RealNetworks (RNWK), Napster (NAPS), and Apple (AAPL) shares fell on news that Yahoo! (YHOO) is launching a competing online music service. S&P cut its price target for RealNetworks, and reiterated its buy ranking.
DreamWorks Animation (DWA) posted 44 cents first-quarter earnings per share, vs. a 33 cent loss, on sharply higher revenue. The earnings fell short of the 58 cents consensus forecast. The animated film studio says Shrek 2 did not meet its retail sales expectations. DreamWorks sees $1.00 to $1.25 2005 EPS, with substantially all of the total, less first-quarter EPS, coming in the fourth quarter.
Arena Pharmaceuticals (ARNA) reports promising results from a Phase 2 clinical trial of its APD356 drug candidate for obesity treatment. CIBC World reiterates sector perform.
Infocrossing (IFOX) reported first-quarter earnings per share of 11 cents, vs. 5 cents a year ago, on sharply higher revenues. The company sees EPS of 11 cents in the second quarter and 72 cents to 74 cents for 2005. Needham downgraded to hold from buy.
Cisco Systems (CSCO) posted third-quarter earnings per share of 21 cents, vs. 17 cents one year earlier, on a 10% sales rise. Excluding special items, Cisco earned 23 cents per share, vs. 19 cents a year ago, a penny above the consensus estimate.
4Kids Entertainment (KDE) posted first-quarter EPS of 14 cents, vs. 22 cents, on a 9.8% revenue drop. The company notes an overall decrease in licensing revenue for its properties and a decline in advertising revenue for 4Kids TV as compared to the 2004 first quarter.
Oshkosh B'Gosh (GOSHA) agreed to be acquired by a unit of Carter's (CRI) in a $312 million deal. Terms: $26 cash per Oshkosh share.
Bob Evans Farms (BOBE) posted 5.8% lower April same-store sales in Bob Evans Restaurants. The company sees fourth quarter EPS of 16 cents, including 5 cents in additional depreciation and amortization expense. It says fourth-quarter restaurant segment operating margins continue to be depressed.
Forest Labs (FRX) sets a new 25 million share buyback.
O'Charley's (CHUX) posted first-quarter EPS of 44 cents, vs. 33 cents, on an 8.5% revenue rise. It sees 19 cents to 23 cents second-quarter EPS, and $1.10 to $1.16 for all of 2005.
Ceridian (CEN) posted first-quarter EPS of 15 cents, vs. 11 cents, on a 14% revenue rise. The company sees EPS for the second quarter of 14 cents to 15 cents, 15 cents to 17 cents for the third quarter, and 23 cents to 26 cents for the fourth.
Spectrum Brands (SPC) will increase Rayovac brand alkaline and zinc carbon battery prices by 6% to 7% in the U.S. retail market from Aug. 1. The company cites a significant increase in raw material costs and improvement in battery performance.