  

• Barrington downgraded Cintas Corp (NASDAQ: CTAS) to Market Perform from Outperform with a $40 target based on poor Q3 earnings and lower revised guidance.

• Methanex Corp (NASDAQ: MEOH) was cut to Underperform from Market Perform at BMO Capital.

• Buffalo Wild Wings (NASDAQ: BWLD) was downgraded to Hold from Buy with a $67 target at Jefferies based on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Work uniforms and custom corporate apparel maker Cintas (Nasdaq:CTAS) released 3Q FY 2007 revenue and earnings information after the market closed on 20 March 2007. Revenue for the current quarter increased 8.2% to $905.4 million. Diluted earnings per share (EPS) increased 6.7% to $0.48. Net income was essentially flat, $76.7 million for the current quarter versus $76.6 million for 3Q 2006. Cintas CEO Scott Farmer pointed to three major reasons for Cintas' 3Q situation. A mild winter in much of the country meant a lower demand for winter uniform jackets. Continuing loss of manufacturing jobs to overseas markets has a direct impact on the quantity of demand for uniform work apparel. As well, Cintas has been reorganizing its entire sales force for the past several months.

CEO Farmer was guardedly optimistic with 3Q FY2007 results. Cintas is expanding both its product line and its geographic base for customers. Currently Cintas provides work-related apparel and/or promotional products, mats and restroom supplies to more than 700,000 businesses.

Cintas has been actively buying back shares of its common stock. In 3Q 2007, CIntas purchased 1.4 million shares at a total cost of $57 million. To date, Cintas has repurchased over 14 million of its shares, approximately 8% of the total shares outstanding, at a total cost of $580 million. Cintas currently has $420 million remaining to continue to fund its stock buyback program.

CEO Farmer estimates revenue for entire FY 2007 will be $3.675 - $3.725 billion. This range is down from previously forecast revenue projections of $3.77-$3.85 billion. Diluted EPS will be $2.03-$2.08, down from previously forecasted $2.10-$2.20 range. Cintas is on track for its 38th consecutive year of growth in sales and earnings.

The stock closed up 0.47 to $$40.51, but fell to $37.66 in after hours trading.