Verizon Communications Inc. (VZ: chart) reportedly reached an agreement late Sunday to buy MCI Inc. (MCIP: chart) for about $6.8 billion, in cash, shares and dividends. According to sources familiar with the situation, the boards of the two companies approved the acquisition last night, and the agreement was expected to be announced Monday morning. Earlier on Sunday, rival Qwest Communications International Inc. (Q: chart) had raised its takeover bid for MCI to $7.3 billion in stock and cash from a previous offer of $6.3 billion. Despite its lower offer, New York-based Verizon, the largest local-phone company in the U.S., is believed to have won the competition with Qwest, as, according to analysts, Verizon presents better growth opportunities, stronger balance sheet, and an ability to pay a greater dividend. The purchase of MCI would help Verizon transform into a leading company for large corporate customers. Ashburn, Virginia-based long-distance carrier MCI, which emerged from bankruptcy last spring, boasts 14 million residential and over one million business customers. The Verizon-MCI merger is the third big telecom deal for the past two months. In December last year, Sprint Corp. (FON: chart) agreed to acquire Nextel Communications Inc. (NXTL: chart) for $35 billion, and two weeks ago SBC Communications Inc. (SBC: chart) announced that it agreed to buy AT&T Corp. (T: chart) for $16 billion.

Dell Inc. (DELL: chart) announced after the bell Thursday fourth-quarter operating earnings that surpassed analysts’ expectations, boosted by strong demand from its U.S. business customers. However, the shares of the world's largest PC maker dropped more than 3% in after-hours trading, as quarterly revenue fell short of Wall Street’s projections, and the company forecast weaker-than-expected growth for the first quarter of 2005. Dell posted a net profit of $667 million, or 26 cents per share, for the fourth quarter of 2004, which included a tax charge of $280 million, or 11 cents a share. For the same quarter last year, net profit was $749 million or 29 cents per share. Excluding items, fourth-quarter earnings came to 37 cents a share, topping by a penny a share the consensus analysts’ estimate. For the quarter ended January 28, revenue increased 17% to $13.46 billion, but still missed analysts’ target of $13.54 billion. The Round Rock, Texas-based company said sales to U.S. business customers rose 19% from last year. U.S. consumer sales were up only 10%, hurt by pricing pressures. For the full year, earnings totaled $3.04 billion, or $1.18 per share, on revenue of $49.21 billion. That compares to $2.65 billion, or $1.01 per share, on revenue of $41.44 billion, for 2003.

Looking ahead, Dell forecast first-quarter income of 37 cents a share and revenue of $13.4 billion. Analysts predicted a profit of 36 cents a share, on revenue of $13.5 billion.

Dell shares gained 58 cents to $41.57 at market close Thursday. The stock dipped 3.20% to $40.24 in after-market trade.

Analog Devices, Inc. (ADI: chart) of Norwood, Massachusetts, posted Thursday an 8% drop in its quarterly profits, hurt by a decrease in revenue. The chip maker announced first-quarter earnings of $107.4 million, or 28 cents a share, compared with $116.8 million, or 30 cents a share, generated a year ago. The results were 1 cent a share below the mean analysts’ forecast. For the quarter ended January 29, sales eased 4% to $580.5 million, due to a decline in wireless handset products that were negatively impacted by excess inventory of wireless handsets by Chinese manufacturers.

The stock closed Thursday at $36.83, down 35 cents, or 0.94%. Company shares lost 21 cents to $36.62 in the extended session.

Brown & Brown, Inc. (BRO: chart) on Thursday turned in net income of $30.3 million, or 43 cents per share, for its fiscal fourth quarter, in contrast to net income of $25.8 million, or 37 cents per share, for the 2003 equivalent. The Daytona Beach, Florida-based insurer beat by 2 cents a share the average analysts’ estimate. The company attributed the results to strong revenue, which jumped 21% from last year to $163 million, helped by acquisitions.

Company shares shed 30 cents on Thursday to $43.50.

Pixar Animation Studios (PIXR: chart) of Emeryville, California, reported Thursday lower quarterly earnings, as revenues declined from a year earlier. The animation studio, which produced ‘The Incredibles’ last year, posted fourth-quarter net income of $55.2 million, or 91 cents per share, down from $83.9 million, or $1.44 per share, for the 2003 comparable period. Despite the drop, the earnings outpaced the average analysts’ forecast of 76 cents per share. Quarterly revenue fell to $108.9 million from $164.8 million.

The stock gained $1.00 to close Thursday at $89.88. Pixar shares rose 1.25% to $91.00 in after-hours trading.