Markets & Finance

Movers: Oracle, Motorola, Clear Channel, Comcast, Take-Two


Wednesday's stocks in the news

From Standard & Poor's Equity ResearchOracle (ORCL) reports third quarter non-GAAP EPS of 30 cents, meeting analysts' forecast, on revenue of $5.35 billion, below the $5.42 billion forecast. The company said software license updates and product support revenues were up 23% on a non-GAAP basis to $2.6 billion.

Motorola (MOT) commences process to create two independent, publicly-traded companies, separating its Mobile Devices and Broadband & Mobility Solutions businesses following a review process.

WSJ reports that private-equity firms behind Clear Channel Communications (CCU) $19 billion privatization deal and the banks financing it have failed to resolve their differences over the terms of the credit agreement. Other media sources reported similar news. NYT reports that CCU and the private equity firms that want to buy it may go to court to force lenders to complete the leveraged buyout. S&P maintains hold.

WSJ reports that the two biggest U.S. cable providers, Comcast (CMCSA) and Time Warner Cable (TWC), are discussing plan to provide funding for new wireless company that would be operated by Sprint Nextel (S) and ClearWires, people familiar with talks say. Under the plan the parties are reviewing, CMCSA, the largest cable operator, would put as much as $1 billion into venture, with No. 2 operator TWC adding $500 million. The sixth-biggest cable operator, Bright House Networks, is also involved in the talks and would contribute between $100-$200 million, people familiar with the matter said.

Take-Two Interactive Software (TTWO) rejects Electronic Arts' (ERTS) unsolicited conditional tender offer, calling the $26.00-a-share cash offer "inadequate in multiple respects and contrary to the best interests of TTWO's stockholders." The company's board recommended stockholders not tender any of their shares to ERTS.

Oppenheimer reportedly cuts estimates for several large U.S. banks, including Citigroup (C), Bank of American (BAC), Wachovia (WB) and JPMorgan Chase (JPM).

Ford Motor (F) announces that it has entered into a definitive agreement to sell its Jaguar Land Rover operations to Tata Motors for about $2.3 billion in cash. At closing, Ford will then contribute up to about $600 million to the Jaguar Land Rover pension plans.

Jabil Circuit (JBL) posts $0.20, vs. $0.14 a year ago, second quarter core EPS on 4% revenue rise. Posts $0.12 GAAP loss, principally due to restructuring charges. Expects second half of fiscal year 2008 revenue to be consistent with the first half, resulting in a year of modest growth but below its previous expectations. It sees $3.05-$3.15 billion third quarter revenue and $0.18-$0.22 core EPS; fiscal year 2008 revenue of $12.6-$12.8 billion and core EPS of $1.00-$1.16. JP Morgan downgrades to underweight from overweight.

Charlotte Russe Holding (CHIC) says it was disappointed with its sales performance for Easter holiday period, sees flat to low single-digit third quarter negative same-store sales decline, EPS of $0.27-$0.30. Reaffirms third quarter EPS guidance of $0.12-$0.15; taking into account $0.03 impact of tax adjustment, sees $0.15-$0.18 second quarter EPS.

AMR Corp. (AMR): CNBC reports that American Airlines is voluntarily canceling less than 10% of its flights today to check plane wiring as part of a national air worthiness directive by the Federal Aviation Administration.

West Marine (WMAR) posts $3.00 fourth quarter loss per share (including charges), vs. $0.60 loss a year ago, on 3% lower same-store sales, 4.6% lower total sales. Sees $0.02-$0.09 2008 EPS, 3.5%-5% lower same-store sales. Notes guidance does not reflect expense relating to ongoing SEC investigation.

Pep Boys-Manny, Moe & Jack (PBY) posts $0.36 fourth quarter loss from continuing operations (including $0.27 of restructuring costs), vs. $0.15 EPS a year ago, on 11% revenue drop.

Companhia Vale Do Rio Doce (RIO) says discussions regarding RIO's proposal to acquire Xstrata Plc have been discontinued.

China Sunergy (CSUN) posts $0.06 fourth quarter GAAP loss per share, vs. $2.18 loss a year ago, on 1.1% revenue rise.


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