Stocks to Watch: Best Buy, Illumina (Update 2)
NEW YORK -- Best Buy (BBY), the electronics retailer, reported fiscal fourth-quarter profit of $2.47 a share, excluding items, on revenue of $16.73 billion..
Analysts were expecting profit of $2.16 a share on revenue of $17.2 billion.
Same-store sales dipped 2.4%; Wall Street was expecting a decline of 0.6%.
UBS kept a neutral rating on Best Buy ahead of the report on Wednesday but lifted its price target to $27 from $25, speaking of the company's cost reduction plans.3 Things That Could Move Financial Stocks Today Best Buy said it is planning $800 million in cost-cutting programs by fiscal 2015, including about $250 million in fiscal 2013. It will close 50 U.S. big-box stores in 2013. At the same time, the company will continue to accelerate key initiatives, including growing its business in China. Shares were popping 5.9% to $28.19 in premarket trading Thursday.
Swiss pharmaceutical company Roche increased its unsolicited offer for Illumina (ILMN) to $51 a share, valuing the U.S. diagnostics company at more than $6.5 billion. Roche's previous offer of $44.50 a share was rejected by Illumina's board as being too low. 5 Things You Should Know Before the Stock Market Opens Roche, in a statement Thursday, said "based on our discussions with Illumina shareholders we have seen interest to accelerate the takeover process." Illumina told its shareholders to "take no action at this time." Shares of Illumina were gaining 2.6% at $51.15 in premarket trading Thursday.
Research In Motion (RIMM), the troubled BlackBerry maker, is expected by analysts to report quarterly earnings of 82 cents a share, which is below the company's own expectation for earnings of 85 cents to 90 cents a share. RIM is working toward the release of its next-generation handset, the BlackBerry 10, in the second half of this year. 10 Consumer Stocks for the Stay-at-Home Investor Shares of RIM have fallen 4% so far in 2012.
Red Hat (RHT), the open source software company, posted earnings in the February-ended quarter that topped analysts' estimates. Red Hat reported a non-GAAP adjusted profit of $57.2 million, or 29 cents a share, on revenue of $297 million, up more than 20% from last year. Analysts were expecting earnings of 27 cents a share on revenue of $291.2 million. The company also unveiled a $300 million buyback program.
Red Lion Hotels ( RLH ) announced plans to explore strategic options. The company said its board has hired Bank of America Merrill Lynchto look at ways to "maximize shareholder value, including a potential sale of the company or a strategic combination with a third party." Red Lion has formed a strategic committee comprised of three independent directors to work with Bank of America on the review. The company didn't put any time constraints on the evaluation period, and said it would not be disclosing any developments unless or until a final decision is made.
Companies scheduled to report earnings Thursday include Bluefly (BFLY), Cache (CACH), Discovery Laboratories (DSCO) and JoS. A Bank Clothiers (JOSB). TIBCO Software (TIBX) is slated to report after markets close. TIBCO shares were rising 1.2% at $31.39. (TICKER) -- Written by Joseph Woelfel and Andrea Tse >To contact the writer of this article, click here: Andrea Tse
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV