Ultimate Market Recap: Facebook App Store, StarTrek Soars 58%
Top Wall Street Stock Headlines: Facebook to Challenge Apple, FedEx Cuts a Deal
Sony (NYSE:SNE) has reported a record annual net loss of $5.7 billion in fiscal year 2012. This represents its fourth consecutive year of losses thanks to problems in its TV division. A strong yen had consolidated sales dropping 9.6 percent to YEN6.5 trillion ($8.2billion). Looking for a bright spot, Sony foresees a recovery this fiscal year with its forecast of YEN30 billion net profit and YEN 180 billion operating profit.
Panasonic (NYSE:PC) and the Japanese trading house Itochu will merge their mobile-phone sales units. This will create Japan’s third-largest handset firm, according to Nikkei. This could take place by October with Panasonic’s Panasonic Telecom Co. folding into ITC Networks Corp (JP:422); Itochu is a 60 percent owner, according to MarketWatch. In the end, Itochu may have a less than a 50 percent ownership in the merged entity, while Panasonic would have “roughly 20 percent.”
Morgan Stanley (NYSE:MS) has appeared as a large shareholder in KPN (KKPNY.PK), disclosing that it has a 10.01 percent ownership in the Dutch company. Morgan purchased the stake only three days prior to America Movil’s (NYSE:AMX) EUR 8 per share offer for KPN. The Mexican company has said Morgan isn’t holding the position on its behalf.
Facebook (FB) will launch an app store in the coming weeks that will be customized for each of its users, similar to the site’s News Feed display content. Malorie Lucich, a Facebook spokeswoman said, “We’re trying to solve that app discovery problem. For a lot of people, it’s hard to find this stuff.” The company is taking submissions from developers who are interested in selling their apps in the network, which could an offer a new revenue stream for the company, according to Bloomberg. Similar to Apple Inc. (NASDAQ:AAPL), not everyone will get their app into the App Center if it doesn’t “meet a high quality bar.”
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FedEx Corp.(NYSE:FDX) announced plans on Thursday to purchase Tatex, the French business-to-business express transporation company. It did not disclose the price but the privately-held, 1,000-employee company will help the company expands its European business. The company said, “The acquisition will give FedEx Express access to a nationwide domestic ground network.”
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Hot Stocks You Must-Know: Kohl’s, StarTek and More
Raymond James have downgraded PSS World Medical, Inc. (NASDAQ:PSSI) following a Q4 that missed analyst predictions. PSS reported earnings per share of 38 cents for the period, falling short of the expected 43 cents EPS. Revenues were also in need of a little triage, coming in at $538.9 million. Analysts had PSS at $556.04 million.
Shares of the medical supplies distributor, which has announced plans to integrate all warehouse operations into one common distribution infrastructure, are trading 5.18% lower today.
Shares of Kohl’s Corporation (NYSE:KSS) are down in early trading after the release of its Q2 earnings guidance. The department store chain that gives you the chance to wear Vera Wang without having to take a walk down the aisle reported that it’s guidance is based on total sales growth of 2%-3% and flat comparable store sales growth of 1%. Share purchases for the period are expected to be $250 million. Kohl’s says that it sees improved gross margins coming back into style for the fall, but they will still be down from the same period last year.
Shares of Kohl’s Corporation are trading 4.05% lower today.
StarTek, Inc. (NYSE:SRT) beat predictions for Q1, with revenues for the first three months of the year reported at $50.9 million. Analysts had StarTek at $46.42 million. Building on its relationship wit Cincinnati Bell, the outsourcing services provider has agreed to house its customer care jobs in Bell’s Tri-State region.
Shares of StarTek, Inc. are trading 58.79% higher today.
Galena Biopharma Inc (NASDAQ:GALE) had added Robert Figlin, M.D., F.A.C.P. to the company’s Scientific Advisory Board. Dr. Figlin comes to the table with an impressive pedigree. Board-certified in both medical oncology and internal medicine, he is currently the Associate Director of the Academic Development Program and Director of the Division of Hematology/Oncology at Cedars-Sinai’s Samuel Oschin Comprehensive Cancer Institute.
Stock Buzzers: Cisco and Priceline.com Decline, Monster Surges 13%
Cisco Systems Inc. (NASDAQ:CSCO) shares are down over 10 percent today. Late Wednesday, the company reported third-quarter net income of $2.17 billion (40 cents per share), compared to $1.81 billion (33 cents per share) a year earlier. Revenues increased 6.8 percent to $11.6 billion in the same period.
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Avon Products Inc. (NYSE:AVP) dropped over 1 percent in early trading. Fragrance maker Coty Inc. improved its offer to $10.69 billion, or $24.75 per share. Coty is also receiving equity financing from Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRKA) in the offer.
Shares of Priceline.com Inc. (NASDAQ:PCLN) are down over 4 percent in trading after reporting financial results late Wednesday. Net income for the company jumped 73.7 percent to $182 million ($3.54 per share), compared to $104.8 million ($2.05 per share) a year earlier. “The Priceline Group’s hotel business booked 46 million room nights in the 1st quarter, up 47% over last year,” said Jeffery H. Boyd, President and Chief Executive Officer. “International gross bookings increased 54% (58% on a local currency basis), driven by strong hotel results at Booking.com and Agoda.com and continued growth at Rentalcars.com.”
Monster Beverage Corp. (NASDAQ:MNST) shares are climbing over 10 percent Thursday. The energy beverage company reported strong quarterly results after the closing bell. For the first-quarter, net income increased to $76.1 million (41 cents per share), beating estimates of 38 cents per share by analysts.
Shares of Tesla Motors Inc. (NASDAQ:TSLA) jumped more than 11 percent in today’s trading. The auto company announced it will deliver its Model S sedan to customers next month, slightly ahead of schedule than it had previously estimated. “Tesla is entering one of the riskiest moments of its company’s history, so anything that supports an on-time launch should be viewed with some relief,” Morgan Stanley analyst Adam Jonas said in a research note.
Caterpillar Inc. (NYSE:CAT) shares are lower .43 percent today after announcing it will sell a 65 percent stake in its Caterpillar Logistics Services LLC division to Platinum Equity. The deal is valued at $750 million and Caterpillar will retain the remaining 35 percent stake.
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Late Radar Movers: JPM and Nordstrom Sink Lower, Sotheby’s Gains
JPMorgan Chase and Co. (NYSE:JPM) shares dropped more than 4 percent in after-hour trading. The bank is holding an unexpected conference call and says its Chief Investment Office has significant mark-to-market losses. Furthermore, legal losses of $4.2 billion are “reasonably possible.” S&P downgraded the bank’s servicing unit to Average from Above Average. Other banks such as Wells Fargo & Co. (NYSE:WFC) also declined.
Shares of Sotheby’s (NYSE:BID) increased 1.65 percent after the closing bell. The auction house reported a loss of $10.7 million (16 cents per share) in the first quarter, compared to a net income of $2.4 million (3 cents per share) a year earlier. The results were inline with estimates.
Nordstrom Inc. (NYSE:JWN) shares fell 3.61 percent in extended trading after reporting first-quarter results. Net income for the company rose 2.8 percent to $149 million (70 cents per share), compared to $145 million (65 cents per share) a year earlier. It fell short of the mean analyst estimate of 75 cents per share. Gross margin also shrank 0.6 percentage point to 39.7 percent.
Express Scripts Holding Co. (NASDAQ:ESRX) declined 1.2 percent late Thursday. The company reported that net income fell 18 percent to $267.8 million (55 cents per share) in the first-quarter, compared to $326.5 million (61 cents per share) a year earlier.
After closing 3.29 percent higher in regular trading, shares of Avon Products Inc. (NYSE:AVP) edged slightly higher after the closing bell. Fragrance maker Coty Inc. improved its offer to $10.69 billion, or $24.75 per share. Coty is also receiving equity financing from Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRKA) in the offer.
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