Wall St. Brief: RIM Jumps After Earnings Surprise, Chevron and Transocean in Deep Trouble
Research in Motion (NASDAQ:RIMM) shares jumped 16.11 percent in premarket trading after the company’s FQ2 earnings were better than expected but it still incurred a $0.27 loss per share from the previous year’s $0.80 per share profit. Revenue dropped 31 percent to $2.87 billion. RIM shipped more Blackberries than estimated thanks to emerging markets, and in FQ1, increased its cash position to $2.3 billion from $2.2 billion.
Nike’s (NYSE:NKE) FQ1 net income dropped 12 percent to $567 million as revenue increased 10 percent to $6.67 billion; this beat forecasts, with increased costs and advertising spending offsetting rising sales of the company’s clothing and footwear brands. Earnings per share of $1.23 also exceeded estimates and Nike’s FQ2 revenue growth guidance was in line. Shares dropped 3.65 percent in after-hours trading as investors expressed concern about the company’s slowing futures-orders growth and Chinese demand.
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On Thursday, Chevron (NYSE:CVS) and Transocean (NYSE:RIG) had been served with injunctions and ordered to suspend Brazilian oil production and/or transportation activities within 30 days. Both companies have to contend with civil and criminal lawsuits from a November drilling accident at the Chevron-operated Frade offshore field.
Heineken (HINKY.PK), who is currently a 55.64 percent owner, will gain full control of Asia Pacific Breweries after Fraser & Neave (FNEVF.PK) shareholders voted to sell its 39.7 percent stake in APB to the Dutch brewer for about $6.3 billion. The vote came after a two-moth saga with Thai billionaire Charoen Sirivadhanabhakdi threatening Heineken’s plans.
Sharp (SHCAY.PK) acquired ¥360 billion ($4.6 billion) of syndicated funding, including a ¥180 billion loan and a ¥180 billion credit facility that will replace its current ¥150 billion arrangement. The financing will allow Sharp, which is a crucial Apple (NASDAQ:AAPL) supplier, to meet a month-end deadline to redeem the majority of ¥360 billion in commercial paper.
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