Stocks on the move on Tuesday
From Standard & Poor's Equity ResearchBear Stearns (BSC) is up 2.26 to 7.07. S&P believes the shares are higher today on speculation shareholders will not approve the deal with JPMorgan (JPM) in its current form. S&P finds this unlikely; keeps sell opinion.
Lehman Brothers (LEH) posts better-than-expected $0.81, vs. $1.96 a year ago, first quarter EPS on 31% revenue rise. It says it had $34 billion in liquidity at quarter-end. S&P upgrades to hold from sell. Goldman adds LEH and Morgan Stanley (MS) to Americas Buy List.
Goldman Sachs (GS) posts better-than-expected $3.23, vs. $6.67 a year ago, first quarter EPS on 16% revenue decline. It says annualized return on average tangible common shareholders' equity was 17.0% and annualized return on average common shareholders' equity was 14.8% for first quarter FY 08. Separately, Wachovia reportedly upgrades to outperform from market perform.
Yahoo (YHOO) reiterates its first-quarter revenue outlook of $1.28 billion to $1.38 billion and full-year revenue of $5.35 billion to $5.95 billion. It says it expects to roughly double operating cash flow over the next three years and generate $8.8 billion in revenue after costs in 2010. Its board still thinks that Microsoft's (MSFT) Jan. 31 takeover bid undervalues the company.
Freddie Mac (FRE) and Fannie Mae (FNM) shares are up sharply today as unconfirmed report says these government sponsored enterprises are working on a deal with their regulator, OFHEO, to lift at least part of a capital surplus mandate. S&P Equity Research maintains hold on FRE, FNM.
MF Global Ltd. (MF) is up as Dow Jones reports that the company told employees today that rumors about its capital position were "entirely unfounded" and said its derivatives brokerage business continued to function "effectively" throughout the Asian trading day and the European market open. MF was responding to speculation on Monday that it faced a liquidity squeeze and a flight of clients from its global business. .
Delta Air Lines (DAL) plans to offer voluntary severance to 30,000 employees. CFO confirms previous first quarter guidance and says 2008 profitability "not out of the questions." Also reportedly says it has now targeted $550 million in productivity initiatives for 2008, a $150 million increase over its plan.
Pilots at Delta Airlines (DAL) notified company officials they remain unable to reach agreement with their counterparts at Northwest Airlines (NWA) on how to integrate pilot ranks if the two airlines combined -- a deadlock that could scuttle the merger sought by the two carriers: WSJ.
Getty Realty (GTY) shares tumble 12.19 to 14.77 after it revises its fourth quarter and 2007 results downward to reflect the recording of a $10.5 million non-cash reserve for deferred rent receivable for its Getty Petroleum Marketing unit. It says net EPS totaled $0.02 for the fourth quarter and $1.37 for 2007, vs. the $0.45 and $1.73 the company announced on Feb. 5, respectively.
American Railcar Industries (ARII) falls after UBS Financial downgrades to sell from neutral.
Oil States International (OIS) and Helmerich & Payne (HP) rise after Stifel Nicolaus upgrades the stocks to buy from hold on improving U.S. natural gas fundamentals
Dynavax Technologies (DVAX) and Merck (MRK) announce that the FDA has placed a clinical hold the two Investigational New Drug (IND) applications for HEPLISAV(TM), an investigational hepatitis B vaccine being jointly developed for use in adults by Dynavax and Merck, because of a serious adverse event (SAE) that occurred in one subject who received HEPLISAV in a Phase 3 study being conducted outside the U.S. Merriman reportedly downgrades to neutral from buy.
Allscripts Healthcare Solutions (MDRX) says Misys Plc's Misys Healthcare unit to merge with MDRX unit. Misys Plc will contribute $330 million in cash to MDRX, for which it will receive shares representing 54.5% ownership stake in combined co. MDRX will pay special cash dividend of $330 million, or about $4.90 per share, to MDRX stockholders.
NYSE Euronext (NYX) sets $1 billion share buyback. It also raises annual dividend by 20%, to $1.20.
Nuvelo (NUVO) says data from Phase 2 program in catheter occlusion (CO), known as SONOMA-3 (Speedy Opening of Non-functional and Occluded catheters with Mini-dose Alfimeprase), didn't show sufficient improvement in catheter opening at higher dose and concentration evaluated in study to meet desired target product profile. As a result, NUVO has ended further clinical development of alfimeprase including its programs in CO and acute ischemic stroke, will cut workforce by about 40 employees. Anticipates incurring restructuring charges of about $3 million in the first quarter 2008.
Doral Financial (DRL) says the sale of Bear Stearns (BSC) to JPMorgan (JPM) does not have an impact on its operations. Bear Stearns Merchant Banking, a standalone affiliate of BSC, is one of DRL's many shareholders, including DE Shaw & Co., Perry Capital, Tennenbaum Capital Partners LLC, Marathon Asset Management LLC, Goldman Sachs, Eton Park Capital Management, and GE Asset Management, among others. These shareholders formed a banking entity, Doral Holdings Delaware LLC, which, in turn, invested $610 million in DRL in July 2007.
McClatchy (MNI) says consolidated revenues in February 2008 decreased 12% and advertising revenues were down 13%. Says it continues to see a majority of the decline in advertising revenue from newspapers in California and Florida, two states severely affected by the real estate downturn.
Carmike Cinemas (CKEC) posts $5.40 fourth quarter loss per share, vs. $0.46 loss a year ago, on 3.5% lower total revenue. In the current quarter, CKEC recorded non-cash impairment charges consisting of $26.2 million related to theatre assets and $38.2 million related to goodwill. Says disappointing fourth quarter results due to weaker-than-expected fourth quarter box office, especially in October and November.
Consolidated Water (CWCO) posts $0.18, vs. $0.05 a year ago, fourth quarter EPS on 34% revenue rise.
Shuffle Master (SHFL) posts $0.05 first quarter GAAP loss from continuing operations, vs. $0.06 EPS as costs, margin pressures offset 1.0% revenue rise. Says adjusted EBITDA totaled $6 million, down from $12.0 million in fourth quarter fiscal year 2007, $10.7 million in first quarter fiscal year 2007. Notwithstanding the fact that product sales will be de-emphasized in favor of product leases, still expects fiscal year 2008 revenue to exceed fiscal year 2007 revenue. Given the generally better margins associated with recurring vs. sale revenue, expects adjusted EBITDA, EBT and EPS will show "marked improvement" over fiscal 2007.