Friday, July 27, 2012

Stocks to Watch: Google, Thomson Reuters, Big Lots

Research In Motion(RIM) shares were diving in premarket trading after a weak sales forecast from the smartphone maker.

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Third-quarter revenue came in "slightly lower" than the $5.3 billion to $5.6 billion the Blackberry maker had forecast and earnings were "at the low to mid point" of its previous forecast, according to an earnings pre-release from the company. RIM, which has already taken a beating from the market as it loses ground to Apple(AAPL) and Google Android phones, said it will miss its full-year earnings target too. The company also said shipments will fall in the next quarter.

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RIM also said it is taking a $360 million after-tax writedown on its PlayBook tablet, which it has had to steeply discount to sell.Shares were lower by 6% to $17.40. RIM shares have already declined 68% this year. Big Lots(BIG), the retailer, beat Wall Street earnings expectations -- excluding a one-time hit due to an acquisition -- and raised its full-year outlook.The retailer earned 6 cents a share in third quarter -- excluding an 11-cent loss due to a Canadian acquisition, earnings were 17 cents. The Wall Street consensus was for earnings of 9 cents a share. Revenue of $1.14 billion was in line with the consensus call for revenue of $1.13 billion. A year ago, the company earned 23 cents a share. The discounter raised its full-year earnings guidance to $2.85 to $2.92 a share, with the higher end ahead of the Wall Street consensus of $2.89. For the fourth quarter, the overstock retailer forecast earnings of $1.59 to $1.66 a share versus a Wall Street consensus of $1.63. Shares of Big Lots were down by close to 7% to $37 in premarket trading. Google (GOOG) is diving deeper into Internet retailing, taking on e-commerce giant Amazon(AMZN), according to a report.Google is in talks with major retailers and shippers about creating a service that would let consumers shop for goods online and receive their orders within a day for a low fee, The Wall Street Journal reported, citing people familiar with the matter.Amazon has been successful with its $79-a-year Amazon Prime program, which offers members free two-day shipping for items on its Web site. Some retailers are interested in signing up for Google's service, said people familiar with the matter, the Journal said. Google has pitched the project to big retailers it has teamed up with in the past, such as Macy's(M) and Gap(GPS). Thomson Reuters (TRI) said CEO Tom Glocer is stepping down from the news and information company.James Smith will become Thomson Reuters' new CEO on Jan. 1. Smith was promoted to chief operating officer in late September.Thomson Reuters has made a series of management changes over the past six months because of the disappointing performance of its markets division, which accounts for more than half of the company's revenue. Zumiez(ZUMZ), the sports apparel retailer topped Wall Street's fiscal third-quarter earnings expectations and gave a solid outlook. Zumiez earned $14.1 million, or 45 cents a share, as total net sales jumped 13.3% from a year earlier to $154 million. Same-store sales rose 6%. Analysts polled by Thomson Reuters were expecting a profit of 42 cents a share on sales of $153.1 million. Avago Technologies(AVGO), the analog semiconductor device maker, forecast a deeper-than-expected sequential decline in revenue for the current quarter. For the fiscal first quarter ending in January, Avago said it expects revenue to decline between 10% and 14% on a sequential basis as it expects "a seasonal slow-down in handsets while the supply chain contraction in our Industrial market continues." That view implies revenue of $535.8 million to 560.7 million for Avago's first quarter, which is below current analysts' expectations of $593.8 million. H&R Block(HRB), the tax preparer, saw its loss in the fiscal second quarter widen from last year.H&R Block posted a loss of $141.7 million, or 47 cents a share. A year earlier, it lost $109 million, or 36 cents. The company usually posts losses during the second quarter because most of its revenue comes during the U.S. tax season. -- Written by Joseph Woelfel>To submit a news tip, send an email to: tips@thestreet.com.Bank Stock Guru Makes 2012 Picks

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