Spotlight Stocks: Bear Stearns, Crocs, Delta, Infosys
Tuesday's top stories and stocks with potential to move.
Stocks to watch for Tuesday, April 15, 2008:
- AstraZeneca (AZN), regarding a patent lawsuit with Indian generics maker Ranbaxy Laboratories, has entered into a settlement agreement. AZN had filed the suit regarding the sale of Ranbaxy's generic version of its Nexium heartburn drug.
- Bear Stearns (BSC) reported 1Q net income declined 79% to $115 million, or 86 cents a share, down from $554 million, or $3.82 a share a year ago. Revenue fell to $3.43 billion from $4.8 billion. The losses included about $600 million of write-downs tied to mortgages and leveraged finance.
- Crocs (CROX) lowered its 1Q and 2008 full-year sales and per- share earnings forecast and its board approved the repurchase of 5 million shares, reported Dow Jones Newswire. The company expects to range from a first-quarter loss of 5 cents a share to earnings of less than a penny a share on revenue of $195 million to $200 million. Excluding the one-time charge of $16 million, or 13 cents a share, for the closure of the company's Canadian manufacturing operations, per-share earnings are forecast at 8 cents to 13 cents. Crocs had forecast first-quarter per-share earnings of 46 cents on revenue of $225 million.
- Delta Airlines (DAL) officially unveiled its plan to buy Northwest Airlines (NWA) for over $3 billion, creating the world's largest airline. According to Reuters, U.S. airlines are hoping mergers could lead to higher fares as combined carriers reduce flights and use their increased market power to raise prices. Under the deal, NWA shareholders will receive 1.25 shares of Delta for each share they own.
- Infosys Technologies (INFY) reported a fiscal 4Q rise in profit of 9.2%. Net profit rose to 12.49 billion Indian rupees ($312.6 million) from 11.44 billion rupees a year earlier. Revenue for the company came in at 45.42 billion rupees, up from 37.72 billion rupees. The company said cancellations of business surprisingly did not come from the struggling US banking sector, but from other areas.
- MGM Mirage (MGM) announced it is cutting 440 managerial jobs, mostly in Las Vegas. The cuts are indicative of the downturn in the US gambling sector, which has become more exposed to travel-industry slumps as casinos have largely shifted from gambling to entertainment, fine dining and retail, reported the Wall Street Journal.
- Asian trading closed in the green with the Hang Seng +0.38%, Nikkei +0.57%, Sensex +2.19%, Taiwan +0.36% and Shanghai +1.57%.
- A quick look towards Europe finds the CAC -0.40%, DAX -0.27%, FTSE +0.72%, ATX +0.94%, Swiss Mkt. -0.16% and Stockholm -0.52%.
- Commodities are in the green with crude oil +0.81 to 112.59 and gold +6.6 to 932.0 this morning.
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