Stocks to Watch: Zynga, Kellogg, Comcast (Update 1)

NEW YORK ( TheStreet) -- Online game maker Zynga ( ZNGA) posted a loss in the fourth quarter, weighed down by stock-compensation and other costs in its first quarter as a public company.

Zynga reported a loss of $435 million, or $1.22 a share, in the period.

Shares were dropping 9.3% to $13.02 in premarket trading Wednesday.

However, the company was able to top Wall Street's earnings expectations on an adjusted-basis.

For the three months ended Dec. 31, Zynga reported non-GAAP earnings of $37.2 million, or 5 cents a share, on revenue of $311.2 million. Analysts were expecting profit of 3 cents a share on revenue of $301.1 million.

Zynga sees non-GAAP earnings of 24 to 28 cents a share for fiscal 2012, above the current consensus view of 22 cents.

Food company Kellogg ( K) will be buying the Pringles brand from Procter & Gamble ( PG) for $2.7 billion after Diamond Foods' ( DMND) plans to buy the brand fell through days after the company announced that it was replacing its CEO and chief financial officer on the findings of serious accounting errors.

Kellogg shares were gaining 2.9% to $51.75 in premarket trading. P&G shares were down 0.2% to $64.38. Diamond Food shares were adding 6.3% to $23.70.

Comcast ( CMCSA) the nation's biggest cable-television company and the majority owner of NBC Universal, reported fourth-quarter earnings of 47 cents a share on revenue of $15.04 billion, beating the average analyst estimate of 41 cents a share on revenue of $14.94 billion.

The company also raised its dividend 44% to 65 cents a share and its board approved a share repurchase program of $6.5 billion.

Shares were jumping 6.1% to $28.90 in premarket trading Wednesday.

Farm equipment maker Deere ( DE) reported first-quarter earnings of $532.9 million, or $1.30 a share, up from $513.7 million, or $1.20 a share, the same time last year.

Analysts polled by Thomson Reuters were expecting earnings of $1.24 a share.

Shares were rising 1.1% to $90.02.

Talks between Yahoo! ( YHOO) and China's Alibaba over Yahoo!'s Asian assets have hit an impasse, Reuters reported Wednesday, throwing plans for a $17 billion tax-free asset swap into question.

The Reuters report cited sources briefed on the situation.

AllThingsD reported Tuesday that the deal between Yahoo! and Alibaba looks to be dead.

Meanwhile, Third Point's Daniel Loeb on Tuesday sought to install his own slate of directors on Yahoo!'s board.

Yahoo! shares were up 0.8% to $15.48.

Warren Buffett's faith in IBM ( IBM) and Intel ( INTC) deepened during the last few months, with the Berkshire Hathaway ( BRK.B) CEO raising his stake in both tech bellwethers.

Intel shares were up 0.5% to $26.90 in premarket trading.

Abercrombie & Fitch ( ANF), the teen retailer, is expected by analysts to earn $1.14 a share in the fourth quarter.

Shares were down 0.1% to $44.53.

NetApp ( NTAP), the data storage company, is expected by analysts to earn 44 cents a share, up from 42 cents a year earlier.

Revenue is forecast at $1.56 billion.

-- Written by Joseph Woelfel and Andrea Tse

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