Early Buzzers: Red Hat and Bed Bath & Beyond PLUMMET, Rite Aid SURGES
Red Hat Inc. (NYSE:RHT) shares dropped more than 4 percent after the opening bell. The company reported a fiscal first-quarter profit of $37.5 million (19 cents per share), compared to $32.5 million (17 cents per share) a year earlier. However, Red Hat reported billings of $310 million for the quarter, below estimates of $319 million.
Apple Inc. (NASDAQ:AAPL) shares edged slightly gained by 0.06 percent in start of the trading session. Samsung has won a 3G patent dispute against Apple in the Netherlands and is reportedly planning to seek compensation from the California company. Apple’s iPhone 3G, iPhone 3GS, iPhone 4, the first-generation iPad, and iPad 2 were found to be infringing on Samsung’s European-held patent. The Korean company said in a statement that it would “recover adequate damages” from Apple and that the decision proves “that Apple makes free use of our technological innovations.”
Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares plummeted 14.59 percent after the opening bell. The company reported first-quarter net income of $206.8 million (89 cents per share), compared to $180.6 million (72 cents per share) a year earlier. Revenue increased 5.1 percent to $2.22 billion. However, analysts were expecting revenue of $2.25 billion.
Chesapeake Energy Corp. (NYSE:CHK) shares fell 2.52 percent on Thursday morning. The natural gas giant announced the appointment of five new independent directors to its reconstituted nine-member Board of Directors. Business Wire reports, “These five new directors replace Richard K. Davidson, Kathleen M. Eisbrenner, Frank Keating and Don Nickles who have resigned and Charles T. Maxwell who retired at the annual meeting on June 8, 2012. Following the annual meeting, Mr. Davidson and V. Burns Hargis submitted their resignations when they did not receive support of a majority of the shares voted.”
Shares of Rite Aid Corp. (NYSE:RAD) jumped nearly 8.55 percent this morning. The company’s first-quarter net loss narrowed to $28.1 million, compared to a loss of $63.1 million a year earlier. Revenue also increased 1.2 percent to $6.47, beating analysts estimates of $6.43 billion. “Our turnaround efforts continue to be successful as demonstrated by our sixth consecutive quarter of increased same store sales and Adjusted EBITDA,” said Rite Aid Chairman, President and CEO John Standley. “During the quarter, we saw strong growth in same-store prescription counts while key initiatives like our popular wellness+ customer loyalty program, enhanced Rite Aid brand offerings and ground-breaking Wellness store format continued to gain traction.
Facebook (NASDAQ:FB) shares popped 1.3 percent this morning. Both Ford Motor Co. (NYSE:F) and Coca-Cola Co. (NYSE:KO) separately said they found value in Facebook advertising, giving the social networking site a big vote of confidence as it struggles to recover from a disastrous IPO.
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