Redback Networks Inc. (NDAQ:RBAK) announced a definitive agreement to be acquired by Ericsson (NDAQ:ERIC) for $2.1 billion ($25/share).

Hydril (NDAQ:HYDL) expects its fourth quarter 2006 earnings to be around $1.05 per diluted share (above previous expectations) primarily due to improved premium connection segment results. The current consensus stands at $0.87.

Darden Restaurants (NYSE:DRI) reports Q2 EPS of $0.41, one cent better than estimates.  Revenues were $1.39 billion versus $1.4 billion consensus.  Olive Garden's second quarter sales of $662.1 million were 7.1% above the previous year. The company expects total sales growth of between five and six percents in fiscal 2007.

Harrah's Entertainment, Inc. (NYSE:HET) has entered into a definitive agreement for affiliates of Texas Pacific Group (TPG) and Apollo Management, L.P. to acquire Harrah's in an all-cash transaction valued at approximately $27.8 billion, including the assumption of approximately $10.7 billion of debt.  Under the terms of the agreement, Harrah's stockholders will receive $90.00 in cash for each outstanding Harrah's share.

Christopher & Banks (NYSE:CBK) reported Q3 EPS of $0.24, in-line with estimates. Revenues were $139.3 million verus $142.13 million consensus. For the fourth quarter, earnings are anticipated to be in the range of $0.13 to $0.14 per diluted share. The current Q4 EPS consensus stands at $0.18.  

Palm, Inc. (Nasdaq:PALM) reports Q2 EPS of $0.12 versus the consensus of $0.15. Revenues came in at $392.9 million versus the consensus of $392.3 million. They predict Q3 revenues to be around $400 to $410 million versus the consensus of $416.6 million.

PSS World Medical, Inc. (NASDAQ:PSSI) has revised its fiscal year 2007 financial guidance due to lower sales of influenza vaccine compared with previous expectations. The company revised its fiscal year 2007 earnings per share goal to $0.69 to $0.71 per diluted share. The company reiterated its goal of achieving $58 to 60 million of cash flow from operations for fiscal year 2007.The current FY07 EPS consensus stands at $0.78.

Endeavor Acquisition Corp. (AMEX:EDA) is higher this morning after announced a definitive merger agreement to acquire American Apparel Inc., a leading domestic vertically-integrated manufacturer and retailer of cotton fashion basics and the largest T-shirt manufacturer in the United States.  Endeavor will also assume up to $110 million of net debt outstanding, create a one-time merger bonus pool of $2.5 million, and reserve up to approximately 2.7 million shares of additional Endeavor stock under a plan to be made available for issuance to American Apparel employees.

Alliance Imaging, Inc. (NYSE:AIQ) announced its financial guidance for 2007.  Full year 2006 revenue is expected to range from $452.5 million to $455.5 million.  The current FY06 EPS consensus is $456.20 million. For FY07, the company expects revenue to range from $431 million to $443 million versus consensus of $460.34 million.

Circuit City Stores, Inc. (NYSE:CC) reported a Q3 loss of $0.09 versus the consensus for a profit of $0.07. Revenues were $3.1 billion versus a $3.12 billion consensus. The company foresees the net sales growth between 8% to 9%, down from 9% to 11%.  

Scholastic Corporation (NASDAQ:SCHL) reported Q2 EPS of $1.75, four cents better than estimates. Revenues were $735.5 million versus a $702.97 million consensus.  Scholasticed continues to expect fiscal 2007 revenue of $2.1 to $2.2 billion, earnings per diluted share of $1.55 to $1.85. The current FY07 revenue consensus is $2.15 billion and EPS is $1.69.