Momentum Stocks for February 26th: CPS, JAKK, ARCC

Cooper-Standard Holdings (NASDAQ:CPS), the parent company of automotive systems and components supplier Cooper Standard Automotive, is considering buying TI Automotive, Reuters reported citing unnamed people with knowledge of the matter.

Cooper-Standard is evaluating a takeover bid for TI Automotive, which is estimated to have an enterprise value of more than $2 billion, Reuters said. The two companies both have annual sales of about $3 billion.

JAKKS Pacific, Inc (NASDAQ:JAKK) is higher in pre-market trading after the company reported financial results for Q4 topped analysts’ expectations, and said it expects Q1 to be below Street forecasts and issued mixed FY14 guidance.

Shares are up 15.08% at $6.79, with a 52-week range of $4.45 – $12.32.

The multi-line, multi-brand toy company reported Q4 a loss of $0.73 per share, which includes $0.23 per share in restructuring charges, compared with the prior-year period’s $5.45 per share, which also includes $4.18 per share charge related to the impairment of deferred tax assets. Excluding the charge, Q4 adjusted loss per share would be $0.50. This compares with the Capital IQ consensus estimate of $0.82 loss per share.

Revenue was $137.7 million, up from $133.5 million in the same quarter last year. Analysts were expecting $128.72 million.

The company expects Q1 loss per share of $0.77 – $0.81, wider than the consensus of $0.74 loss per share. Revenues are expected to be $72 million – $75 million, below the Street view of $79.95 million.   For fiscal 2014, the company sees EPS of 0.30- $0.40, better than the consensus of $0.24 EPS; revenues are projected to be $633 million – $640 million, below the Street estimate of $642.82 million.

Shares of Ares Capital (NASDAQ:ARCC) edged up Wednesday, after the specialty-finance company reported Q4 adjusted earnings in line with analysts’ expectations as net investment income climbed.

The company posted Q4 net income of $133.9 million, or $0.47 per share, compared with $175.1 million, or $0.71 per share, a year earlier. Excluding one-time items, it earned $0.41 per share in the latest quarter, down from $0.45 per share a year earlier but matching analysts’ mean estimate according to Capital IQ.

Net investment income climbed 18% to $111.5 million, or $0.39 per share.

Total assets were $8.14 billion as of Dec. 31, 2013, up 27% from a year earlier.   ARCC was up 0.8% at $18.38 in recent trading shortly after the open. It has a 52-week range of $16.15 to $18.67.