Stocks in the news: Lions Gate, CIT, VMware, Fluor
Lions Gate Entertainment (LGF) reported Monday its fiscal first-quarter profit rose to $36.3 million, or 30 cents a share, from $3.5 million, or 3 cents a share, in the year-ago period, beating analyst forecast. Revenue jumped 30 percent. Stock jumped nearly 12 percent ahead of the bell.
CIT Group Inc. (CIT), the commercial lender that was bailed out by private investors in recent weeks to avoid bankruptcy, said that it had been unable to file its quarterly report with the SEC by the Aug. 10 deadline without incurring "unreasonable effort and expense." CIT reiterated that it expects to report a net loss of more than $1.5 billion for the quarter. Shares declined over 22 percent at last check.
Fluor Corp. (FLR) reported that second-quarter profit fell 19 percent to $169 million, or 93 cents a share from $208 million, or $1.12, in the year-earlier period, but topped Street estimates. Revenue fell 8 percent to $5.3 billion.
VMware Inc. (VMW) agreed to acquire SpringSource in a deal valued at $420 million. VMare will pay $362 million in cash and equity, and assume $58 million of unvested stock and options from SpringSource, which develops Web applications and management tools for businesses.
Cemex (CX) said it continues to make progress on its plan to refinance bank debt, announcing on Monday that it had secured support from all its creditor banks to back an ambitious plan to refinance about $15 billion of company debt. Shares gained over 2.5 percent in pre-market trade.Fossil Inc. (FOSL) reported on Tuesday that second-quarter net income fell 34 percent on 11 percent lower sales. Expects recession to weigh on outlook.
Qualcomm Inc. (QCOM) said Tuesday that the U.S. District Court for the Southern District of California granted its motion to dismiss a consumer class-action lawsuit alleging antitrust violations and unfair competition.
Target (TGT) -- Pershing Square Capital Management cut its ownership stake in Target to 4.4 percent from 7.8 percent. While Pershing Square said it increased its actual common stock ownership to 3.5 percent from 3.3 percent, it sold some call options.
Sprint Nextel Corp. (S) priced a $1.3 billion offering of 8.375% senior notes due 2017. The company will use the funds for general purposes. Piper Jaffray downgraded S to Underweight from Neutral and cut the price target from $5 to $3.50. The firm also cut 2009 and 2010 estimates. Shares declined over 4 percent ahead of the bell.
Bank of America (BAC) -- A federal judge refused to approve a proposed settlement between the SEC and Bank of America over the payment of bonuses to Merrill Lynch & Co employees, saying in a hearing on Monday he needs more detail to determine if it was fair to the public.