The earnings crunch rolls on, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Activision Inc. (NASDAQ: ATVI) earnings soared on popularity of Guitar Hero and other game franchises.
• Arch Coal Inc. (NYSE: ACI) beat earnings expectations and offered revised guidance.
• Avon Products Inc. (NYSE: AVP) beat estimates despite lower profits due to restructuring costs.
• Chattem Inc. (NASDAQ: CHTT) beat estimates and raised its guidance.
• Cisco Systems Inc. (NASDAQ: CSCO) met estimates but a weak forecast raised concerns.
• Dionex Corp. (NASDAQ: DNEX) beat estimates on strength in petrochemical and food/beverage markets.
• Electronic Data Systems Corp. (NYSE: EDS) earnings fell, helping to raise concerns about tech stocks.
• Flextronics International Ltd. (NASDAQ: FLEX) beat estimates and affirmed its outlook.
• Gannett Inc. (NYSE: GCI) missed fourth-quarter earnings estimates on lower ad revenue.
• Las Vegas Sands Corp. (NYSE: LVS) missed expectations due to rising construction costs.
• MGM Mirage (NYSE: MGM) forecast it would beat earnings expectations by as much as 10 cents a share.
• Old Dominion Freight Line Inc. (NASDAQ: ODFL) beat revenue estimates and raised its guidance.
• RealNetworks Inc. (NASDAQ: RNWK) warned it would miss first-quarter and full-year expectations.
• Silicon Laboratories (NASDAQ: SLAB) beat expectations and raised its guidance.
• THQ Inc. (NASDAQ: THQI) posted disappointing results that included cancelled game franchises.
• Time Warner Inc. (NYSE: TWX) met estimates and announced restructuring plans (see transcript).
• Unilever (NYSE: UL) fourth-quarter net income tanked on a sell-off of its European frozen food business.
• Walt Disney Co. (NYSE: DIS) posted better-than-expected results on gains in TV and theme parks.

For additional earnings highlights from this past week, see Earnings highlights: PepsiCo, Toyota, News Corp., ADM, Toll Bros. and others.

Also, Doug McIntyre suspects analysts are expecting too much from earnings in the later half of the year. And Zac Bissonette is skeptical about claims of "record earnings."

Upcoming results to watch for include General Motors Corp. (NYSE: GM), Applied Materials Inc. (NASDAQ: AMAT), Coca-Cola Co. (NYSE: KO), Deere & Co. (NYSE: DE), and Comcast Corp. (NASDAQ: CMCSA).

Visit AOL Money & Finance for more earnings coverage.

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MOST NOTEWORTHY

• Baird is positive on Old Dominion's (NASDAQ: ODFL) growth opportunities, valuation, 2008 improving truck fundamentals, and a potentially seasonally stronger Q4, starting shares with an Overweight rating and $36 target.

• Merriman initiated Jamba (NASDAQ: JMBA) with a Buy rating, as the company aggressively expands its store base beyond California.

• BMO Capital believes AMD (NYSE: AMD) may lose the Intel platform integrated graphics market, and sizeable Intel platform discrete graphics market share. The firm initiated AMD shares with an Underperform rating and $10 target.

• Soleil has concerns regarding Orbitz Worldwide's (NYSE: OWW) decelerating growth and poorer business mix vs. competitors and started shares with a Hold rating and $13 target.

• Credit Suisse initiated Quest Diagnostics (NYSE: DGX) with a Neutral rating and $61 target, citing the recent UnitedHealth (UNH) contract loss, slowing growth, and valuation for its Neutral rating...

• McDermott (NYSE: MDR) and Capella Education (NASDAQ: CPLA) were initiated with Buy ratings at Citigroup.

• JMP Securities started ShoreTel (NASDAQ: SHOR) with a Market Outperform rating.

• Credit Suisse initiated LabCorp (NYSE: LH) with an Outperform rating.

• FTN Midwest started Northwest Airlines (NYSE: NWA) with a Buy rating.

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MOST NOTEWORTHY:

• HSBC upgraded AU Optronics (NYSE: AUO) to Overweight from Neutral following the company's Q2 results.

• Jefferies raised RightNow Technology (NASDAQ: RNOW) to Buy from Hold, believing low expectations have created a buying opportunity and that fundamentals remain intact.

• JP Morgan upgraded shares of Alaska Air (NYSE: ALK) to Overweight from Netural on valuation.

• Citigroup upgraded Nordstrom (NYSE: JWN) to Buy from Hold on valuation; they consider the recent pullback a buying opportunity.

• Citigroup upgraded Gap (NYSE: GPS) to Buy from Hold from valuation and expects for better execution and cost savings in 2008 under the new CEO.

• Credit Suise upgraded Old Dominion Freight Line (NASDAQ: ODFL) to Outperform from Neutral on valuation...

• Merriman upgraded MicroTune (NASDAQ: TUNE) to Buy from Neutral.

• Citirgroup raised Aeropostale (NYSE: ARO) to Hold from Sell.

• Merrill upgraded Cathay General (NASDAQ: CATY) to Neutral from Sell.

• The NYSE Euronext (NYSE: NYX) was upgraded to Neutral from Sell.

• Wachovia raised shares of Wendy's (NYSE: WEN) to Market Perform from Underperform.

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Most of the major long-haul trucking companies have reported quarterly earnings by now, and the news has been about as welcome as a state trooper with a ticket quota to meet. All trucking companies were affected by the same negative factors for the winter quarter:

1. Slowing economy, with particular weakness in the housing and auto sales sectors, resulting in weakening demand for the past eight months.

2. Excess capacity, though not necessarily excess drivers, as many companies bought new truck engines prior to the deadline for more fuel efficient (and expensive) and less polluting engines.

3. Soaring fuel costs, up 17 cents per gallon in March alone, with no end in sight for the next several quarters.

4. Wretched weather for days on end in many parts of the country.

Despite what might initially appear to be a uniformly negative scenario, the long-haul trucking sector is more fragmented than investors may realize, so results were NOT NEGATIVE across the board. In many cases, revenues were up, but then again, so were operating expenses. The degree to which senior management can control costs and utilize existing equipment effectively often made the difference.

The winner clearly is Heartland Express Inc. (NASDAQ: HTLD) which returned positive numbers across its business units. Operating revenue was up 6.2% to $143.3 million from 1Q 2006. Net income was up 14.3% to $22.6 million. Diluted EPS was up 15% to $0.23. Cash flow improved by $33.8 million. The company remains debt free with $700 million in assets. Despite the very difficult business environment, Heartland Express purchases 35 new tractors and 100 new trailers during 1Q 2007. In keeping with its 15 consecutive quarters of paying a dividend, Heartland paid out a dividend of $0.2 per share. Heartland just seems to be better at logistics and operations than its competitors, most of whom lost money in one of more business business units. Heartland Express stock closed recently at $16.53, down $0.37.

Werner Enterprises (NASDAQ: WERN) also reported revenue increases, albeit smaller, just 2% to $492 million. Although Werner is not a primary shipper in the construction and/or auto sectors, it faced considerable pressure from those trucking companies that are, as they faced weakening demand and looked elsewhere for business. EPS declined by 24% to $0.21, which more than offset the good news of the slight revenue increase. Werner is somewhat protected from the weakening demand due to its ability to contract out its trucks and drivers on short-term contracts to help customers meet surge and flex demands. Werner has also branched out into value added logistics services, as well as international shipping. Revenue in this unit was up 24%. Revenue in Werner's brokerage unit was up 32% to $800,000 and the company hopes to grow this unit substantially. Werner is a major creditor of now bankrupt APX Logistics, which owes Werner over $7 million. Werner carries $80 million in debt, but nonetheless purchases 1.5 million shares of its stock at an average price of $19.68. Werner stock closed recently at $19.11, down $0.15.

Con-way Inc. (NYSE: CNW) was a triple downer. Operating income for 1Q 2007 was down 28.5% to $55.7 million. Revenue was down 4% to $1 billion. Net income was down by $13 million to $32 million. Diluted EPS was down over 20% to $0.60. In both truckload division and less-than-truckload division, revenues, operating income and tonnage hauled were down. Operating income decreased by 19.4%. Revenue was down 2% to $682 million. Tonnage decreased by over 2%. There is a bit of a bright spot. Con-way's logistics unit, Menlo Logistics reported an operating income increase of 5.7% to $6.5 million, and net revenue increased by 10% to $104 million, despite the fact that revenue decreased by 8.4%. Optimistically, Con-way is sticking with its previous FY 2007 guidance of diluted EPS in the range of $3.60-$3.90. Con-way bought back over 900,000 of its own shares at a cost of $45 million. The stock closed recently at $54.38, down $0.68. There are certainly less expensive money-losing trucking stocks in which to invest.

Arkansas Best Corporation (NASDAQ: ABFS) reported slight declines in 1Q 2007 revenue, to $422.6 million. But reported a 6% decline in tonnage hauled, 21.6% drop in net income, to $4.8 million, with a corresponding drop in diluted EPS from $0.24 to $0.19. ABFS paid at over $1 million, $0.03 per share, in executive pension benefits. Nice to know that even when money is tight, the rich guys still get paid first. To try to help itself, ABFS has rolled out a Regional Performance Model that tried to provide second-day services to the eastern 2/3 of the US. The company wants to compete over shorter distances by improving its delivery time consistency and pricing. This new business model just recently became fully operational, so revenues from it have yet to match let alone exceed expenses. If successful, it may give ABFS an edge over its shorter-haul competitors. The stock closed recently at $39.60, down $0.51.

J.B.Hunt Transport Services, Inc. (NASDAQ: JBHT) reported a 2% increase in overall revenue to $797 million. Operating income declined 1% to $80 million. The company took on $7 million more in debt, perhaps not the wisest move in a constricting market. 1Q 2007 EPS remained flat at $0.30. But JB Hunt is a fairly segmented trucking business, and some business units recorded gains. Intermodal services had a very positive quarter with revenue up 9% to $354 million, and operating income up 30% to $46.6 million with a major emphasis on shorter-haul customers along the east coast. The Dedicated Contract Services unit also showed some positive action as revenue was up 6% but operating income was down 4%. Whatever small gains were posted were wiped up by declines in the Trucking sector where revenue was down 11% to $214 million due to weakened demand, and operating income plummeted 47% to $11.4 million. The stock closed down $0.60 at $28.37.

Old Dominion Freight Line (NASDAQ: ODFL) reported 9.7% increase in revenue to $320 million, but less than 1% increase in operating income at $13.6 million . EPS was $0.36 compared with $0.35 in 1Q 2006. Old Dominion recently completed the acquisition of Priority Freight Lines, Inc in order to expand its geographic reach, the opposite of the two trucking companies with more positive results. Old Dominion maintains FY 2007 guidance of $2.00-$2.05 per share. The stock closed down $0.88 at $30.56.

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A brief look at railroad freight traffic numbers offers some tell-tale signs as to where our economy is heading. I like to review railroad loading statistics because they can give you a crystal-ball edge in guessing where the big money is leaning in the volatile economic food chain. Basically, right now the numbers are firm year over year, but the freight demographics are what I find interesting.

According to the Association of American Railroads: Total rail freight volume is up 8.9% as compared to 2006, but while container volume is up about 14%, trailer volume is down 6.2%. That indicates that for the year so far, the railroads are probably moving more imported product than domestic product.

While total carload freight (not including inter-modal) was down nearly 1% this week as compared to the same week last year, total ton-miles increased 0.3%, indicating that less freight is moving but it is traveling more miles. That is clearly due to the decreasing inventories of manufactured product, which should bode well for manufacturers in the second and third quarters. That's assuming that consumer spending maintains current levels.

Nonmetallic mineral shipments have increased nearly 20% by volume over last year. This shows strength in base chemicals, base raw materials, glass, concrete, asphalt, industrial construction, and infrastructural improvements. Metallic ore shipments are down over 50%; I believe that shows weakness most especially in steel, tin, aluminum, and copper. Lumber and wood product shipments declined nearly 25% -- no reprieve for the home building market there! Petroleum product shipments are up 9.2% year over year, and coal shipments have increased 3.1%. Here's a tip, it looks like road building and resurfacing will be a big gainer this summer!

Canadian rail shipments are down slightly year to year, showing declines of 4.3% for shipment originations and a 0.2% decrease in containers and trailers. Mexican rail traffic on the Mexican railroad Kansas City Southern de Mexico (KCSM) is mixed, with rail cars down 7.6% but trailers and containers up 7.6%.

The American Association of Railroads states: "Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail inter-modal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator."

One additional note: We wish to express our gratitude to and admiration for the American railroad industry for being recognized as having the safest year ever in their history. Railroads had 402 fewer train accidents in 2006 than 2005, down 12.4 percent. American railroads are to be respected and revered as a shining example of the way business in America should be done.

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I've been reading the January 2007 issue of Material Handling Management. In this issue, there is a fine article by Tom Andel that discusses the current realities regarding hydrogen fuel cell use in commercial operations utilizing lift truck fleets. The MHM article brings home some truths of just how close we are to finally beginning the replacement of currently accepted methods of providing the energy to operate various industrial equipment. Consumers (and investors), sometimes don't realize that when it comes to heavy duty technology conversions in our day to day world, most often those changes are implemented and perfected on the industrial side well before the consumer side gets its hands on them. Such seems to be the case in the matter of hydrogen fuel cells.

MHM research suggests that while increasing improvements are still being aggressively sought, hydrogen fuel cell technology has reached the point of being completely practical in replacing some of today's current energy provision systems. The single largest hurdle that developers are addressing is in making the technology more economical. With current incentive programs for energy provision change over, it's almost a dead heat between hydrogen fuel cells and current methods in use. Developers have already begun their marketing programs while the scientists and engineers continue to push towards their goals for economical hydrogen deployment absent of outside financial incentives. Their goal is to make hydrogen fuel cell technology a stand alone proposition.

Lift truck manufacturers are operating in concert with fuel cell and battery manufacturers to find winning options in energy provision systems. There are design teams which are focusing on complete battery displacement systems and there are other developers who are seeking a hybrid solution which blends fuel cell utilization with current battery technology. Already, Toyota Motor Corp. (NYSE:TM) has developed a fuel cell lift truck model FCHV-F, which utilizes a "drop in" hydrogen fuel cell module. From all appearances, the module would seem to be shaping up as a total battery replacement.

Engineers are still tackling issues surrounding the control of current flow and the power increases needed for constant heavy lifting. The power delivered by hydrogen fuel cell units seems more suited to continuous loads at lower levels, whereas batteries can quickly deliver heavy power surges with total user control. Based on what I've seen and read it appears to me that fuel cells for now will require an associate battery to assist in delivering the power range and control that lift trucks require. The battery would deliver the current and the fuel cell would work as an on board recharging system. Lift truck fleets would then be freed from the downtimes and dangers of routine daily battery change out.

In an investment sense I would consider hydrogen fuel cells as an excellent long term strategy play. The technology is far enough along for me to believe that it will be fully successful. There are some big players in the game and there is a very hard push forward. Hydrogen fuel cells are real, my friends, and their use should become commonplace in the not so distant future. I see fuel cells as having a significant future in the industrial workplace. The question still remains, will hydrogen fuel cells become practical technology for the automobile? My answer is: I just don't know.

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Personal spending grew at 0.7% in December while personal saving grew at 0.5%. For all of 2006; the savings rate was a negative 1%; meaning, people spent more money than they made. (I usually like to take the government's saving numbers with a grain of salt because of how they are calculated.) In reaction to this economic news the markets drifted mildly higher today.

Old Dominion Freight Line (NASDAQ:ODFL) shot up $4.47 (16%) to $32.25 after reporting earnings of 48 cents per share, beating last year's 39 cents. ON Semiconductor Corp. (NASDAQ:ONNN) jumped $1.36 (16%) to $9.72 on earnings of 27 cents per share, trashing analysts' 17 cent estimates. One of the day's expected big stories Google Inc. (NASDAQ:GOOG) didn't do much, as it drifted down $19.75 (4%) to close at 481.75.

The NYSE had volume of 2.7 billion shares traded with 2,428 issues advancing, while 881 declined for a gain of 72.96 points to close at 9,327.69. On the NASDAQ, 2.1 billion shares were traded, 1,958 stocks advanced and 1,084 declined for a rise of 4.45 points closing at 2,468.38.

Today's list of most-active stocks included DELL Inc. (NASDAQ:DELL), down 0.42 to close at 23.80 after Michael Dell announced he would return as CEO. EMC Corp (NYSE:EMC) was down 0.23 to 13.76. Comcast (NASDAQ:CMCSA) fell 1.43 to 42.92 after reporting earnings of 21 cents below 24 cent expectations.

Options on Clear Channel Communications (NYSE:CCU) were active on the April 35 put (CCUPG) over 32,000 contracts traded. Lear Corporation (NYSE: LEA) had active 35 March puts (LEAQG) trading 32,300 contracts. Intel Corp. (NASDAQ: INTC) January 27.50 calls (WNLAY) were active with 29,900 contacts exchanged. Today's put/call option volume ratio was 0.84 with 3.3 million puts and 4.0 million calls traded.

Friday morning analysts will be looking at the government's January Jobs report. Consumer sentiment and factory orders numbers will also be out at 10 AM EST. More earnings reports are also due including Amazon.com Inc. (NASDAQ:AMZN), and LM Ericsson Telephone (NASDAQ:ERIC).

Kevin Kersten is an analyst with InvestorsObserver. DISCLOSURE NOTE: Mr. Kersten owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

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MOST NOTEWORTHY:

• Merrill Lynch upgraded Dell Inc (NASDAQ: DELL) to Buy from Neutral as they see Michael Dell's return to CEO signaling a new level of commitment by the Board for a serious change and sentiment is unlikely to get worse. JP Morgan upgraded Dell to Neutral from Underweight as they see limited downside risk with Michael Dell at the helm.

• Merrill Lynch also upgraded United Parcel Service (NASDAQ: UPS) to Neutral from Sell, citing valuation.

• Prudential upgraded Eli Lilly & Co (NYSE: LLY) to Overweight from Neural citing valuation and expectations for 10% earnings growth over the next four years.

• Lehman Brothers upgraded Siemens AG ADS (NYSE: SI) to Overweight from Underweight.

• Old Dominion Freight Line Inc (NASDAQ: ODFL) was upgraded to Overweight from Equal Weight at Stephens. The firm expects earnings momentum to accelerate in the second-half of 2007.

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