Ultimate Market Recap: Iffy Adobe Guidance, Jabil Jumps 7%
Pre-Bell Buzzers: Adobe Annihilated, Microsoft Mounts, Facebook Faded
Shares of Adobe Systems Inc. (NASDAQ:ADBE) are down 5.66 percent in pre-market trading. The company announced that net income for the second-quarter fell to $223.9 million (45 cents per share), compared to $229.4 million (45 cents per share) a year earlier. Revenue for the quarter rose 9.9 percent to $1.12 billion.
A Closer Look: Adobe Earnings Cheat Sheet>>
Microsoft Corp. (NASDAQ:MSFT) shares are edging higher 16 cents in pre-market trading, after closing nearly 3 percent higher on Tuesday. At a special Apple-wannabe (NASDAQ:AAPL) event in Los Angeles, the company unveiled its own Windows-powered tablet computer called Surface, a name it first used years ago to demonstrate a tabletop computer. The Surface is the first computer the company has ever made and will come in two versions. The Windows RT tablet is 9.3 mm thick and weighs 1.5 pounds, but the Windows 8 version is 13.5 mm and weighs about 2 pounds.
After closing down 8.55 percent during regular trading yesterday, J.C. Penney Co. (NYSE:JCP) shares are bouncing 5 cents higher premarket hours this morning. The department store operator unexpectedly announced that President Michael Francis is leaving, effective Monday. No reason was given and Francis had only been with JCP since October, near the time when former Apple executive Ron Johnson also joined the company. Both had previously worked together at Target Corp. (NYSE:TGT).
Facebook (NASDAQ:FB) shares are dipping .44 percent before the opening bell. However, the social-media giant jumped 1.6 percent on Tuesday after saying it will scrap its Credits virtual currency system and add the ability for developers to use subscriptions to monetize apps better.
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Procter & Gamble’s (NYSE:PG) shares fell 1.9 percent after the company announced a cut to its fourth quarter guidance, thanks to slower-than-expected growth in developed markets and forex fluctuations. P&G now has an estimated adjusted earnings per share of $0.75-$0.79, vs. prior guidance of $0.79 to $0.85 and a &0.82 consensus. With the slowdown, CEO Bob McDonald said the company will neither cut spending on research and development and advertising nor exit any emerging markets.
Adobe (NASDAQ:ADBE) also announced some less than favorable guidance after its second quarter earnings beat estimates. Shares are off 5.1 percent in early trading after the company provided below expectations guidance from European weakness. Net profit fell to $223.9 million from $229.4 million with an adjusted $0.60 earnings per share; revenue increased 10 percent to $1.12 billion. The report included subscription revenues–a first–which will affect sales by $10 million each in future quarters.
Apple (NASDAQ:AAPL) will attempt to save its case against Google’s (NASDAQ:GOOG) Motorola Mobility unit after its returns to court today. It will argue to a federal judge that it should be able to gain seek an order against the sale of some Motorola phones. Depending on the judge’s decision, it could have an effect on Apple’s capacity to negotiate licensing agreements in its fights against Motorola and other companies.
Research in Motion (NASDAQ:RIMM) has acknowledged layoffs and said “headcount reductions” will come from its strategy to cut $1 billion in operating expenses. Previously, the company said it would look to save money by decreasing its manufacturing sites. Analysts had expected job cuts ranging from 2,000 to 3,000 but 6,000 cuts has also been circulating.
Insight upped its offer from $23 to $25.75 for Quest Software (NASDAQ:QSFT); this comes in higher than a rumored$25.50 bid from Dell (NASDAQ:DELL). Quest has accepted Insight’s proposal, reported Reuters, which values the deal at $2.17 billion. Vector Capital has joined the buyout group.
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P&G SHAVES Profit Outlook and 4 Hot Stocks to Watch
The Procter & Gamble Company (NYSE:PG): After the company reduces its profit outlook, Procter & Gamble shares have fallen 1.85%. CEO Bob McDonald claims that the company will not decrease spending on R&D and advertising nor will it exit emerging markets as a result of the slowdown. Organic sales are anticipated to increase 2%-4%, and based on spot rates in early June, foreign exchange will show a negative impact of about 4% to fiscal 2013′s EPS growth. Shares of The Procter & Gamble Company are trading 3.36% lower today.
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Gevo, Inc. (NASDAQ:GEVO) shares are boosted following a Delaware District Court’s denial of a requst by Butamax Advanced Biofuels for a preliminary injunction against Gevo due to IP violation claims. The injunction allows Gevo to “sell in any market, to any customer, in any region,” and it replaced a former court order. Shares of Gevo, Inc. are trading 27.20% higher today.
WSI Industries, Inc. (NASDAQ:WSCI) reported sales of $9,483,000 for its fiscal 2012 Q3. This is a 45% increase over the $6,532,000 earned during the prior year’s quarter. The year-to-date sales for the nine months, which ended May 27, 2012, increased 27% from last year’s $17,742,000 to $22,491,000. Shares of WSI Industries, Inc. are trading 26.79% higher today.
AspenBio Pharma, Inc. (NASDAQ:APPY) plans to sell 6.1M common shares for $2 per share, which as a 36% discount compared to Tuesday’s closing price. The company intends to put net proceeds toward general corporate purposes, which includes a clinical trail for AppyScore, which is designed to assist physicians in managing emergency room patients believed to be suffering from acute appendicitis. Shares of AspenBio Pharma, Inc. are trading 37.83% lower today.
Jabil Circuit, Inc. (NYSE:JBL) possesses good margin guidance and seems to be expanding its competitive advantage over peers. The firm reiterates its Buy rating on the stock.
Network Engines SELLING to Unicom Systems and 4 More Hot Stocks
Adobe Systems Incorporated (NASDAQ:ADBE) falls as a result of its weak FQ3 guidance which was included in the FQ2 report, and JMP and Atlantic Securities have downgraded shares as a response. Credit Suisse gives the stock a Neutral rating and is concerned that FQ4′s implied guidance is “relatively aggressive.” Adobe boasted about its promotional help in ending FQ2 with more than 90K paid subs for its Creative Cloud platform. Adobe also states that 65% of paid subscribers are now subscribing to the whole Creative Cloud suite. Shares of Adobe Systems Incorporated are trading 3.65% lower today.
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La-Z-Boy (NYSE:LZB) reflects a declining revenue trend through its FQ4 report highlights. The company’s price action has seen a big swing and traded up 4% in AH trading following the report last night. Shares of La-Z-Boy Incorporated are trading 11.27% lower today.
Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX) has used an ongoing Phase 2b study of IDX184, which is its leading drug for hepatitis C, to provide positive clinical data showing suppression of the virus. Shares of Idenix Pharmaceuticals, Inc. are trading 16.01% higher today.
Walgreen Company (NYSE:WAG): Because several research firms do not support Walgreen’s acquisition of its 45% stake in Alliance Boots, a British drugstore chain, stock retreats. Citigroup and Macquarie state that the deal, allowing Walgreen the option to acquire the entire stake of Alliance Boots within three years, will not solve Walgreen’s U.S. problems. Shares of Walgreen Company are trading 4.35% lower today.
Network Engines, Inc. (NASDAQ:NEI) has agreed to be acquired by Unicom Systems, a larger IT company based in California, in a $63M deal. Shares of Network Engines, Inc. are trading 0.70% lower today.
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Facebook MOVES from Credits to Currency and 4 More HOT Stocks
Bank of America (NYSE:BAC) made mistakes allowing over a million dollars to be stolen by a Detroit man who made several large withdrawals from ATMs. The 55 year-old Ronald Page, plead guilty for bellying up to the bank repeatedly for a span of 15 days in 2009, until he’d finally withdrawn $1,543,104. Shares of Bank of America are trading 0.62% lower today.
Apple Inc. (NASDAQ:AAPL) was ruled against in a Dutch court regarding Apple’s issues with Samsung (SSNLF) about a 3G patent, the Verge reports citing AllAboutPhones. Samsung says it “will recover adequate damages that Apple and its products have caused.” Shares of Apple Inc. are trading 1.01% lower today.
Facebook, Inc. (NASDAQ:FB): The New York Post reports that Facebook has begun updating its payment services to support local currency instead of just “credits.” The company intends to sell “subscriptions” to users allowing them the use of certain services, and existing Credits balances will be converted to their appropriate currency. Shares of Facebook, Inc. are trading 1.95% lower today.
Affymetrix Inc. (NASDAQ:AFFX) has entered an agreement in which it will sell $105M aggregate principle amount of unsecured 4.00% Convertible Senior Notes which will be due in 2019. Affymetrix is also allowing underwriters to purchase as much as $10M aggregate principal amount of additional notes on identical terms and conditions as a way to cover over-allotments if they exist.
Nokia Corporation (NYSE:NOK) President of Asia Pacific operations Olivier Puech stated “The company has made a decision to continue investing heavily in Asia in terms of product development,” in an interview on Wednesday. On the side at the Mobile Asia Expo, a large trade show for the mobile industry which opened Wednesday in Shanghai, Peuch added “We will not compromise our commitment to China.” Shares of Nokia Corporation are trading 2.56% lower today.
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Daily Cheat Sheet Buzz: P&G at $60, Arena Amped at $10, Adobe Ambivalence
Shares of Procter & Gamble Co. (NYSE:PG) fell 3.47 percent in afternoon trading. The world’s largest consumer-goods company cut its earnings and revenue estimates for the second time in two months, citing “market-share softness in developed regions.” The company expects its earnings per share for the April-to-June quarter to be in the range of 75 to 79 cents, down from a previously expected range of 79 to 85 cents.
Arena Pharmaceuticals Inc. (NASDAQ:ARNA) jumped 3.09 percent as of this afternoon. Shares have been outperforming as the company expects a decision from the Food and Drug Administration on its diet drug lorcaserin this month.
Vodafone Group PLC (NASDAQ:VOD) shares dipped .32 percent this afternoon. In its joint venture with Verizon Wireless (NYSE:VZ), the company recently unveiled new pricing for mobile plans that focus on data usage by subscribers.
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Adobe Systems Inc. (NASDAQ:ADBE) shares dropped 2.86 percent. The company announced that net income for the second-quarter fell to $223.9 million (45 cents per share), compared to $229.4 million (45 cents per share) a year earlier. Revenue for the quarter rose 9.9 percent to $1.12 billion.
Affymetrix Inc. (NASDAQ:AFFX) shares climbed 2.37 percent as of this afternoon. The company announced an agreement today to sell $105 million aggregate principal amount of unsecured 4 percent Convertible Senior Notes, which are due 2019. Affymetrix plans to use the proceeds to aid its pending acquisition of eBioscience Holding Company.
Shares of Quest Software Inc. (NASDAQ:QSFT) declined .38 percent in afternoon trading. The company accepted a sweetened $25.75 per share bid from Insight Venture Partners. It was slightly higher than the $25.50 per share bid Quest received from Dell Inc. (NASDAQ:DELL) last week.
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Market Recap: Oil SPILLS 3.5%, Microsoft RALLIES, Operation TWIST
Markets closed down on Wall Street today:
Dow -0.10%, S&P -0.17%, Nasdaq +0.02%, Oil -3.53%, Gold -0.96%.
On the commodities front, Oil (NYSE:USO) declined to $81.06 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1,608 an ounce while Silver (NYSE:SLV) fell 0.25 to settle at $28.12.
Here’s your Cheat Sheet to today’s top stock stories:
Financial stocks were riding on a high on Wednesday after the Federal Reserve extended the Operation Twist program until the end of the year. Shares of JPMorgan Chase (NYSE:JPM) rose almost 4 percent to $36.71 also after a report that the bank had dumped a substantial part of a derivatives trade that cost it between $2 billion to $3 billion in losses. Shares of Citigroup (NYSE:C) rose almost 1 percent, American Express (NYSE:AXP) was up .72 percent, Wells Fargo (NYSE:WFC) ticked lower .82% and Bank of America (NYSE:BAC) gained .12% in the afternoon.
Microsoft’s (NASDAQ:MSFT) shares rose $0.23 cents a share to close at $30.93 after the company held its annual Windows Phone Summit in San Francisco on Wednesday. It provided details about the features in its to-be released mobile-phone operating system. Previously known as “Apollo”, it will include support for multi-core chips, built-in mapping technology and improved technology for the processing of digital payments, reported MarketWatch.
Applied Materials (AMAT) shares increased by more than 3 percent to close at $11.55. The company named its new president, Gary Dickerson. He was previously Varian Semiconductor’s chief executive; last year the company had been acquired by Applied. From the news, Barclays Research analyst C.J. Muse raised his rating on Applied’s stock to “Overweight” from “Equal Weight.”
Jabil Circuit Inc.(NYSE:JBL) shares rose almost 7 percent after the company announced on Tuesday its third quarter revenues came in better-than-expected. It also said it will stick with its prior forecast for fiscal 2013 sales. According to Bloomberg, analysts believe Jabils’ current quarter could be a turning point for the company. Investor optimism also spurred Wednesday’s rally.
AspenBio Pharma Inc.’s (NASDAQ:APPY) shares tanked more than 36 percent after the company said it would sell 6.1 million shares at $2 per share. That represents a 36 percent discount to Tuesday’s closing share price.