Stocks in the news: Best Buy, Wells Fargo, GE, Goldman Sachs
Best Buy (BBY) reported third-quarter earnings of 53 cents a share, topping analysts' estimates by 10 cents a share. Sales in the quarter climbed 4.6% from a year ago to $12.02 billion, also exceeding estimates. Looking ahead, Best Buy raised earnings and revenue guidance for 2010 ahead of consensus estimates. But shares fell more than 4.5% before the bell as investors were concerned about the lower margin.
General Electric (GE) Chairman and CEO Jeff Immelt will update investors Tuesday at the company's annual meeting. He will aim to persuade them that he can guide GE to a new era of growth despite a cloudy forecast for 2010. Immelt himself says he should have done more to anticipate the crisis, as GE Capital write-downs affected the whole company as GE cut its dividend 68%. Now, Immelt plans to refocus GE around its core industrial businesses, including health care, aircraft engines and energy turbines.
Goldman Sachs Group (GS) is being sued by an institutional investor who claims the firm is preparing to pay out improper bonuses. The lawsuit names CEO Lloyd Blankfein and other executives and board members as defendants.Kraft Foods (KFT) questioned the robust growth targets Cadbury PLC (CBY) issued Monday as it stuck by its 9.8 billion pound ($16.3 billion) hostile takeover of the company on Tuesday. Further, Kraft suggested it has no plans to raise the price of its cash and shares offer, despite a recent surge in Cadbury's share price to above the offer.
Boeing Co. (BA) plans to finally get its new 787 jetliner into the air Tuesday, weather permitting, more than two years after it had intended to get the fuel-efficient jet off the ground. The plane will take off from Paine Field in Everett, Wash., after which the two-member crew will perform a variety of basic tests and systems checks before landing at Seattle's Boeing Field.
Adobe Systems (ADBE) will release quarterly results after the end of trading Tuesday. The software maker is expected to report earnings of 37 cents a share on $752.5 million, according to analysts polled by Thomson Reuters.
Elan Corporation (ELN) and Transition Therapeutics (TTHI) said that in a Phase II study for the potential treatment of Alzheimer's disease, patients will be withdrawn immediately from the study in the two higher-dose groups, due to greater rates of serious adverse events in those groups. The study will continue unchanged for patients who are assigned to the lower-dose and placebo groups. ELN shares fell about 4.8% ahead of the bell, TTHI's sank nearly 16%.
Starlims Technologies Ltd.'s (LIMS) shares surged more than 46% in pre-market trading after the company agreed to be acquired by Abbott Laboratories (ABT) for about $123 million.
Array BioPharma (ARRY) stock climbed nearly 27% on a deal to license its potential type 2 diabetes treatment to Amgen (AMGN), which will pay $60 million up front, plus double-digit royalties and contingent payments for clinical and commercial milestones.
Weyerhaeuser (WY) soared 12% on a plan to convert into a real estate investment trust.