Reporting on KMX’s Q1 results; TM’s Prius Hybrid orders; CEPH’s disappointing leukemia trial results; how Obama’s financial proposal affects HOG and others; and ERTS’ COO appointment.

Today’s Stock Alerts include: CarMax Inc. (NYSE: KMX), Toyota Motor Corp. (NYSE: TM), Cephalon Inc. (Nasdaq: CEPH), Harley Davidson (NYSE: HOG) and Electronic Arts Inc. (Nasdaq: ERTS).

CarMax Inc. (NYSE: KMX) Stock Alert - KMX Q1 Earnings Decline yet Top Estimates

CarMax Inc. (NYSE: KMX), a retailer of used cars, recently announced its financial report for the quarter ended May 31, 2009.

Against the backdrop of weak customer traffic, the company saw its fiscal first-quarter profit falling 2.7% on a double-digit sales drop, a loss in its auto financing arm and reported charges related to loans.

The company reported earnings of $28.7 million, or 13 cents per share, down from $29.6 million, or 13 cents per share, a year ago.

Excluding a 2-cent gain from a litigation settlement and including 11 cents per share for increased funding costs and other adjustments related to CarMax Auto Finance, the company said it earned 11 cents per share, topping analyst consensus of 4 cents, according to First Call. The analyst estimates typically exclude one-time items.

Revenues declined 17% year-over-year to $1.83 billion, but still topped the $1.72 billion analysts were looking for.

In the year ago quarter, CarMax said its used vehicle gross profit per unit increased to $2,001 from $1,742. However, the company attributed most of this improvement to below-average profitability in the year ago quarter.

“While our customer traffic trend continued to be weak, we did see improvement in the first quarter compared with the fourth quarter of fiscal 2009,” said president and CEO Tom Folliard, president and chief executive officer. “In this difficult environment, superior in-store execution becomes even more critical.”

Folliard said while it’s difficult for him to call a decline in sales an improvement, he said it was “certainly a sequential step in the right direction” compared to the fourth quarter of 2009, when the company saw a 26% drop in same-store sales. An increase in traffic and better sales execution contributed to the results, Folliard said.

Richmond-based CarMax retailed 345,465 used vehicles during the fiscal year ended February 28, 2009 (fiscal 2009). As of February 28, 2009, it operated 100 used car superstores in 46 metropolitan markets. In addition, it sold 194,081 wholesale vehicles, during fiscal 2009, through on-site auctions.

The company purchases, reconditions and sells used vehicles. Approximately 85% of the used vehicles it retails are one to six years old with fewer than 60,000 miles. It also offers a selection of used vehicles at each superstore that are more than six years old or have more than 60,000 miles, if they meet similar quality standards.

In today’s daily chart, KMX’s MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. Trading near its upper Bollinger Band, the stock reflects high price relative to its recent price action.

Toyota Motor Corp. (NYSE: TM) Stock Alert - TM Reports 180,000 Orders for New Prius Hybrid in just a Month

Far surpassing its target of 10,000 vehicles in monthly sales, Toyota Motor Corp. (NYSE: TM), the world’s largest automaker, said it got 180,000 orders for the new Prius hybrid in Japan in just a month. Toyota rolled out the third-generation Prius a month ago.

According to the report, the new Prius hybrid has been a big hit in Japan partly because of tax-breaks and other new government incentives aimed at boosting the economy.

With the strong competition in the Japanese hybrid vehicle market has intensified, Toyota is offering its new Prius at just over 2 million yen ($20,900), about 300,000 yen ($3,100) cheaper than the previous model. New Prius Hybrid has a larger 1.8-liter engine, but it boasts of a better mileage than the older one.

According to Toyota spokesman Paul Nolasco, the new Prius is just starting to arrive in the U.S., where sales for last month totaled just 700. Dealers are still selling mostly the second-generation Prius, making for total Prius sales of 10,091 for May, he said.

Toyota Motor primarily conducts automobile, financial and other businesses. Its business segments are automotive operations, financial services operations and all other operations.

Its automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. Toyota’s financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. Its financial services also provide retail leasing through the purchase of lease contracts originated by Toyota dealers. Related to Toyota’s automotive operations is its development of intelligent transport systems (ITS). Toyota’s all other operations business segment includes the design and manufacture of prefabricated housing and information technology related businesses, including an e-commerce marketplace called Gazoo.com.

In today’s daily chart, TM’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

Cephalon Inc. (Nasdaq: CEPH) Stock Alert - CEPH Experimental Cancer Drug Disappoints

International biopharmaceutical company Cephalon Inc. (Nasdaq: CEPH) announced its leukemia drug missed its goal in a trial study. In its report, Cephalon said its drug candidate lestaurtinib did not improve survival for leukemia patients compared with standard chemotherapy.

The experimental drug lestaurtinib (CEP-701) is intended to cause cell death and stop abnormal blood cells and platelets from growing and spreading in bone marrow and the rest of the body.

In a press release, executive VP and chief medical officer Dr. Lesley Russell stated, “We are disappointed that this study with lestaurtinib did not demonstrate a benefit for this patient population but we remain committed to oncology clinical research and developing innovative therapies for life-threatening diseases.”

Cephalon officials said results from the trial will be submitted for presentation at a future medical meeting. The company said the outcome of study has no impact on the company’s previously issued financial guidance for 2009.

Cephalon engages in the discovery, development and commercialization of products in three therapeutic areas: central nervous system (CNS), pain and oncology. In addition to conducting an active research and development program, the company markets seven products in the United States and numerous products in countries throughout Europe and the world.

Its principal product is PROVIGIL (modafinil) Tablets [C-IV], which consisted 51% of its total consolidated net sales, during the year ended December 31, 2008, of which 94% was in the United States market. PROVIGIL is indicated for the treatment of excessive sleepiness associated with narcolepsy, obstructive sleep apnea/hypopnea syndrome (OSA/HS) and shift work sleep disorder (SWSD). Its other principal products are FENTORA (fentanyl buccal tablet) [C-II] and ACTIQ (oral transmucosal fentanyl citrate) [C-II] (including its generic version of ACTIQ (generic OTFC)).

In today’s daily chart, CEPH’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.

Harley Davidson (NYSE: HOG) Stock Alert - HOG, Cos. Operating ILC’s could be negatively Impacted from Obama’s New Rules, Report Says

Harley-Davidson (NYSE: HOG), as well Target Corp. (NYSE: TGT), Pitney Bowes (NYSE: PBI) and other companies with industrial loan company (ILC) charters, may be hurt by a new financial proposal from White House, a report said.

The Wall Street Journal reported that the Obama administration’s proposed financial regulatory revamp includes a provision that would mean greater oversight of industrial loan companies, and could lead to some of them being shut down by the non-financial companies that operate them.

ILCs are allowed under their state-issued charters to collect federally insured deposits, offer credit cards, make loans and process financial transactions without facing as much scrutiny as traditional banks regulated by the U.S. government.

The report said Obama wants companies with ILC charters to register as bank-holding companies with the Federal Reserve, putting them in the same regulatory category as Bank of America Corp. (NYSE: BAC) and J.P. Morgan Chase (NYSE: JPM).

The Wall Street Journal, citing industry experts, said most companies with ILC charters would likely close them if the change occurs, with the possibility that they might not be able to satisfy the Fed’s capital and other requirements, and thus would be ineligible to become bank-holding companies.

Motorcycle maker Harley-Davidson operates a Financial Services segment that includes a group of companies doing business as Harley-Davidson Financial Services (HDFS). HDFS provides wholesale and retail financing and, as an agent, provides insurance and insurance-related programs primarily to Harley-Davidson and Buell dealers and their retail customers.

Harley-Davidson’s Motorcycles segment includes the group of companies doing business as Harley-Davidson Motor Co. (HDMC), Buell Motorcycle Co. (Buell) and MV Agusta (MV). The Motorcycles segment designs, manufactures and sells at wholesale primarily heavyweight (engine displacement of 651+cubic centimeters) touring, custom and performance motorcycles, as well as a line of motorcycle parts, accessories, general merchandise and related services.

In today’s daily chart, HOG’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

Electronic Arts Inc. (Nasdaq: ERTS) Stock Alert - Company and Xbox Veteran Schappert Returns Back to ERTS as COO

Electronic Arts Inc. (EA) (Nasdaq: ERTS), a leading global interactive entertainment software company, recently appointed John Schappert as COO, effective July 14, replacing outgoing John Pleasants.

Schappert joined the industry in 1991 as a software engineer on several EA titles and went on to lead many of the company’s biggest franchises. Two years ago, he left EA to become corporate VP of the Microsoft Interactive Entertainment Business with responsibility for Microsoft Game Studios and Xbox LIVE®.

“We are thrilled to welcome John Schappert back to EA,” said EA CEO John Riccitiello. “He has a great track record as a leader and innovator in our industry. His years of experience with EA and in Microsoft’s Xbox business, provide him great insight into recognizing what consumers want.”

As EA’s COO, Schappert will be responsible for Worldwide Publishing, the Online Platform Group, EA™ Interactive, Central Development Services and other divisions of the company.

In a release, Schappert made the following statement, “After nearly two decades working in or around this company, I’ve got EA in my blood. This is a team that is intensely focused on quality and innovation. I’m looking forward to rejoining EA as chief operating officer and helping grow the business on new platforms and in new markets.”

EA develops, markets, publishes and distributes video game software and content that can be played by consumers on a variety of platforms, including video game consoles, such as the PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii; personal computers (PCs), including the Macintosh; handheld game players, such as the PlayStation Portable (PSP) and Nintendo DS, and wireless devices, such as cellular phones and smart phones, including the Apple iPhone.

The company’s products for videogame consoles, PCs and handhelds are delivered on physical media (disks and cartridges) that are sold at retail stores and through mail-order (packaged goods products). Some electronically delivered content and services are add-ons or are related to its packaged goods products (add-on content or matchmaking services); while other games, content and services that it offers, such as games for wireless devices, and Internet-only games, are available only through electronic delivery.

In today’s daily chart, ERTS is trading within its Bollinger BandS, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

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