IBM, RHT, HSBC, BLMN, FDC & more

Check out the companies making headlines before the bell:

IBM – IBM is buying Linux software distributor Red Hat for about $33 billion in cash, or $190 per share, in its biggest ever acquisition. That represents a nearly 63 percent premium over Red Hat’s Friday closing price of $116.68.

HSBC – HSBC reported profit of $5.9 billion for the third quarter, higher than the $5.6 billion that analysts were expecting. Europe’s biggest bank saw its bottom line benefit from stronger business in Asia, as well as cost controls.

Bloomin’ Brands – The restaurant chain reported adjusted quarterly profit of 10 cents per share, 1 cent a share above estimates. Revenue was in line with expectations. The parent of Outback Steakhouse and other restaurant chains saw comparable sales rise 2.9 percent, and it raised its full-year forecast.

First Data – The payment processing company fell 2 cents a share short of Street forecasts, with revenue above forecasts. First Data cut its full-year earnings forecast, due to the negative impact of currency fluctuations.

Booz Allen Hamilton – The technology consulting firm reported adjusted quarterly earnings of 68 cents per share, 9 cents a share above Street forecasts. Booz Allen’s revenue fell slightly short of estimates, however, but the company raised its full-year earnings forecast above current analysts’ estimates.

General Electric – GE shareholders are bracing for a dividend cut or suspension when GE reports quarterly earnings Tuesday morning, according to analysts who spoke to The Wall Street Journal. The paper said investors would actually take that as a good sign in that it would help GE conserve cash and use it to fix its businesses.

Denbury Resources – Denbury is buying fellow oil and gas producer Penn Virginia in a cash-and-stock deal worth $1.7 billion, including debt.

Tesla – Tesla shareholder Baillie Gifford & Co. said it would be willing to inject more cash into the automaker, according to a partner in the investment firm quoted by the Times of London. Baillie Gifford is the third largest Tesla shareholder with a 7.72 percent stake.

Ford Motor – Ford was upgraded to “buy” from “neutral” at Goldman Sachs, which also increased its price target on the automaker’s shares to $12 from $9. Goldman said Ford would see an earnings trough in 2019, followed by improvement based on refreshments in the product line as well as cost improvements.

Apple – Apple is $7 billion behind in its royalty payments to Qualcomm, according to the chipmaker. Qualcomm made its claim in a court hearing on Friday, the latest in a series of legal actions between the two companies. Separately, Jefferies initiated coverage of Apple with a “buy” rating, saying the iPhone will serve as the foundation for “massive” recurring services revenue.

Ralph Lauren – Ralph Lauren was rated “buy” in new coverage at Deutsche Bank, which said the apparel maker is in the early stages of a brand turnaround with an improvement in profitability already apparent.

Electronic Arts – Electronic Arts was downgraded to “sector weight” from “overweight” at KeyBanc, citing diminished confidence in the videogame maker’s product pipeline and the expectation of downward revisions in earnings estimates.

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