Eastman Kodak: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of Eastman Kodak ( EK) slumped in late trades on Monday after the company suffered a setback in a patent dispute with Apple ( AAPL) and Research in Motion ( RIMM).

The company said a judge in the case made an initial determination that the patent claim at issue "is invalid and not infringed." Kodak's claim is related to a technology it invented for previewing images on a digital camera-enabled device. The case is being reviewed by the International Trade Commission, and that it remains optimistic about the final decision.

The stock was last quoted at $4.80, down 8.1%, on volume of roughly 150,000, according to Nasdaq.com. Based on a regular session close at $5.22, the shares are up almost 16% in the past 52 weeks.

"The ALJ's recommendation represents a preliminary step in a process that we are extremely confident will conclude in Kodak's favor," said Laura Quatela, Kodak's general counsel, said in a press release, adding later: "We fully expect the ITC Commission will ultimately rule that the patent claim at issue is valid and infringed by Apple and RIM."

Kodak filed its claim against Apple and Research in Motion a little more than a year ago, and the company notes it has licensed the patent at issue to numerous technology companies, including Motorola, Nokia and Samsung.

CSX Corp.

Revenue growth of more than 20% carried CSX Corp. ( CSX) to a better than expected profit in the fourth quarter, sending the stock up more than 2% to $69.15 on volume of more than 400,000 in after-hours action.

The Jacksonville, Fla.-based railroad operator said it earned $430 million, or $1.14 a share, on revenue of $2.82 billion for the three months ended Dec. 31, 4 cents ahead of the average estimate of analysts polled by Thomson Reuters for a profit of $1.10 a share on revenue of $2.67 billion.

CSX shares have jumped 53.3% in the past 52 weeks, and Wall Street remains mostly bullish with 23 of the 32 analysts covering the company at either strong buy (10) or buy (13). The median 12-month price target of $75 implies potential upside of almost 11% from Monday's regular session close at $67.71.

The company also said it expects to report "record" financial results in 2011, and that it plans to invest $2 billion in its business this year with roughly two-thirds of those monies going into infrastructure and rolling stock and the rest split between strategic and regulatory investments.

Texas Instruments

Shares of Texas Instruments ( TXN) were down almost 3% to $33.75 on volume of around 570,000 after the chip maker reported its fourth-quarter results.

The company came in a penny ahead of Wall Street's profit view for the December period but its outlook offered some downside to current analyst expectations and orders fell on a sequential basis for a second straight quarter.

Texas Instruments reported earnings of $942 million, or 78 cents a share, for the three months ended Dec. 31. Those results included a gain of 14 cents a share related to an asset sale and a tax benefit. Backing out the gain, the company earned 64 cents a share in the latest quarter, edging the average analysts' view.

Revenue came in at $3.53 billion for the December period, up 17% from the year-ago equivalent total of $3.01 billion, and incrementally ahead of the consensus estimate.

On Dec. 7, the company tightened its outlook for the fourth quarter, forecasting earnings of 61 to 65 cents a share on revenue of $3.43 billion to $3.57 billion. Orders stood at $3.13 billion at quarter's end, down 4% from last year and off 9% on a sequential basis.

VMWare

Shares of VMWare ( VMW) were weak late Monday after the Palo Alto, Calif.-based maker of virtualization software topped Wall Street's expectations for its fourth-quarter results but disappointed investors by saying its operating margin will remain flat in 2011.

"As we continue to invest to take advantage of the generational shift underway in IT, we do not anticipate expansion of operating margins in 2011," said VMware CFO Mark Peek in a press release.

The stock was last quoted at $83.84, down 4.4%, on volume of 1.83 million, according to Nasdaq.com. Based on a regular session close at $87.73, the shares were up nearly 120% in the past 52 weeks.

VMware reported earnings of 46 cents a share on revenue of $836 million for the three months ended Dec. 31, up from a profit of 31 cents a share on revenue of $608 million in the same period last year. Analysts surveyed by Thomson Reuters had predicted earnings of 44 cents a share and revenue of $803.6 million.

Ethan Allen Interiors

Ethan Allen Interiors ( ETH) reported adjusted earnings of $5.6 million, or 19 cents a share, on sales of $123.3 million for its fiscal second quarter ended Dec. 31, up from a year-ago equivalent loss of $1.6 million, or 6 cents a share, and a dime ahead of the average estimate of analysts polled by Thomson Reuters for earnings of 9 cents a share.

Sales rose 21% to $173.3 million in the December period from $143.3 million in the same period last year, and beyond Wall Street's consensus view of $161.3 million.

The stock got a lift on light volume in late trades, rising nearly 13% to $23.50. The shares have gained almost 34% in the past 52 weeks.

-- Written by Michael Baron in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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