Amazon Net Falls Amid Rising Costs

GM posts a larger loss; H-P to buy Mercury Interactive for $4.5 billion; plus more stocks in the news Wednesday

From Standard & Poor's Equity Research

Boeing (BA) posts 21 cents second quarter loss (including items) vs. 70 cents EPS despite a 2% revenue rise. It cuts its 2006 EPS estiamte to $2.40-$2.55, but ups its 2007 EPS and revenue outlook.

Hewlett-Packard (HPQ) agrees to acquire Mercury Interactive ((MERQ.PK)) for $52.00 per share cash, or an enterprise value of approximately $4.5 billion, which is net of existing cash and debt. (AMZN) posts 5 cents vs. 12 cents second quarter earnings per share (EPS) as higher operating costs offset a 22% sales rise. It expects third quarter revenue to grow 17%-25% vs. a year-ago.

Choice Hotels (CHH) posted lower-than-expected 36 cents vs. 32 cents second quarter EPS on a 15% revenue rise. Te company sees 46 cents third-quarter EPS, and $1.45 for all of 2006; it also set a 5.1 million share buyback. S&P keeps hold. Bear Stearns cuts to underperform from peer perform.

General Motors (GM) posts $5.62 second quarter loss vs. $1.75 loss (including items) on a 12% revenue rise. It raises its 2006 structural cost saving target to $9 billion.

Glaxosmithkline (GSK) posts 12% higher second quarter pretax profit on a 10% rise in pharmaceutical sales. It raises its 2006 EPS growth outlook to about 12%.

Sun Microsystems (SUNW) posts 9 cents fourth quarter loss vs. a penny EPS (GAAP) despite a 29% revenue rise.

Chubb (CB) posts $1.35 vs. $1.14 second quarter operating EPS on a 35% rise in underwriting income. It raises 2006 operating EPS guidance to $4.90-$5.10.

Stanley Works (SWK) posts 90 cents vs. 77 cents second quarter EPS from continuing operations on a 3% organic sales rise. It sees third quarter organic sales growth of about 4%-6% and EPS at $1.03-$1.07 (including items).

Martha Stewart (MSO) posts a penny second quarter loss from continuing operations vs. 65 cents loss on a 47% revenue rise. It sees $55 million to $57 million revenue, approves a special one times dividend of 50 cents, and names Howard Hochhauser CFO.

Flextronics (FLEX) posts 14 cents vs. 10 cents first quarter EPS on a 5% sales rise. It sees 19 cents to 21 cents second quarter EPS on revenue of $4.7 billion to $4.9 billion and fiscal year 2007 EPS of 80 cents on revenue of $19 billion.

Monster Worldwide (MNST) posts 31 cents second quarter EPS from continuing operations on a 36% revenue rise. It sees 32 cents to 33 cents third quarter EPS from continuing operations and $1.26-$1.30 in 2006.

RF Micro Devices (RFMD) posts 7 cents first quarter EPS vs. a penny loss (GAAP) on a 50% revenue rise. It sees 8 cents to 9 cents second quarter EPS on revenue of $240 million to $250 million.

Xilinx (XLNX) posts 24 cents vs. 21 cents first quarter GAAP EPS (including stock expense) on a 19% revenue rise and 2% sequential revenue rise. It expects second quarter revenue to be flat to down 5% sequentially.

Lucent (LU) posts 2 cents vs. 7 cents third quarter GAAP EPS on a 12% revenue drop; revenue fell 4% sequentially. It cites an impending shift in spending as North American customers begin to move to next-generation mobile high-speed data solutions.

Foundry Networks (FDRY) posts second quarter revenue of $108.4 million and a 4.9% sequential decline. Because of a previously announced special committee's investigation of its issuance of stock option grants, it does not include EPS in today's announcement.

BE Aerospace (BEAV) posts 24 cents vs. 14 cents second quarter EPS on a 31% sales rise. It raises 2006 EPS guidance by 2 cents to $1.19, exclusive of debt prepayment charge.