NEW YORK (CNN/Money) -
News from Oracle, MGM and Callaway Golf moved their stock after the bell, ahead of the housing and industrial production data to be released Wednesday.
Oracle Corp. (ORCL: Research, Estimates) posted a higher quarterly profit Tuesday, driven by more sales of its flagship database software amid improved corporate spending, with net income hitting $990 million, or 19 cents a share, from $858 million a year earlier, beating analysts' forecasts by a cent.
But shares dropped 2.4 percent in after-hours trade on Inet, as investors expressed worries over the company's unresolved hostile takeover battle for rival PeopleSoft. Despite excellent earnings, many traders were dismayed that sales had not been higher for new applications business software -- where Oracle competes directly with PeopleSoft. (PSFT: Research, Estimates)
Callaway Golf (ELY: Research, Estimates) plummeted 20.4 percent in after-hours trade on Inet after the company sharply trimmed its second-quarter revenue and earnings forecasts on weak sales of titanium golf clubs, a decline in Japanese business and a bigger-than-expected loss in its Top-Flite line.
The company said late Tuesday it sees second-quarter net sales of $290 million to $295 million, and earnings at 10 to 14 cents a share. According to Reuters Estimates, analysts had expected quarterly earnings on average of 60 cents a share.
Red Hat (RHAT: Research, Estimates) shares rose nearly 1 percent after the bell on Inet following a company announcement forecasting better-than-expected first-quarter profits.
In active trade Tuesday, shares in the leading Linux distributor slipped to a 12-week low on the Nasdaq in the first trading session since the company's chief financial officer, Kevin Thompson, said he would quit.
On Wednesday, Bear Stearns, (BSC: Research, Estimates) electronics retailer Best Buy, (BBY: Research, Estimates) Goodyear Tire (GT: Research, Estimates) and construction services company Lennar Corp. (LEN: Research, Estimates) will all report quarterly earnings.
MGM Mirage's board of directors has backed a management plan to buy Mandalay Resort Group for $4.8 billion, a source close to the situation said late in the day Tuesday.
Mandalay's board met Tuesday afternoon to consider the deal, which would create the largest casino company in the world. If Mandalay approves the takeover, the companies will make a formal announcement Wednesday morning, and the agreement will have to be approved by state and federal regulators.
A Food and Drug Administration panel voted 5-2 to recommend Cyberonics' VNS Therapy for use in chronically depressed patients. VNS Therapy, which is surgically implanted to deliver electrical pulses to the brain, is already cleared for use in treating epilepsy.
Shares in Cyberonics (CYBX: Research, Estimates) were halted earlier Tuesday ahead of the panel's decision.
And Santarus Inc. (SNTS: Research, Estimates) shares jumped 34.4 percent on Inet after Tuesday's closing bell on news that the FDA approved the specialty pharmaceutical company's powder form of AstraZeneca Plc's Prilosec heartburn medicine.
The FDA approved the immediate release of a 20-milligram prescription form of the drug, called Rapinex, for treating heartburn and other symptoms of gastric reflux disease.
Hollinger International's (HLR: Research, Estimates) interim chief executive said he hopes to choose a winner this week from three $1.1 billion-plus offers for the company's Telegraph newspaper.
Gordon Paris -- who took over from ousted former chief Conrad Black -- will weigh bids for Britain's best-selling paper from Britain's Barclay brothers, venture capital firm 3i with U.S. private equity house Veronis Suhler Stevenson, and from a consortium of The Daily Mail and buyout firm CVC Capital Partners.
But Hollinger stock sank 6.3 percent in after-hours trading on Inet, following news that another of its newspapers, The Chicago Sun-Times, had overstated its circulation figures, uncovered amid an ongoing internal probe.
The Census Bureau of the Department of Commerce will release Wednesday its figures for the number of homes on which new construction began in May and for the number of new building permits issued that month.
Briefing.com forecasts 1.98 million building starts and 1.965 million permits issued.
Analysts say that the permits in excess of starts in April are a reliable indicator of brisk May home sales, but the interest rate sensitive sector may be slowing. The U.S. housing market index fell 2 points to 67 in June, the National Association of Home Builders announced Tuesday. An index reading of greater than 50 means that more builders view sales conditions as good, rather than poor.
The drop in the housing market index -- a gauge of builder sentiment about sales and buyer traffic -- comes amid higher mortgage rates that have increased monthly borrowing costs for homebuyers.
The Industrial Production index for May, a fixed measure of the physical output of U.S. factories, mines and utilities, is also due out Wednesday.
Briefing.com forecasts that industrial production will rise 0.8 percent with 77.5 percent capacity utilization in order to match the strong 0.8 percent gain posted in April.
Analysts say industrial production is strengthening to meet increased demand, but pricing pressures are tempered by the fact that capacity usage remains low.
-- from staff and wire reports