Stocks in the news: Time Warner, Kraft, Walt Disney, Ambac
Kraft (KFT) reported disappointing results late Tuesday. This will make its task of winning over Cadbury (CBY) shareholders that much tougher as analysts cut estimates of what it could afford to pay for Cadbury. KFT shares declined 1.6 percent in premarket trade.The Walt Disney Co. (DIS) won government approval to build a theme park in Shanghai, giving it access to consumers in mainland China's richest city. The breakthrough deal marks a major advance for Western media and entertainment firms trying to crack a tough China market. Shares climbed 1.7 percent before the bell.
MBIA Inc. (MBI) shares jumped nearly 11 percent in premarket trading.
Molson Coors (TAP) says its third-quarter profit rose 37 percent to $235.3 million, or $1.26 a share, although revenue fell as consumers bought less beer but paid higher prices for it. Net sales fell 7.3 percent to $853.7 million. Excluding items, the company earned $1.14 a share, beating estimates of 98 cents a share on revenue of $837 million. Shares gained over 3 percent in premarket trade.
Cisco Systems (CSCO) will report results after the close. Shares rose about 1.5 percent ahead of the results.
Comcast Corp. (CMCSA) said Wednesday its third-quarter net income rose 22 percent to $944 million, or 33 cents a share. Dividend payments rose by a penny to 7 cents a share. The company beat expectations, as it sold more phone and Internet subscriptions. Shares rose 2 percent in premarket.
Ambac Financial (ABK) said on Wednesday that it swung to a profit of $2.19 billion, or $7.58 a share, from a loss of $2.43 billion, or $8.45 a share, a year ago. Total revenue rose to a positive $2.69 billion, from a negative $2.32 billion last year. Shares jumped 26 percent ahead of the bell.
Shares of some retailers have climbed a bit too high as investors hope for a consumer spending turnaround, a Lazard Capital Markets analyst said in a client note. The analyst cut the ratings of American Eagle Outfitters Inc. (AEO), Jones Apparel Group Inc. (JNY), Callaway Golf Co. (ELY) and True Religion Apparel Inc. (TRLG) among others to Hold from Buy. Saks Inc. (SKS) was downgrade to Sell from Hold. TRLG shares slumped over 13 percent; SKS dropped over 4 percent.
Garmin Ltd. (GRMN) said third-quarter profit rose 26 as improved margins more than offset a moderate decline in revenue. Results handily beat estimates and shares rose over 4.5 percent ahead of the bell.
Liz Claiborne Inc. (LIZ) said Wednesday that its third-quarter loss widened as the women apparel maker's sales sank 24 percent amid the economic downturn. Loss per share was greater than analysts had estimated and shares fell over 3 percent in premarket.