Stocks in the news: FedEx, Oracle, AMR Corp., Discover
FedEx Corp. (FDX) said Thursday its first-quarter earnings fell 53 percent as revenue fell 20 percent and warned its profit will remain weak through at least the end of the year. But the company considered a bellwether of economic health, also said it does see signs of improvement in the economy. Results were inline with estimates. Shares fell 1.5 percent ahead of the bell.
Oracle Corp. (ORCL)'s quarterly software sales came in sharply below expectations as net new license fell 17 percent. The disappointing results were even more surprising in light of recent positive outlooks from Intel (INTC) and dampened hopes that corporate technology spending is rebounding. Shares were about 3 percent lower in pre-market action.
Discover Financial Services (DFS) said Thursday that its fiscal third quarter profit rose to $577 million, or $1.07 a share. While the results included a $287 million, after-tax settlement, the company said it was still profitable in the quarter, beating analyst estimates for a loss of 9 cents per share. Shares climbed 4.7 percent in pre-market trading.
AMR Corp. (AMR), the parent of American Airlines, has obtained $2.9 billion in new financing and is making changes in its flight schedule to help cope with weak demand and declining revenue in the airline industry. Shares soared 20 percent before the bell.
Pier 1 Imports Inc. (PIR) reported a smaller second-quarter loss on Thursday, helped by reduced expenses and lower inventories. Shares jumped over 7 percent in pre-market trade.
Eastman Kodak (EK) plans to raise up to $700 million, including a commitment from private equity firm KKR, to bolster its balance sheet and free up capital for investments, the company said on Wednesday. Shares fell nearly 2 percent.
Smithfield Foods Inc. (SFD) said it's priced its previously announced public offering of 21.7 million shares at $13.85 apiece.
Palm Inc. (PALM) investors will get their first glimpse at sales of the Pre smart phone today, as some analysts predict demand may not live up to the hype that drove a 10-fold jump in the stock.
Google Inc. (GOOG) announced a deal Thursday with the maker of a high-speed publishing machine that can manufacture a paperback-bound book of about 300 pages in under five minutes, thus giving the 2 million books in its digital library a chance to be reincarnated as paperbacks.
eBay Inc. (EBAY) and the investor group that has agreed to buy Skype, have been sued by the founders of online telephony service, which accused them of copyright violation. The suit could potentially disrupt the $1.9 billion deal.
Bank of America (BAC) -- five board members have been subpoenaed by the New York Attorney General's office as part of an investigation into the bank's acquisition of Merrill Lynch.