Digest: Regal's earnings estimates reduced
EmptyWedbush Morgan Securities analyst William Kidd on Tuesday lowered his second-quarter earnings estimates for movie theater operator Regal Entertainment Group, citing "a weaker-than-expected summer boxoffice," which has seen "only modest gains." About next year, Kidd said: "Visibility is still hazy, but based on the announced films so far, we're still modeling a flat 2008." The analyst nonetheless maintained his "buy" rating and $24 price target on the stock. Regal shares closed fractionally lower at $21.90.
Shares of Activision Inc. rose 4.2% on Tuesday after the video game maker said that its fiscal first-quarter financials should exceed expectations after it shipped more than 8 million games -- mainly titles tied to big Hollywood franchises -- in the period. The company said it shipped more than 4 million copies of its "Spider-Man 3" title, 2 million "Shrek the Third" games, about 1 million copies of "Transformers: The Game" and more than 1 million "Guitar Hero II" games. Activision closed at $19.17. The shares have traded from $12.53-$21.43 during the past year.
Shares of Apple Inc. hit all-time highs Tuesday after an analyst report Monday suggested that the firm could soon launch a cheaper iPhone model based on its iPod Nano. While the first version of the iPhone, which went on sale June 29, costs $499-$599, the future version could retail for $300 or less, but have limited functionality, JPMorgan analyst Kevin Chang said. He cited a patent that Apple filed in November. Nano models cost $199-$249 depending on the amount of memory. Apple shares rose as high as $134.50 on Tuesday before closing up 1.6% at $132.35. During the past year, the stock has traded as low as $65.12.