Oracle Slightly Tops Estimates

Yahoo to buy Musicmatch; Office Depot warns; plus more of Tuesday's stocks in the news

After the close of trading Tuesday, software giant Oracle (ORCL ) posted first-quarter 10 cents earnings per share, vs. 8 cents. Revenue rose to $2.2 billion, vs. $2 billion. Analysts, on average, were expecting 9 cents earnings per share on revenue of $2.23 billion.

Yahoo! agreed to buy Web-based digital music and software provider Musicmatch for $160 million in cash.

Kroger (KR ) posted 19 cents, vs. 25 cents second-quarter EPS despite 2.1% same food-store sales (including fuel). It says it will be challenging to achieve fiscal 2005 same food-store sales. S&P keeps hold.

Office Depot (ODP ) cut the third-quarter earnings per share guidance to 26 cents to 28 cents and cut the 2004 guidance to to $1.08 to $1.14, citing recent hurricanes. The retailer doesn't expect to recover the shortfall during the fourth quarter, and sees additional risks because of a lowered sales outlook for the balance of the year.

Jefferies initiated coverage on Playboy Enterprises (PLA ) with buy.

JP Morgan upgraded Harrah's Entertainment (HET ) to outperform from neutral.

LSI Logic (LSI ) says based on customer reassessment of end demand for the second half of the year, it lowered the $435 million to $465 million third-quarter revenue guidance to $370 million to $400 million, and cut the breakeven to 3-cent third-quarter loss (GAAP) to a 14-cent to 17-cent loss. Wachovia downgraded to market perform from outperform.

A consortium led by Sony (SNE ) and its equity partners confirmed it has agreed in principle to acquire Metro-Goldwyn-Mayer (MGM ) for $12 cash per share, plus the assumption of debt. Time Warner (TWX ) dropped out of the bidding late Monday.

Pier 1 Imports (PIR ) posted 12 cents, vs. 20 cents second-quarter earnings per share on a 3% same-store sales drop and a 5.7% total sales rise. Pier 1 sees third-quarter same store sales of -4% to flat and 28 cents to 35 cents earnings per share. The retailer sees 52 cents to 62 cents fourth-quarter earnings per share and $1.05 to $1.22 fiscal 2005 earnings per share.

Cardinal Health (CAH ) expects a 25% first-quarter earnings per share decline, and a 10% to 15% first-half decline, citing model transition in the pharmaceutical-distribution business. Cardinal delayed filing a 10-K for fiscal 2004, and filed an 8-K with the SEC providing information about the effect of an expected restatement.

Bisys Group (BSG ) delayed filing its Form 10-K for fiscal 2004. Bisys cited certain issues, particularly in connection with the documentation process in the company's preparation for a SAS 70 review. It has hired independent counsel to assist in the investigation.

Vivendi Universal (V ) posted 888 million euros, vs. 833 million euros in second-quarter operating income on an 8.4% revenue rise. Vivendi raised the 2004 guidance to above 1 billion euros in adjusted net income.

Cisco Systems (CSCO ) agreed to acquire privately held Dynamicsoft. Terms: $55 million in cash, including $3.8 million in outstanding debt.

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