Stocks to Watch: GE, BHI, SLB & More
Senior Producer, CNBC
Take a look at some of Friday's morning movers:
General Electric - The Dow Jones Industrial Average component earned $0.38 per share for the second quarter, one cent above estimates. The company's widely watched GE Capital unit earned $2.1 billion during the quarter, up 31 percent from a year earlier.
Baker Hughes - The oilfield services company earned $1 per share for the second quarter, well above estimates of $0.77, as it saw increased drilling activity in international markets.
Schlumberger - The world's largest oilfield services firm earned $1.05 per share for the second quarter, five cents above estimates, with revenues essentially in line. Like rival Baker Hughes , it saw increased business in non-U.S. markets and a rebound in deepwater drilling activity.
SunTrust Banks - The banking company earned $0.50 per share for the second quarter, six cents above estimates. Higher revenue and a decline in credit loss provisions helped boost the bank's bottom line.
Xerox - Xerox matched Wall Street estimates with profit of $0.26 per share, but the company also cut its full-year estimate because of declining sales and shrinking profit margins.
Microsoft - Microsoft reported fiscal fourth-quarter profit of $0.67 per share, five cents above estimates. That number excludes a previously announced writedown for the value of its online advertising unit.
Google - Google reported second-quarter profit of $10.12 per share, eight cents above estimates. Revenue was very slightly short of estimates, but it was 21 percent ahead of a year ago.
Chipotle Mexican Grill - The restaurant chain earned $2.56 per share for the second quarter, versus estimates of $2.30. But its revenue came up short of analyst forecasts, as did an 8 percent gain in same-store sales. The company said sales slowed in late April and that the trend continued through May and June. Goldman Sachs has now removed the stock from its "Conviction Buy List."
Intuitive Surgical - Intuitive earned $3.75 per share for the second quarter, beating estimates by 19 cents. Revenue was also ahead of analysts' forecasts. The medical device maker did, however, warn about the ongoing negative impact of Europe’s economic crisis, as well as a decline in prostate surgeries that use its surgical equipment.
Advanced Micro Devices - The chipmaker fell a penny short of consensus in reporting second-quarter profit of $0.06 per share, with revenue in line with estimates. AMD, like its rivals, is battling global economic woes and a consumer shift towards non-PC electronic devices.
Pfizer - The drugmaker has won a court ruling upholding the validity of its patents for its best-selling pain medication Lyrica. That allows Pfizer to maintain U.S. marketing exclusivity for the drug through 2018. Generic manufacturers who were seeking to sell their own versions must now wait until that time.
Citigroup, Morgan Stanley - The banks disagree on the value of their jointly owned Morgan Stanley Smith Barney brokerage unit. The two exchanged appraisals as Morgan Stanley moves ahead with plans to add another 14 percent to its current 51 percent stake. A third party will conduct an appraisal, which could result in significant non-cash third quarter charges for Citi, which values the unit 60 percent higher than Morgan Stanley does.
Freescale Semiconductor - The company lost $0.14 per share for its second quarter, compared to analysts' expectations of a $0.02 per share profit. The chipmaker did see higher profit margins but experienced a drop in revenue.
Apple - Apple debuted its latest iPad in China today, after recently settling a trademark lawsuit with China’s ProView over the iPad name.
Two initial public offerings of note on today’s calendar: Palo Alto Networks (which will trade under the symbol "PANW") priced its IPO at $42 per share, above its recently raised range of $38 to $40 a share, while Kayak Software (which will trade under the symbol "KYAK") priced its IPO at $26, above the projected range of $22 to $25 a share. One IPO that won’t be happening — at least for now — is legendary guitar maker Fender, which has withdrawn its offering due to unfavorable market and economic conditions.
Viacom, DirecTV - The two sides have settled a fee dispute which kept Viacom's networks off DirecTV for more than a week. Financial terms of the settlement weren't disclosed.
SanDisk - Jefferies has repeated a "buy" recommendation on the maker of flash memory chips, after it beat estimates with its second quarter earnings. It's also upbeat on future prospects, as new products come out with SanDisk chips and solid sate drives embedded.
Morgan Stanley - Analyst Mike Mayo has upgraded Morgan Stanley stock by two notches to "outperform" from "underpeform." The recommendation follows Morgan Stanley's second-quarter earnings, which fell short of Street estimates, and a subsequent 5 percent drop in the stock.
eBay - JPMorgan Chase has upgraded the stock to "overweight" from "neutral," saying eBay is becoming an increasingly important partner for retailers across all three of its segments.
Verizon Communications - Credit Suisse has cut its rating on the stock to "neutral" on a valuation basis after a bullish run.
—By CNBC’s Peter Schacknow
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