Stocks in the news: Palm, UBS, Boeing, KB Home
Palm Inc (PALM) posted a wider loss for its fiscal fourth quarter Thursday after the close, but it was narrower than analysts' expectations. It said demand for its just-unveiled Pre smartphone exceeded expectations, although these were not included in the quarter. The Pre competes with Apple Inc's (AAPL) iPhone and Research in Motion's (RIMM) and the company hopes it would help it return to profitability. Shares jumped over 11 percent in pre-market trade.
UBS AG (UBS) raised about 3.8 billion Swiss francs ($3.5 billion) by selling 293.3 million shares for 13 francs apiece. UBS also said it expects a second-quarter loss. UBS is the European bank with the biggest losses from the credit crisis and the fund raise was needed to bolster its balance sheet as well as client and investor confidence. Shares declined over 4 percent ahead of the bell.
Boeing Co. (BA) lately seems to hit one roadblock after another. The airplane maker lost half of a 30-plane order for its 787 Dreamliner from Australian Qantas Airways Ltd. Qantas also delayed the delivery of four other planes by four years. The cancellation is valued by as much as $3.1 billion based on Boeing's current list prices. Boeing has lost orders for 58 Dreamliners this year. Like Qantas, most other cancellations were due to slumping demand for international travel, but the delays in the 787 launch most likely have not helped Boeing's cause either. Shares fell 1.7 percent in pre-market trade.
KB Home (KBH) posted a wider-than-expected quarterly loss of $78.4 million, or $1.03 per share, on Friday. Analysts expected a loss of 72 cents per share, according to Reuters Estimates. Revenue fell 40 percent to $384.5 million, but was above estimates. KBH also said it saw signs that negative trends in the housing market were moderating.
Apple Inc. (AAPL) raised its stake in chip designer Imagination Technologies Group Plc to 9.5 percent from 8.64 percent, by buying shares worth 3.14 million pounds ($5.16 million).
Bank of America Corp. (BAC) completed offers to exchange preferred stock for new common stock, and said it exceeded the stress test target of $33.9 billion in capital.
Micron Technology Inc. (MU) reported a wider fiscal third-quarter loss of $290 million, or 36 cents a share, but beat analyst estimates of a 41 cents a share loss. Revenue fell 26 percent to $1.1 billion, lower than estimates.
Citigroup (C) "has been ordered by Japanese regulators to stop marketing financial products at its retail bank for a month, a slap that is unlikely to squeeze revenue but will further tarnish the U.S. bank's reputation in a key market," Reuters reported.
Potash Corp. of Saskatchewan Inc. (POT) lowered its second-quarter earnings estimate to approximately 70 cents a share from a previous estimate of $1.10 to $1.50 a share. The new estimate was far below what analysts had projected. Shares declined over 2 percent ahead of the bell.