Stocks in the news: Research in Motion, Sara Lee, KB Home
Research In Motion (RIMM) reported disappointing earnings late Thursday. While revenue jumped 37 percent to $3.53 billion, profit slipped to $475.6 million, or 83 cents a share, from $495.5 million, or 86 cents a share, in the year-ago period. Adjusted earnings were $1.03 per share. Analysts had expected a profit of $1 per share on sales of $3.63 billion. RIM also gave a disappointing outlook for this quarter's sales of $3.6 billion to $3.85 billion. Analysts had expected an revenue forecast of $3.91 billion. RIMM shares tumbled about 14 percent in pre-market trade.
Unilever (UL) put in a $1.88 billion offer for the global body care unit of Sara Lee (SLE), which includes the Sanex and Duschdas brands. The consumer products giantsaid the businesses it will acquire had sales of euro750 million and operating earnings of euro128 million in the 12 months ending in June. SLE shares jumped over 5 percent ahead of the bell.
Nomura Holdings Inc. (NMR) shares fell Friday after it announced its biggest ever equity sale to raise up to 510 billion yen ($5.6 billion) to augment its capital and improve business abroad. The new shares represent roughly 30 percent of its outstanding stock. NMR shares declined over 4 percent before the bell after closing 15.27 percent down Thursday.
KB Home (KBH) reported a deeper quarterly loss than expected of $66 million, or 87 cents per share, and its chief executive warned he does not expect "meaningful improvement" in the U.S. housing market in the near future. Shares dropped over 6 percent ahead of the bell.
Tibco Software (TIBX) announced a better-than-expected 34 percent rise in quarterly profit late Thursday. Shares gained about 6.8 percent in pre-market trading.
Auxilium Pharmaceuticals Inc. (AUXL) is offering 2 million shares.
Terra Industries Inc. (TRA) announced plans for a $750 million special cash dividend. Shares climbed about 2.8 percent before the bell.
Wynn Resorts' (WYNN) $1.6 billion IPO of its Macau unit in Hong Kong is more than 10 times covered, a source familiar with the deal told Reuters on Friday.
Goldman Sachs Group Inc. (GS) -- a Citigroup analyst raised his earnings outlook for the bank, saying he expects to benefit from the new over-the-counter derivatives and commodity trading rules owing to its strong technology position.
Morgan Stanley (MS), however, is outrunning Goldman Sachs as 2009's busiest adviser on mergers.
ConAgra Foods Inc. (CAG) is raising its dividend by 5 percent to 20 cents from 19 cents.
Select analyst calls:
- Biovail (BVF) was started at J.P. Morgan with an Overweight rating and a price target of $19.
- Caterpillar (CAT) was raised at Credit Suisse raised to Outperform from Neutral.
- UBS upgraded several airlines, including AMR Corp. (AMR), UAL Corp. (UAUA) and US Airways (LCC), all from Neutral to Buy.
- Bernstein initiated coverage on McDonald's (MCD), Darden Restaurants (DRI) and Starbucks (SBUX) with Outperform. Burger King (BKC), Yum Brands (YUM) and Wendy's (WEN) with Market Perform.