U.S. Movers: Discover Financial, FedEx, InterDigital, Oracle, Walgreen

Mukesh Buch
19 Jun, 2012
New York City

Discover Financial second quarter dropped 11% to $537 million and FedEx fourth quarter net slides 1% to $550 million. InterDigital sells patent applications to Intel for $375 million in cash. Oracle fourth quarter net soared 8% to $3.45 billion.

[R]10:40 AM New York – Discover Financial second quarter dropped 11% to $537 million and FedEx fourth quarter net slides 1% to $550 million. InterDigital sells patent applications to Intel for $375 million in cash. Oracle fourth quarter net soared 8% to $3.45 billion. Walgreen stake 45% in Alliance Boots deal valued $6.7 billion.[/R]

Barnes & Noble, Inc. ((BKS)) dropped 5.5% or 84 cents to $14.44 after the reported total revenues in the fourth quarter ending on April 28 edged up 0.4% to $1.38 billion compared to $1.37 billion in the same period last year. Net narrowed in the quarter slides 1% to $57.7 million or $1.08 per diluted share compared to $59.4 million or $1.04 per share a year ago.

Celanese Corporation ((CE)) gained 3.1% or $1.20 to $39.19 after the intermediate chemical producer said will increase the price of acetate tow for core grade items by 8% to 10% (FOB plant basis) and increasing of rates are effective from July 1.

Discover Financial Services ((DFS)) rose 1.7% or 58 cents to $33.41 after the financial holding company reported net interest income in the second quarter ending in May declined 11% to $1.32 billion compared to $1.19 billion in the same period last year. Net income in the quarter dropped 11% to $537 million or $1.0 per diluted share compared to $600 million or $1.09 per share a year ago earlier.

FedEx Corporation ((FDX)) increased 2.3% or $2.09 to $90.60 after the holding company reported total revenues in the fourth quarter ending in May grew 4% to $11.0 billion compared to $10.6 billion in the same period last year. Net income in the quarter slides 1% to $550 million or $1.73 per diluted share compared to $558 million or $1.75 per share a year ago.

For fiscal year 2012 total revenues increased 4% to $42.7 billion compared to $39.3 billion in the last year. Net income in the year surged 17% to $2.3 billion or $6.41 per diluted share compared to $1.45 billion or $4.57 per share a year ago earlier.

FedEx expects first quarter earnings to be in the range of $1.45 to $1.60 per diluted share and for fiscal 2013 it would be between $6.90 and $7.40 per diluted share.

IHS Inc. ((IHS)) shrank 5.1% or $5.42 to $100.42 after the analytical information provider reported total revenues in the second quarter ending in May soared 20% to $387.2 million compared to $323.1 million in the same period last year. Net income in the quarter increased 10.8% to $44.2 million or 66 cents per diluted share compared to $39.9 million or 61 cents per share a year ago earlier.

IHS is raised guidance for the year ending November 2012, revenue in the range of $1.53 to $1.58 billion and adjusted earnings between $3.88 and $4.01.

InterDigital, Inc. ((IDCC)) slipped 3% or 89 cents to $28.19 after the wireless communication technology provider said its certain subsidiaries had signed agreement to sell approx 1,700 patents and patent applications to Intel for $375 million in cash. The transaction expects to be complete in the third quarter.

Jefferies Group, Inc. ((JEF)) gained 3.2% or 42 cents to $13.47 after the securities and investment reported net interest income in the second quarter ending in May fell 2% to $711 million compared to $727.2 million in the same period last year. Net earnings in the quarter declined 21% to $63.5 million or 28 cents per diluted share compared to $80.6 million or 36 cents per share a year ago earlier.

Oracle Corporation ((ORCL)) increased 2.3% or 63 cents to $27.75 after the software company reported total revenues in the fourth quarter ending in May rose 1% to $10.93 billion compared to $10.78 billion in the same period last year. Net income in the quarter soared 8% to $3.45 billion or 69 cents per diluted share compared to $3.21 billion or 62 cents per share a year ago.

For fiscal 2012 total revenues grew 4% to $37.12 billion compared to $35.62 billion in the last year. Net income in the year surged 17% to $10.0 billion or $1.96 per diluted share compared to $8.55 billion or $1.67 per share a year ago earlier.

Walgreen Co. ((WAG)) slumped 6% or $1.93 to $30.03 after the drugstore chain reported total revenues in the third quarter ending in May fell 3.4% to $17.8 billion compared to $18.4 billion in the same period last year. Comparable stores sales decreased 9.9%. Net earnings in the quarter shrank 11% to $537 million or 62 cents per diluted share compared to $603 million or 65 cents per share a year ago.

Total same store sales fell 6.6% in the quarter and front of the store same stores decreased 0.9% and same store traffic declined 2.6% but average basket size increased 1.7%. Prescription sales, which are 65% of total sales declined 6.6% and same store prescription sales plunged 9.9%.

Walgreens agreed to pay $6.7 billion to acquire 45% of Alliance Boots GmbH for $6.7 billion of which $4 billion in cash and 83.4 million in shares. Walgreen has the option to buy remaining stake of 55% in three years. The transaction is expected to by September 1.