Wall St. Brief: Groupon TANKS, Home Depot BEATS the Street, Kodak EXTENDS Patent Auction
Groupon (NASDAQ:GRPN) shares tanked 22.25 percent this morning after reporting its revenue growth was almost stagnant in the second quarter; the company did see its first quarterly profit. Groupon’s net income was $28.4 million vs. a loss of $107.4 million from the previous year. Earnings per share of $0.08 exceeded estimates and revenue rose 45 percent on the year to $568.3 million.
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Home Depot’s (NYSE:HD) fiscal second quarter earnings per share increased to $1.01 from $0.86 in the previous year. It beat forecasts and the company increased its fiscal year outlook above analysts’ estimates. Revenue had a slight increase of 1.7 percent to $20.6 billion but missed estimates. The company did enjoy “continued demand for core products” as its average ticket and transaction volumes slightly increased.
The FCC and Department of Justice are getting ready to authorize Verizon Wireless’ (NYSE:VZ) $3.9 billion acquisition of airwaves from numerous cable companies such as Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC), reported the Wall Street Journal. In exchange, the companies will restrict the scope and length of agreements to sell each other’s services from deals after concerns rose they wouldn’t stop competing for Internet subscribers.
Toshiba (TOSYY.PK) will sell a 16 percent holding in Westinghouse Electric as it prioritizes its nuclear business in emerging markets. The company purchased a 77 percent share in Westinghouse back in October 2006 for approximately $4.2 billion. It is looking for buyers that have strong relationships to emerging markets. One preferred buyer is reportedly U.S.-based.
Eastman Kodak (EKDKQ.PK) extended the deadline to bid on its patent portfolio after round one with a group of tech companies was disappointing. This doesn’t bode well for Kodak’s intent to leave bankruptcy protection.