Stocks in the news: Bank of America, Take-Two Interactive, Big Lots
Take-Two Interactive Software Inc. (TTWO) warned late Thursday that its results for the past quarter and the fiscal year would fall far below expectations and that it would post a loss in the first fiscal quarter. It blamed release delays, high development costs and low baseball game sales. Take-Two shares fell more than 26% ahead of the bell.
Big Lots Inc. (BIG) reported a better-than-expected quarterly profit of $30.3 million, or 37 cents per share, as initial markups and lower freight costs boosted gross margins. Big Lots raised its outlook for the holiday fourth quarter, and also said it will buy back $150 million of common shares, starting immediately. On an adjusted basis, the company earned 27 cents a share, while analysts were looking for a gain of 18 cents. Shares jumped nearly 11% before the bell.
Citigroup (C) is finding it hard to repay the remaining $20 billion worth of bailout funds it owes the U.S. government while the Treasury Department refuses to sell its 34% stake in the bank, people familiar with the bank said, according to Bloomberg.
LDK Solar (LDK) shares climbed more than 10% after it agreed with German firm Q-Cells to drop legal action over the a contract and announced that Q-Cells will continue its wafer supply contract with LDK.
Sun Microsystems (JAVA) shares gained more than 6% in premarket trading on news that a top legal expert on open-source software has told European antitrust regulators that their analysis of the deal with Oracle (ORCL) is partly flawed. Oracle intends to buy Sun for $7 billion.
Marvell Technology Group Ltd (MRVL) forecast a sharply better than expected fourth quarter as it reported strong demand for its storage, mobile and networking chips. Shares gained more than 7% ahead of the bell.
FedEx (FDX) will raise ground and home delivery rates by an average of 4.9% starting Jan. 4. It had previously said it was hiking express shipping rates by 5.9%. The price increases follow a similar move by UPS (UPS).
Select Analyst Calls:
- Citigroup upgraded Akami (AKAM) from hold to buy and upped the target from $23 to $31.
- Citigroup also upgraded Reynolds American (RAI) from hold to buy and raised target from $52 to $59.
- Citigroup downgraded AK Steel (AKS) and Netflix (NFLX) from buy to hold.