Stocks in the news: Wal-Mart, MBIA, Sony, Whole Foods
Wal-Mart Stores Inc. (WMT) reported a flat first-quarter profit on Thursday as revenue from its huge international operations was hurt by the stronger dollar. Results were inline with estimates, although revenue fell short of projections.
MBIA (MBI) is being sued by 19 banks over its business split. The lawsuit alleges that the company acted illegally when it split the business in two and that the move hurt policyholders as the insurance unit is now effectively insolvent. Shares were down over 9 percent in pre-market trading.
Sony (SNE) forecast a second straight full-year loss as the global recession forces the company to cut prices of its Cyber-shot cameras and Bravia televisions. The net loss forecast is in line with analysts' estimates. Shares declined 2.9 percent before the bell.
Kohl's Corp. (KSS) said first-quarter net income fell 10 percent, while comparable store sales for the quarter dropped 4.2 percent. Results beat analysts expectations for earnings of 44 cents a share by a penny.
Urban Outfitters Inc. (URBN) reported a 28 percent decline in net income to $30.8 million, or 18 cents. Sales were down 2 percent from the previous year period. Results beat estimates by a penny. Shares traded 2.8 percent lower ahead of the opening bell.
BT Group (BT) cut its dividend and announced 15,000 further job losses on Thursday as it reported a loss of $1.5 billion after its pension costs almost doubled and it wrote down $2.4 billion. Shares were 2.4 percent lower in pre-market trade.
Starbucks (SBUX) credit rating was cut by Moody's from Baa2 to Baa3. Apparntely, Moody's concerned about how the restructuring would affect the Starbucks brand. Of course, continued weakness in consumer spending and more competition also played a role in the downgrade.
Whole Foods Market (WFMI) reported Wednesday that its fiscal second-quarter net income fell 32 percent, but it beat estimates by a penny. Sales were flat at $1.9 billion, but traffic slowed and same-store sales were down 4.8 precent.
Ford Motor Co. (F) said Thursday underwriters for its recent 300 million share common stock offering exercised their overallotment option in full, and will purchase an additional 45 million shares. This means gross proceeds from the offering will be about $1.6 billion. Shares climbed 2.4 percent before the bell.