Electronic Arts ( ERTS) announced after the bell Wednesday that it settled a class action suit filed on behalf of current and former computer graphic artists seeking overtime compensation. Under the settlement, the video game software publisher will pay $15.6 million to cover all claims by the class members and any fees. EA said any portion of the settlement that isn't claimed will be donated to the Jackie Robinson Foundation. The company's stock rose 15 cents, or 0.3%, to $54.70 in after-hours trading. Solectron ( SLR) reported net income for the fourth quarter ended Aug. 31 of $10 million, or a penny a share, compared with net income of $2.7 million, or a break-even, a year ago. The provider of electronics manufacturing said revenue for the quarter decreased to $2.4 billion from $3.04 billion last year. Excluding items, Solectron earned $37 million, or 4 cents a share. Analysts polled by Thomson First Call expected a profit of 4 cents a share on sales of $2.5 billion. The company forecast fiscal first-quarter earnings of 2 cents to 4 cents a share, before items, with sales of $2.3 billion to $2.5 billion. The guidance was below analysts' projection for earnings of 5 cents a share and sales of $2.63 billion. The stock dropped 11 cents, or 2.9%, to $3.68 after hours. Ruby Tuesday ( RI) said it earned $21.6 million, or 34 cents a share, for the first quarter ended Aug. 30, down from net income of $29.1 million, or 44 cents a share, a year ago. The casual-dining chain operator's revenue for the quarter rose to $308.2 million from $267.5 million. However, same-store sales at company restaurants decreased 3.9% for the quarter and same-store sales at franchise restaurants fell 6.4%. Analysts expected a profit of 33 cents a share on revenue of $303.2 million, according to First Call. Based on the effects of the recent hurricanes and oil prices, the company said it expects to earn 27 cents to 28 cents a share on sales growth of 2%. The stock was down 24 cents, or 1.1%, to $21.21 in after-hours trading.
Medicines Co. ( MDCO) slashed its 2005 earnings guidance, citing weak growth in demand for its anti-clotting agent Angiomax and the restructuring of its wholesaler arrangements. The company said it now expects to report a loss of $10 million on revenue of $150 million for the year. Medicines Co. had previously forecast earnings at the lower end of a $24 million to $31 million range, on revenue of $195 million to $204 million. For the third quarter, the company expects to report a loss of $10 million on revenue of $30 million. The stock plunged $4.28, or 19.5%, to $17.65 in after-hours trading. Among retailers, American Eagle Outfitters ( AEOS) posted a 13% increase in same-store sales for September, and said total sales for the month rose 20.9% to $183.8 million from $152 million last year. The clothing retailer also affirmed its third-quarter earnings guidance of 43 cents to 44 cents a share. Analysts are expecting earnings of 44 cents a share, according to First Call. The stock rose $1.25, or 5.4%, to $24.31 in after-hours. Jo-Ann Stores ( JAS) reported that September same-store sales rose 0.2%, with net sales rising to $176.1 million from $167.3 million a year ago. The arts and crafts retailer called its sales performance for the first nine weeks of the second half "a major disappointment" and said "it is clear that the company will not reach its earlier annual earnings guidance of $1.65 to $1.75." Still, the stock was up 6 cents to $16.65 in after-hours action. Hot Topic ( HOTT) said same-store sales decreased 5.6% for September. The retailer reported an 8% increase in net sales to $62.5 million. The company also backed its third-quarter earnings projection of 15 cents to 18 cents a share. The stock gained 95 cents, or 6.5%, to $15.54 in after-hours trading. Starbucks ( SBUX) reported 10% same-store sales growth for September. Consolidated net revenue for the five weeks ended Oct. 2 was $653 million, an increase of 5%. "We are very pleased by the double digit same store sales growth in September but we expect comparable store sales growth to return to our longer-term three to seven percent target range in October," said Michael Casey, Starbucks' financial chief. The coffee giant's stock rose $1.81, or 3.6%, to $51.62 in after hours.