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Tickers in this Article: TMTA, BIDU, GOOG, HRB, MORN
Big Winners

Transmeta Corp. (TMTA) traded at prices as much as 28% higher than last week's close during Friday's session, its shares jumping up sharply after the microprocessor company reported a much smaller-than-expected operating loss for the quarter. The company incurred a net loss for Q4 of $2.1M ($0.01 per share), an approximately ten-fold better performance than last year's fourth-quarter loss of $28.1M ($0.15 per share). Gross margins were significantly better as well, up to 47% for the quarter compared to a negative 13% gross margin for the same quarter last year. Going forward, the company projects a much better 2006 fiscal year, forecasting a net loss of only 6 to 9 cents for the full year.

ADRs of Chinese internet firm Baidu.com Inc. (BIDU) ended the week 5.6% higher than the previous week's closing price of $50.06. The shares had jumped up to as high as $61.50, or 22.9% above last week's close, following release of the company's fourth-quarter earnings results. BIDU earned 9 cents per share for the quarter, beating Wall Street estimates by a full two pennies. Analyst estimates for the full year 2006 peg Baidu to earn $0.47 per share, while 2007 estimates are for $0.85 per share. While these numbers are definitely optimistic, concern still exists over looming competition from Google (GOOG), who is still growing by leaps and bounds.


Big Losers

Things were not nearly so rosy over at H&R Block (HRB), however, as shares of the tax and financial services firm dropped almost 9% after America's largest tax preparer issued a press release stating that it, in fact, had quite a mess on its hands with its own taxes. The company will soon be restating earnings going back to 2004, and during Friday trading the stock dropped past its previous 52-week low of $23.01. As the company delves into settling its $32M tax oversight, it also is forced to enter damage-control mode, as public perception of such a tax error by the leading individual tax preparer is sure to be a public relations nightmare.

Morningstar Inc. (MORN) released its fourth-quarter numbers as well, managing a solid net income for the quarter of $10.1M ($0.22 per share), up strongly from a 3 cents per share loss for the same quarter last year. However, this news was not enough to satiate the market's expectations for the company, sending the shares down 6% during Friday's session to close at an even $40.00 per share. The company reported a lower-than-expected growth rate for its international divisions and admitted that its online retirement planning advice products have been received with less demand than initially expected by the industry. The primary analyst covering the stock from DE Investment Research issued a downgrade as well, lowering MORN's rating from Buy to Neutral.

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