Networking concern 3Com (NASDAQ: COMS), whose colleagues include Cisco Systems, Inc. (NASDAQ: CSCO) and Hewlett-Packard Company (NYSE: HPQ), made an adjusted 10 cents per share in the company's fiscal fourth quarter. Not so great, considering 3Com made an adjusted 9 cents per share one year ago.

In terms of estimates, 3Com did well. The market was expecting 5 cents per share. The analyst community was obviously worried that the recession was going to hamper profit growth more than it did. Of course, who could blame the analysts, right? After all, 3Com did see a better than 8% slide in top-line sales.

Analyst upgrades

• Oppenheimer upgraded Savient Pharmaceuticals (NASDAQ: SVNT) to Perform from Underperform after the FDA's Arthritis Advisory Committee voted 14-1 in favor of approving Krystexxa for gout.
• Banc of America/Merrill upgraded Texas Instruments (NYSE: TXN) to Buy from Underperform and raised its target to $27 from $18 based on expectations that margin expansion will be higher than Street expectations.
• UBS said Nvidia (NASDAQ: NVDA) has limited downside risk given the improved outlook for the graphics processor market and professional solutions business. Shares were upgraded to Neutral from Sell and its target was raised to $11.50 from $8.
• BHP Billiton (NYSE: BHP) was upgraded to Outperform from Neutral at Macquarie.
• Neutral Tandem (NASDAQ: TNDM) was upgraded to Outperform from Neutral at Baird.
• Central Garden & Pet (NASDAQ: CENT) was upgraded to Buy from Neutral at SunTrust.

General Motors Corp. (NYSE: GM) and Chrysler have re-opened merger talks, according to the Wall Street Journal. Cerberus, Chrysler's owner, signaled it was wiling to give up part of its ownership stake in the auto maker. Meanwhile, Chrysler on Wednesday said it is closing all its North American manufacturing plants -- 30 plants -- for at least a month, the most ominous move yet by any carmaker. It is trying to bring output closer in line to plunging demand for new cares and trucks. GM shares decline 5% after The Detroit News said GM denied any merger talks.

The quarter is winding down, and here are some highlights from this past week's earnings coverage from BloggingStocks:

• Air Products & Chemicals Inc. (NYSE: APD) lowered its guidance for the current quarter.
• AutoZone Inc. (NYSE: AZO) missed Q4 earnings estimates despite a modest increase in profits.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported disappointing Q2 results that met analysts' expectations.
• Chevron Corp. (NYSE: CVX) faces earnings declines if the Paulson plan fails, says Jim Cramer
• Circuit City Stores Inc. (NYSE: CC) earnings declines finally led to the ouster of CEO Schoonover.
• Discover Financial Services (NYSE: DFS) beat Q3 expectations despite charges and reserves.
• General Electric Co. (NYSE: GE) lowered its Q3 and full-year forecast due to financial sector woes.
• KB Home (NYSE: KBH) reported a greater-than-expected loss for Q3, and yet shares rose.
• Lennar Corp. (NYSE: LEN) posted significantly smaller Q3 losses on cost cutting.
• McCormick & Co. Inc. (NYSE: MKC) topped Q3 expectations due to the sale of a brand.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q1 results despite a decline in net income.
• Research in Motion Ltd. (NASDAQ: RIMM) posted strong Q2 results accompanied by a weak forecast.
• Rite Aid Corp. (NYSE: RAD) Q2 net loss more than doubled and revenues were flat
• Secure Computing Corp. (NASDAQ: SCUR) missing estimates didn't stop a deal with McAfee (NYSE: MFE).
• 3Com Corp. (NASDAQ: COMS) Q1 results topped both analysts estimates and previous guidance.
• 3M Co. (NYSE: MMM) faces significant earnings declines if the Paulson plan fails, says Jim Cramer.

Also, are analysts' expectations for the the coming year too optimistic?

Upcoming quarterly reports include Circuit City (NYSE: CC), Walgreen (NYSE: WAG), Pepsi Bottling Group (NYSE: PBG), Constellation Brands (NYSE: STZ), Marriott International (NYSE: MAR), Family Dollar Stores (NYSE: FDO).

Visit AOL Money & Finance for more earnings coverage.

Better than expected earnings are driving 3Com Corporation (NASDAQ: COMS) stock today. The lagging networking and router company posted earnings last night of 11 cents non-GAAP EPS on revenue of $342.6 million. First Call estimates were 6 cents EPS on $337.12 million in revenue. The results were above the already raised targets.

3Coms's prior raised guidance from August had been for revenues to come in a range of $335 million to $340 million ($10 million higher than before) with earnings per share of $0.06 to $0.08. 3Com generated $39.3 million in cash from operations. The company's cash and cash equivalents as of August 29 were $541.4 million.

Even more interesting is that on a GAAP basis when benefits of a legal patent settlement are included, 3Com would have actually earned 20 cents EPS. The other translated results were a 7% rise in revenues because of strong sales in Asia lasting longer than 3Com had expected. It also removed 33% from operating expenses.

It is far too soon to say that a turnaround is underway here. But these results are better than even most skeptics would have assumed. The company's small size now with a market capitalization of under $1 billion means that these results will also not translate to strength in the larger competitors.

Shares are up over 5% at $2.21 this morning on active trading volume, but with so few analysts following it and with the stock being relegated to a "cult stock" or a "has been" stock, the verdict is still a long ways off on this one.

Stock futures are somewhat lower this morning, indicating another possible down start on Wall Street as investors await to hear Bernanke and Paulson explain the details of the $700 billion bailout plan. Meanwhile, after oil's record one-day gain Monday, it fell below $108 a barrel Tuesday. And yet another group, this time the National Retail Federation, said holiday sales are expected to grow at the slowest pace in six years for the obvious reasons from housing to job concerns.

Circuit City Stores Inc. (NYSE: CC) CEO Philip J. Schoonover is finally stepping down, no doubt to many releif sighs around the Street. James A. Marcum will replace the resigning CEO and Allen B. King will become Circuit City's new chairman. Shares are actually shooting up over 11% in pre-market trading.

Lennar Corp. (NYSE: LEN) reported a narrower third-quarter loss as it cut costs, but revenue fell by more than half amid a prolonged housing slump. The homebuilder's earnings were below estimates, while revenue beat analysts' number.

Bristol-Myers Squibb Co. (NYSE: BMY) sweetened its offer for ImClone Inc. (NASDAQ: IMCL) to $62 per share. Almost two weeks ago, though, Icahn said he had a $70 per share offer from an undisclosed company. If it wasn't an imaginary bid, it's hard to see why IMCL would go with BMY's offer. In the meantime, however, as the unidetified pharma examines IMCL, the latter keeps delaying giving an answer to BMY. IMCL shares are up over 6.5% to $63.25 in pre-market trading, indicating investors expect BMY's offer to be sweetened again.

Earnings reports continue to dribble in as the quarter winds down. Much of the attention this week will be on homebuilders KB Home (NYSE: KBH) and Lennar Corp. (NYSE: LEN) as investors look for any sign that the housing sector has bottomed (home sales numbers are also due out this week; see below). Analysts surveyed by Thomson Financial anticipate that both companies will report that they narrowed their losses in the most recent quarter.

KB Home's expected $1.25 per share loss, on revenue of $725.5 million, compares to the previous quarter loss of $3.30 and to a year-ago loss of $6.19. However, KB Home's losses in the past few quarters have been deeper than expected. The Los Angeles-based homebuilder's long-range earnings growth forecast is 10.5%, less than the S&P 500. Analysts continue to recommend holding KB Home, and have for at least 120 days. Shares, however, reached a new 52-week high of $31.69 on Friday, and they are up 10.5% year to date.

Lennar is expected to post a loss of 52 cents per share, on revenue of $1.1 billion. That compares to the previous quarter's per-share loss of 76 cents and to a year-ago loss of $3.25. While Lennar also has tended in the past few quarters to miss expectations, the Miami-based company managed a positive surprise in the first quarter of 2008. Lennar's long-range earnings growth forecast is 10.3%, about the same as KB Home's. Analysts also recommend holding Lennar. Friday, shares of Lennar also reached a 52-week high, $27.75, but they are down 6.4% year to date.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Archer Daniels Midland Co. (NYSE: ADM) said Q4 profit plunged, missing analysts' expectations.
• Berkshire Hathaway Inc. (NYSE: BRK.A) posted yet another solid quarter and topped analysts' expectations.
• Cisco Systems Inc. (NASDAQ: CSCO) reported solid results and reaffirmed its revenue guidance.
• General Mills Inc. (NYSE: GIS) performance despite rising commodities costs impressed Jim Cramer.
• Hansen Natural Corp. (NASDAQ: HANS) Q2 earnings surged on popularity of Monster energy drink.
• Humana Inc. (NYSE: HUM) beat Q2 expectations, sending shares of health insurers higher.
• LeapFrog Enterprises Inc. (NYSE: LF) narrowed its Q2 loss, sending shares up near its 52-week high.
• MGM Mirage (NYSE: MGM) Q2 profit tumbled but revenues topped analysts' expectations.
• NetSuite Inc. (NYSE: N) cut its Q2 loss and revenues surged on 400 new customers.
• Orbitz Worldwide Inc. (NYSE: OWW) narrowed its net loss while revenues inched upward.
• Polo Ralph Lauren Corp. (NYSE: RL) easily topped Q1 expectations and raised its full-year guidance.
• Pzena Investment Management Inc's (NYSE: PZN) CEO admits that its Q2 was "awful, just terrible."
• 3Com Corp. (NASDAQ: COMS) raised its Q1 profit and sales forecasts due to gains in China.
• Toyota Motor Corp. (NYSE: TM) net income fell due to the strong yen and rising materials costs.
• Warner Music Group Corp. (NYSE: WMG) reported a smaller-than-expected Q3 net loss.
• World Wrestling Entertainment Inc. (NYSE: WWE) flat year-over-year earnings fell short of estimtates.

3Com Corp. (NASDAQ: COMS) shares are up around 12% so far today after the network equipment maker raised its first-quarter sales and profit forecasts due to gains in China. Not only did 3Com raised guidance, it also raised it above analyst estimates.

3Com, which makes routers, switches and cables for telephone companies, has more than quadrupled sales in China since buying out Huawei's stake in their joint venture H3C last year. China now accounts for almost half the sales at 3Com.

Some may be concerned due to recent reports of China's slower economic growth. But two things are worth mentioning here. First, China's slower GDP growth is still a whopping 9%, down from 11%. And second, telecom infrastructure will likely continue at the same pace.

It isn't surprising, then, that 3Com has raised guidance for both sales and earnings. Specifically, 3Com expects sales in China to be 10% higher than in the previous quarter on stronger sales to Huawei.

Before the bell: Futures higher ahead of data, Fed

Reporting today are the agrichemicals firm Monsanto (NYSE: MON) -- AP Preview, and after the close, software giant Oracle (NASDAQ: ORCL) and Nike (NYSE: NKE).

Reported Tuesday:

• Jabil Circuit (NYSE: JBL) shares are up nearly 11% in premarket trading after the company reported its profit soared as revenue grew and costs declined, topping third-quarter earnings estimates. Merrill Lynch upgraded Jabil from Neutral to Buy.
  
• Red Lobster operator Darden Restaurants (NYSE: DRI) shares are up 1.9% in premarket trading after it also topped quarterly earnings estimates, postinga higher quarterly profit, boosted by the Olive Garden chain, and lower costs that helped raise operating profit at its Red Lobster chain.
• 3COM (NASDAQ: COMS) shares also rose over 6% in after-hours trading after it posted higher than expected revenue.

Meanwhile Pier 1 Imports (NYSE: PIR) shares were also nearly 5% higher in after-hours trading Tuesday after the retailer said it abandoned plans to take over rival home furnishings retailer Cost Plus (NASDAQ: CPWM) for $88 million.

Jabil Circuit (NYSE:JBL) is up over 10% after strong earnings.

3COM (NASDAQ:COMS) is up 6% after posting a robust quarter.

Barclays (NYSE:BCS) is up almost 6% on news it had raised $8.9 billion.

Evergreen Solar (NASDAQ:ESLR) is off 4% after saying it would sell $300 million in notes.

Sonic (NASDAQ:SONC) is down almost 3% on earnings which were under Wall St. forecasts.

Shares may trade differently in the pre-market than in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

U.S. stock futures were lower early Tuesday ahead of the two-day Federal Reserve policy meeting. Meanwhile, oil climbed on supply concerns following further Nigeria unrest and new Iran sanctions and steadied above $137 a barrel. UPS (NYSE: UPS) also gave a profit warning.

U.S. stocks ended almost flat Monday as the market digested some deal activity but remained concerned over oil prices with many investors staying on the sidelines ahead of the Fed meeting. Both the Dow industrials and the S&P 500 ended nearly the same as Friday with the Nasdaq Composite dropping 20 points, or 0.85%.

Economic releases today include June consumer confidence to be reported at 10:00 a.m. EDT. Consumer confidence probably fell this month to the lowest level in more than 15 years, meaning many will try to economize on their spending. The Case-Shiller report on April home prices also is on tap.

Mostly, though, investors will be concerned with the Fed's decision and statement Wednesday. While most on Wall Street believe the Fed will hold rates unchanged this time, many think the Fed will discuss a shift -- to some extent -- to focus more on inflation than the slowdown as well as hint at future rate hikes. The Fed's balancing act between trying to stimulate the economy while keeping inflation under check is becoming a more difficult task by the day.

Monday, June 23

• Walgreens (NYSE: WAG) to report Q3 earnings; conference call at 8:30am.

Tuesday, June 24

• FOMC to hold two-day meeting.
• Jabil Circuits (NYSE: JBL) to report Q3 earnings; conference call at 4:30pm.
• 3Com (NASDAQ: COMS) to report Q4 earnings; conference call at 5:00pm.

Wednesday, June 25

• Second day of two-day FOMC meeting; announcement at 2:15pm.
• Thornburg Mortgage (NYSE: TMA) to discuss valuation and accounting for recent financing transaction at 10:00am.
• Nike (NYSE: NKE) to report Q4 earnings; conference call at 5:00pm.
  
• Oracle (NASDAQ: ORCL) to report Q4 earnings; conference call at 5:00pm.
• Research in Motion (NASDAQ: RIMM) to report Q1 earnings; conference call at 5:00pm.

Thursday, June 26

• PDUFA date for Eli Lilly & Co's (NYSE: LLY) and Daiichi Sankyo's new drug application for Prasugrel.
• Palm Inc (NASDAQ: PALM) to report Q4 earnings; conference call at 4:30pm.
• Micron Technology (NYSE: MU) to report Q3 earnings; conference call at 4:30pm.

Friday, June 27

• PDUFA date for Indevus Pharmaceuticals' (NASDAQ: IDEV) New Drug Application for Nebido for treatment of male hypogonadism.
• PDUFA date for Johnson & Johnson's (NYSE: JNJ) and Eisai Co's (OTC: ESALY) Aciphex.
  

The Commerce Department's Q4-2007 final revision for GDP came in at +0.6%, but that was in-line and the data is now more than 75-days old. But it does highlight the concerns that the growth rates this quarter just can not be good. It also set the tone for more selling. It just goes to show that it still pays in today's climate to sell when you are feeling good about the market and buy when you feel overly concerned.

The Federal Reserve also auctioned off some $75 billion in treasury securities after receiving bids for some $86.1 billion. This was the first auction of its kind and the next auction is set for April 3. Below are the unofficial closing prices:

• DJIA 12,302.70 (-120.16; -0.97%)
• NASDAQ 2,280.83 (-43.53; -1.87%)
• S&P500 1,325.77 (-15.36; -1.15%)
• 10YR-TBond 3.534% (+0.04%)
• Key 52-Week Lows

If you look at the unusual increase seen in short selling in many of the NASDAQ names from this morning, you might scratch your head. But that's the world we live in.

Oppenheimer cut earnings estimates for both Merrill Lynch (NYSE:MER) and UBS (NYSE:UBS) saying both companies would lose money in Q1, according to Briefing.com. The news service also reports that Bank of America cut Motorola (NYSE:MOT) from "buy" to "neutral."

3Com (NASDAQ:COMS) was raised To "outperform" from "market perform" at Bernstein according to 24/7 Wall St. The financial website also reports that Juniper Networks (NASDAQ:JNPR) was cut To "neutral" from buy" at Goldman Sachs.

Douglas A. McIntyre is an editor at 247wallst.com.