Stocks to Watch (COST, WWW, YUM, DAN, BARE, AAI)

Costco Wholesale Corporation (NASDAQ: COST) reported Net sales for the fiscal 2009 fourth quarter ended August 30, 2009 were $21.89 billion, a drop from $22.63 billion in the same period a year ago. Net income for the fourth quarter of fiscal year 2009 was $374 million, or $.85 per share, compared to $398 million, or $.90 per share, in the same quarter last year. Analysts expected EPS of 77 cents.

Wolverine World Wide, Inc. (NYSE: WWW) said Wednesday that its third-quarter net profit fell 14% as it also raised its earnings forecast for the year. The company said it earned $26.8 million, or 54 cents a share, in the quarter, compared to $31.2 million, or 62 cents a share, a year earlier. Revenue fell 10.1% to $286.8 million, and was down 6.9% excluding a negative impact from exchange rate fluctuations. Analysts polled by FactSet had been expecting earnings of 56 cents a share on sales of $292.2 million. The company said it now expects adjusted earnings for 2009 of $1.65 to $1.75 a share, up from its previous guidance of $1.55 to $1.73 a share.

Yum! Brands, Inc. (NYSE: YUM) surged 2.07% to $35.58 in afterhours trading after it earned $334 million, or 69 cents a share, in the third quarter, up from $282 million, or 58 cents a share, in the same period a year ago. Excluding items the company would have earned 70 cents a share, up from 58 cents. Sales dipped to $2.78 billion from $2.84 billion as same-store sales -- those at outlets open at least a year -- fell 6% in the U.S. and 3% worldwide. The average estimate of analysts polled by FactSet Research had been for Louisville, Ky.-based Yum to earn 58 cents a share on revenue of $2.75 billion. For the full year, the company said it now expects to earn $2.14 a share.

Dana Holding Corporation (NYSE: DAN) climbed 4.17% to $7.00 after it announced that Goldman, Sachs & Co., as representative of the underwriters in Dana’s recent common stock offering that closed on September 29, 2009, exercised the option to purchase 5,083,100 additional shares of Dana common stock. In accordance with the terms of its credit agreement, Dana will use approximately 50 percent of the proceeds to repay debt. The net proceeds to Dana are approximately $32.6 million.

Bare Escentuals, Inc. (NASDAQ: BARE) jumped up 3.81% to $12.27as Piper Jaffray upgrades from Neutral to Overweight. Price target increased from $8 to $14.

AirTran Holdings, Inc. (NYSE: AAI) fell 12.05% to $5.40 as intends to offer, subject to market and other conditions, $75,000,000 aggregate principal amount of Convertible Senior Notes due 2016 in an underwritten registered public offering.