Movers: IBM, eBay, Motorola, UnitedHealth
IBM (IBM) posts second quarter earnings per share of $1.50 (excluding $0.05 gain from sales of printing unit), vs. $1.30 a year ago, on 9% revenue rise. It reportedly raises 2007 EPS growth forecast to 14%-15%. S&P reiterates strong buy; raises target to $127.
Motorola (MOT) posts $0.02 second quarter loss from continuing operations, vs. $0.54 EPS a year ago, on a 19% sales drop. It notes a decline in mobile device unit shipments. It sees third quarter EPS from continuing operations flat with to slightly better than second quarter. S&P keeps hold.
UnitedHealth Group (UNH) posts $0.87, vs. $0.70 a year ago, second quarter EPS on a 6% revenue rise. It raises the upper end of 2007 EPS guidance by $0.02; now sees $3.43-$3.48, excluding $0.08 charges related to historic stock option matters, on revenues of about $76 billion.
Bank of America (BAC) posts $1.28, vs. $1.19 a year ago, second quarter EPS on 7.4% revenue rise (net of interest expense).
Ebay (EBAY) posts $0.27, vs. $0.17 a year ago, second quarter GAAP EPS on a 30% revenue rise. It sees $0.25-$0.27 third quarter EPS on revenue of $1.775-$1.825 billion. S&P reiterates buy.
SAP (SAP) posts €0.37, vs. €0.34 a year ago, second quarter EPS on 10% revenue rise. It sees 2007 software and software related service revenues up 12%-14% at constant currencies from 2006, full-year 2007 operating margin of 26%-27%.
Harley-Davidson (HOG) posts $1.14, vs. $0.91 a year ago, second quarter EPS on an 18% revenue rise. In 2007, the motorcycle maker expects EPS growth of 4%-6%, in 2008-09 sees solid revenue growth, operating margin improvement, and continued benefits of strong free cash flow to drive EPS growth in the 11%-17% range.
Sterling Financial (SLFI) agrees to be acquired by PNC Financial Services Group (PNC) for $565 million in stock and cash, or about $19.00 per share
Genco Shipping (GNK) agrees to acquire 9 Capesize vessels from companies within Metrostar Management Corp. group for about $1.1 billion. Bear Stearns upgrades to outperform from peer perform.
Citrix Systems (CTXS) posts $334 million second quarter revenue, a 21% year-over-year increase. It sees third quarter revenue of $335-$343 million. Jefferies upgrades to buy from hold.
TD Ameritrade (AMTD) posts $0.26, vs. $0.23 a year ago, third quarter EPS on slight revenue rise. It raises mid-point of fiscal year 2007 guidance to $1.01, tightens outlook range to $0.97 to $1.05, reflects record third quarter results and the impact of spending on investments for growth.
Honeywell International (HON) posts $0.78, vs. $0.63 a year ago, second quarter EPS on an 8.1% sales rise. It raises 2007 sales guidance to $33.9 billion, EPS to $3.10-$3.16, and free cash flow $2.8-$3.0 billion. It also sets additional $3 billion stock buyback.