US HOT STOCKS: Netflix, Ebay, Qualcomm Active In Late Trading

21st Jul 2010 22:25

U.S. stocks traded lower Wednesday as the Dow Jones Industrial Average lost 1.1% to 10121, the S&P 500 slid 1.3% to 1070 and the Nasdaq Composite fell 1.6% to 2187. Among the companies whose shares are actively trading in the after-hours session are Netflix Inc. (NFLX), eBay Inc. (EBAY) and Qualcomm Inc. (QCOM). Netflix's second-quarter earnings jumped 34%, beating its expectations, but key measures closely watched by investors faltered. Shares of the online video-rental company were down 8.9% at $109 in recent after-hours trading as subscriber-acquisition costs, a metric closely watched by Netflix investors, rose 2.1%. The churn rate--a measure of customer cancellations and free subscribers--fell to 4% from 4.5%. EBay's second-quarter earnings rose 26%, although the e-commerce operator reined in its guidance because of the stronger dollar. Still, shares were up 3.8% at $20.94 after hours as the company topped expectations. Qualcomm's fiscal third-quarter profit rose 4.1% as shipments of its mobile station modem chips increased 10% to a record 103 million units. Shares rose 4.9% to $37.95 in after-hours trading as the world's largest wireless-chip maker's results topped its forecast. The company increased its year earnings forecast again, and revenue is seen at the high end of prior estimates. Western Digital Corp.'s (WDC) fiscal fourth-quarter profit climbed 35% on double-digit growth in sales and shipments despite demand being softer than expected. Shares fell 2.6% to $29.40 in after-hours trading as the disk-drive maker's results fell short of Wall Street's expectations. Starbucks Corp.'s (SBUX) fiscal third-quarter earnings jumped 37% on a strong rebound in same-store sales, but the coffee giant's expectations for the next year and a half weren't as optimistic as analysts' views, sending shares down 2.7% to $24.50 after hours. Intuitive Surgical Inc.'s (ISRG) second-quarter profit jumped 42%, beating Wall Street's expectations, on strong sales and higher usage of its surgical-robot systems. Despite the strong results, the company's shares fell 6.7% to $295 in after-hours trading. Total System Services Inc.'s (TSS) second-quarter profit fell 7% on a decline in the payment-services provider's North America revenue. Still, results topped analysts' expectations and shares recently traded up 1.7% to $14.40 after-hours. Xilinx Inc.'s (XLNX) fiscal first-quarter profit more than quadrupled as sales set a record for the third quarter in a row. Shares rose 1.1% to $28.11 in after-hours trading as the programmable-chip maker's results topped Wall Street's expectations and it projected sales higher than Street expectations. Uroplasty Inc. (UPI) plans to sell shares to raise funds for the ongoing commercialization of its Urgent PC system for treatment of overactive bladders and to pay for additional clinical trials to expand the uses for its products. Shares dropped 7.1% to $3.51 in after-hours trading, although the medical-device company did not say how many shares it plans to sell. Regular Session Movers Shares of Yahoo Inc. (YHOO, $13.91, -$1.29, -8.49%) took a hit Wednesday as investors expressed displeasure with the Internet giant's weak second-quarter revenue and guidance and worried the company's long-running turnaround effort still isn't having much impact. Morgan Stanley's (MS, $26.80, +$1.58, +6.26%) second-quarter profit soared as the bank rebounded from a year-earlier quarter marred by merger charges and the repayment of government funds. The earnings solidly beat analysts' expectations. Boston Scientific Corp.'s (BSX, $5.97, -$0.30, -4.78%) second-quarter profit slid 38% as the medical-device maker posted double-digit sales declines for defibrillators and stents, as well as lower margins. The company lifted its full-year earnings target. Elsewhere in the medical-device sector, Stryker Corp.'s (SYK, $46.75, -$4.54, -8.85%) second-quarter profit grew 9.5% on an increase in sales of orthopedic implants and its MedSurg equipment, although revenue growth for the quarter fell short of Wall Street's expectations. Stryker's replacement hip and knee sales were soft, raising fresh questions about a sector that appeared on the mend. The Stryker report comes after Johnson & Johnson (JNJ, $57.12, -$1.46, -2.49%) on Tuesday indicated that prices remain under pressure. Signals of ongoing struggles from these heavy hitters weighed on other medical-device companies. Among the decliners were Zimmer Holdings Inc. (ZMH, $52.97, -$2.18, -3.95%), which reports early Thursday. Smith & Nephew Plc (SNN, $42.41, -$2.82, -6.23%) and Wright Medical Group Inc. (WMGI, $15.18, -$0.80, -5.01%) also declined. Meanwhile, J&J and Stryker's comments that they continued to show pressure in the market for spinal implants appeared to weigh on Medtronic Inc. (MDT, $36.22, -$1.20, -3.21%), NuVasive Inc. (NUVA, $31.60, -$1.60, -4.82%) and Orthofix International NV (OFIX, $26.63, -$3.14, -10.55%). Apple Inc.'s (AAPL, $254.24, +$2.35, +0.93%) fiscal third-quarter profit jumped 78% as the company posted stout initial sales of its multimedia iPad device and the latest version of its popular smartphone, the iPhone 4, as well as higher Macintosh computer sales. A main driver of growth for the quarter was the company's popular iPhone, which sold 8.4 million units, up 61%. Apple also reported it sold 3.27 million iPads, which became available in early April. Wells Fargo & Co.'s (WFC, $26.06, +$0.15, +0.58%) second-quarter earnings rose 12%, beating analysts' estimates, as the company's credit-loss provisions declined sharply. Cytec Industries Inc. (CYT, $49.86, +$7.07, +16.52%) reported second-quarter earnings more than doubled Wall Street's expectations on revenue that handily topped as well, as the specialty chemical company returned to a profit on increased volumes. (MORE TO FOLLOW) Dow Jones Newswires July 21, 2010 17:25 ET (21:25 GMT)