In the news this morning, the SEC is investigating stock sales by the CEO of Big Lots, Pandora and Altera release weak guidance and Freeport-McMoRan looks to get back into the energy business.
The Securities and Exchange Commission is investigating the sale of $10 million worth of the company's stock by Steven Fishman, Big Lots' (BIG) CEO. The same came ahead of the company's announcement that sales had slowed in the first quarter, which sent the stock sharply lower.
Online music-streaming service Pandora (P) reported adjusted third-quarter EPS of 5 cents per share, topping estimates for 1 cent per share. Sales rose to $120 million, compared to estimates for $117.1 million. Looking forward, the company said it expects to report a fourth-quarter loss of between 6 cents and 9 cents per share on an adjusted basis. Sales are expected to be $120 million to $123 million. Analysts had been expecting 1 cent per share on sales of $130.2 million. The company said advertisers are holding back spending ahead of the fiscal cliff.
Freeport-McMoRan Copper & Gold
Freeport-McMoRan (FCX) is reportedly considering an acquisition of McMoRan Exploration (MMR) and a large oil and gas company according to reports in The Financial Times. Freeport is reportedly looking to get back to its energy producing roots.
UPDATE: Freeport announced plans to buy bith McMoRan Exploration and Plains Exploration and Production (PXP) for $9 billion in cash and stock. Freeport will pay $25 in cash and 0.6531 shares of common stock for each share of Plains, or about $50 per share of PXP. The company will pay $14.75 in cash, or $2.1 billion, for McMoran.
Netflix (NFLX) jumped Tuesday after the company reached a deal with Disney (DIS) that gives Netflix the exclusive rights to first-run Disney movies in the U.S. The deal doesn't start until 2016, but covers theatrically released movies from all of the movie studios owned by Disney.
The chip maker said late Tuesday it expects fourth-quarter sales to fall by 8 to 10 percent from the third quarter, which would result in sales of about $450.5 million, analysts had expected revenue of $455.2 million.
The banking giant announced plans to cut 11,000 jobs and close some branches. The moves will result in a $1.1 billion charge in the fourth quarter and $100 million in related charges in the first half of 2013. The company said it will save $900 million in 2013 and $1.1 billion starting in 2014. Most of the jobs cuts, 6,200, will come from Citigroup's (C) global consumer banking operations.