Stocks in the News: Alcoa, Chevron, Electronic Arts
Alcoa (AA) on Monday posted a narrower fourth-quarter net loss, helped by cost cuts and higher aluminum prices, but its earnings fell short of Wall Street's forecast. Excluding items, Alcoa reported earnings of one cent a share, below the six cents analysts were looking for, according to Thomson Reuters. Revenue fell 4% to $5.43 billion, but surpassed the Street's view for $4.82 billion. Shares in Alcoa dropped nearly 7% in premarket trading.%%DynaPub-Enhancement class="enhancement contentType-HTML Content fragmentId-1 payloadId-61603 alignment-right size-small"%% Chevron (CVX) warned that it expects to record lower profit for the fourth quarter compared with the previous quarter, blaming the shortfall in part on "significantly weaker" margins in its refining business. The company didn't give more specific guidance. Analysts polled by Thomson Reuters expect Chevron to earn $1.75 per share on $43.5 billion in revenue. CVX shares fell about 1.7% ahead of the bell.
Cadbury PLC (CBY) on Tuesday stepped up its defense against a hostile takeover bid from Kraft Foods Inc. (KFT) by announcing that both its full-year revenue growth and profit margins will beat market expectations. Cadbury said that Kraft has a "poor track record of delivery," and therefore the share portion of its 10.3 billion pound ($16.5 billion) bid is unappealing.
KB Home (KBH) reported it swung to profit in the fourth-quarter, but it included an income tax benefit. Meanwhile, revenue fell 27% to $674.6 million, but beat estimates. Shares were down over 1% in premarket trading.
Supervalu (SVU) reported third quarter EPS of 51 cents vs. consensus of 43 cents and gave higher guidance than analyst estimates. Shares rose about 6.8% ahead of the bell.
Electronic Arts (ERTS) cut its full-year 2010 guidance on Monday, as ongoing weakness in its game disc and European sales persisted over the holidays. Shares declined about 8.8% before the bell.
GameStop Corp. (GME) said it plans to buy back $300 million in common shares, which should add to earnings per share by 10%. GameStop also said it plans to spend $200 million to open 400 new stores and for other capital expenditures. Shares were 2.3% higher in premarket trading.
AMR Corp. (AMR), parent of American Airlines, said Tuesday it and three other carriers are prepared to inject $1.4 billion in cash (up from $1.1 billion) to help struggling Japan Airlines Corp., and also provide JAL with $2 billion over three years to keep it from defecting to rival Delta's (DAL) alliance, even as the money-losing Japanese carrier moved closer to bankruptcy.
Airbus on Tuesday said it delivered a record 498 aircraft in 2009, beating rival Boeing's (BA) 481 aircraft production in 2009, maintaining its place as the world's largest planemaker, but the CEO warned about a troubled military transport jet program.
Ford Motor Co. (F) announced Monday it will invest another $450 million and create about 1,000 jobs as it further consolidates its electric vehicle program in southeast Michigan. Infosys Technologies (INFY) posted a better-than-expected third quarter and gave an upbeat profit forecast. Shares gained about 3.3% before the bell.
Walmart Stores, Inc. (WMT) reacted to reports of high levels of cadmium in children's jewelry made in China, pulling many suspect items from its store shelves.
Stereotaxis Inc. (STXS) said Tuesday it received regulatory approval for a catheter that is used to treat irregular heartbeats. Shares jumped over 11% in premarket trading.
Domino's Pizza Inc. (DPZ) brutally honest pizza commercials about its old recipes are certainly stirring interest. Citigroup upgraded DPZ from hold to buy.
H.J. Heinz Co. (HNZ) affirmed its fiscal 2010 continuing operations earnings outlook slightly lower than estimates. The company said the guidance includes Venezuela's currency devaluation.
Salesforce.com Inc. (CRM) plans to offer $500 million in convertible senior notes due in 2015. Shares slumped nearly 5% ahead of the bell.
Tiffany&Co. (TIF) said its global sales climbed 17% in the November and December holiday sales. It boosted its annual profit forecast as a result.