Goldman Beats Expectations; Rebate Checks Boost Best Buy; Hershey Looking Long Term; InBev's CEO: Take it or Leave it; Canadian Solar Heats up Outlooks; Computer Design Bid; Wal-Mart Pares Back Spending; Crude Dips from High on Supply & Demand
- Goldman Sachs Group Inc. (GS), the world's largest investment bank, said yesterday (Tuesday) that second-quarter earnings fell about 10%, but still managed to beat Wall Street expectations on higher fees from asset management and stock underwriting. The company reported a profit of $2.05 billion, or $4.58 per share, for the three months ended May 30 compared to $2.29 billion, or $4.93 per share a year earlier, the Associated Press reported. Revenue fell 7% to $9.42 billion from $10.18 billion a year earlier.
- Best Buy Co. Inc. (BBY) said first-quarter profits dropped 7% but government rebate checks gave revenues a welcomed boost. Net income dipped to $179 million, or 43 cents per share, from $192 million, or 39 cents per share, the Associated Press reported. Revenue jumped 13% to $8.99 billion from $7.93 billion. Analysts expected $8.57 billion.
- The Hershey Co. (HSY) cut its long-term earnings growth target yesterday (Tuesday) and outlined a plan to boost its brands in the United States with more advertising and product development Reuters reported. The company stood by its 2008 earnings forecast and said it expected profits to increase in 2009.
- Perhaps jaded by the boardroom drama surrounding Google Inc. (GOOG) and Yahoo! Inc.'s (YHOO) merger, InBev NV Chief Executive Carlos Brito said that his company's $65-a-share offer for Anheuser-Busch Companies Inc. (BUD) is the highest it would bid. Brito was in Washington to meet Sen. Claire McCaskill (D-Mo.), who told Brito outright that she would do everything in her power to block the sale, Reuters reported.
- Shares of Canadian Solar Inc. (CSIQ) moved more than 11% yesterday (Tuesday) as the company raised its 2008 revenue outlook from its earlier estimate of $650 million to $750 million to $750 million to $870 million. The company also boosted its output outlook from between 200 megawatts (MW) and 220 MW to 230 MW to 260 MW.
- Cadence Design Systems Inc. (CDNS) made its $1.6 billion cash offer for Mentor Graphics Corp. (MENT) public yesterday (Tuesday), some seven weeks after its initial private bid. Cadence's offer includes $16 per share and taking on $69 million of Mentor's debt, MarketWatch reported.
- Wal-Mart Stores Inc. (WMT) announced yesterday (Tuesday) that it had lowered its capital expenditure forecast for the current fiscal year, Reuters reported. Wal-Mart lowered its forecast for the fiscal year ended Jan. 31, 2009 to $13 billion - $14 billion, down from its previous estimate of $13.5 billion - $15.2 billion as the retail giant cut back on planned supercenter sites.
- Crude oil for July delivery closed at $134.01 a barrel yesterday (Tuesday) on the New York Mercantile Exchange, MarketWatch reported, after having hit a new intraday trading high of $139.89 on Monday. Continued concerns about the effect a weak U.S. economy could have on demand as well as a promise of increased production from Saudi Arabia put downward pressure on prices.