Stocks to watch: RIM, Constellation Brands
The BlackBerry maker continues to disappoint, and the alcoholic beverage company buys the remaining of Crown Imports.
By Joseph Woelfel, TheStreet.com
Research In Motion (RIMM) disappointed Wall Street Thursday with its fiscal first-quarter results. The BlackBerry maker reported a much wider-than-anticipated loss, pushed back the launch of the BlackBerry 10 until the first calendar quarter of 2013 and announced plans to lay off 5,000 employees, roughly 30% of its work force. Shares of Research in Motion fell 15.12% in premarket trading Friday to $7.72
Nike (NKE) posted fiscal fourth-quarter earnings on Thursday that missed analysts' expectations. The sneaker maker reported a profit of $549 million, or $1.17 a share, on revenue of $6.47 billion for the three months ended in May; analysts were expecting earnings of $1.37 a share on revenue of $6.51 billion.
The company attributed the year-over-year decline in earnings to lower gross margin, higher SG&A spending, a higher effective tax rate and costs related to restructuring operations in western Europe. Shares of Nike fell 11.56% in premarket trading Friday to $85.69.
Anheuser-Busch InBev (BUD), the world's largest brewer, confirmed Friday that it would buy the rest of Mexican brewer Grupo Modelo that it doesn't already own for $20.1 billion.
Meanwhile, Constellation Brands (STZ) said it would buy the remaining 50% of Crown Imports that it doesn't already own from Anheuser-Busch for $1.85 billion following Anheuser-Busch's deal to buy Modelo. Constellation and Modelo owned Crown as a joint venture. Constellation Brands' stock was climbing 4.46% in premarket trading Friday to $22.73.
Retailer Finish Line (FINL) reported first-quarter net income Friday of $12.3 million, or 24 cents a share, down from year-earlier earnings of $16.4 million, or 30 cents. Analysts, on average, anticipated earnings of 23 cents a share.
The company forecast an increase in earnings per share for the next fiscal year of about 7; it earned $1.53 a share in fiscal 2012. Previously, Finish Line projected earnings per share growth would be in the mid-single digits.
KB Home (KBH) is expected by analysts Friday to report a second-quarter loss of 35 cents a share on sales of $294.8 million.
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Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
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