Stocks to Watch: Best Buy, Illumina (Update 2)
NEW YORK -- Best Buy(BBY) , the electronics retailer, reported fiscal fourth-quarter profit of $2.47 a share, excluding items, on revenue of $16.73 billion..
Analysts were expecting profit of $2.16 a share on revenue of $17.2 billion.
Same-store sales dipped 2.4%; Wall Street was expecting a decline of 0.6%.
UBS kept a neutral rating on Best Buy ahead of the report on Wednesday but lifted its price target to $27 from $25, speaking of the company's cost reduction plans.
Best Buy said it is planning $800 million in cost-cutting programs by fiscal 2015, including about $250 million in fiscal 2013. It will close 50 U.S. big-box stores in 2013. At the same time, the company will continue to accelerate key initiatives, including growing its business in China.
Shares were popping 5.9% to $28.19 in premarket trading Thursday.
Swiss pharmaceutical company Roche increased its unsolicited offer for Illumina(ILMN) to $51 a share, valuing the U.S. diagnostics company at more than $6.5 billion.
Roche's previous offer of $44.50 a share was rejected by Illumina's board as being too low.
Roche, in a statement Thursday, said "based on our discussions with Illumina shareholders we have seen interest to accelerate the takeover process."
Illumina told its shareholders to "take no action at this time."
Shares of Illumina were gaining 2.6% at $51.15 in premarket trading Thursday.
Research In Motion(RIMM) , the troubled BlackBerry maker, is expected by analysts to report quarterly earnings of 82 cents a share, which is below the company's own expectation for earnings of 85 cents to 90 cents a share.
RIM is working toward the release of its next-generation handset, the BlackBerry 10, in the second half of this year.