Movers: Intel, Yahoo, Bear Stearns, Ericsson, GM, EchoStar
After the market close, Intel (INTC) reports third quarter EPS of $0.31, a penny above the Reuters Estimates consensus of $0.30. Revenues rose 15.6% from a year ago to $10.1 billion, vs. the $9.61 billion consensus. It issues higher guidance for the fourth quarter - it sees revenues of $10.5-11.1 billion, vs. $10.43 billion consensus. It sees fourth quarter gross margin 57% plus or minus a couple of points, vs. 55.1% consensus.
Yahoo (YHOO) reports third quarter EPS of $0.11, $0.03 better than the Reuters Estimates consensus of $0.08; revenues ex TAC rose 14.5% from a year ago to $1.28 billion, vs. the $1.24 billion consensus. It issues in-line guidance for the fourth quarter -- it sees revenues ex TAC of $1.31-1.45 billion, vs. $1.37 billion consensus.
IBM (IBM) reports third quarter EPS of $1.68 per share, matching the consensus estimate; revenues rose 6.6% from a year ago to $24.12 billion.
China CITIC Bank Corp. Ltd. is reportedly bidding to buy a stake in Bear Stearns (BSC).
Ericsson (ERIC) sees lower-than-expected third quarter sales of SEK43.5 billion, operating income of SEK5.6 billion, and a negative cash flow of SEK1.6 billion. It cites an unexpected shift in the business mix.
Genentech (DNA) posts $0.73, vs. $0.59 a year ago, third quarter non-GAAP EPS on 22% non-GAAP revenue rise. It continues to see 28%-32% rise in non-GAAP EPS for full-year 2007. But revenues are seen as below consensus view.
Bear Stearns downgrades General Motors (GM) to underperform from peer perform; recommends swapping into Ford (F) (rated outperform). Bear states that from Monday's conference call regarding the UAW agreement, it concluded that the 2008-09 benefits to EPS and cash flow appear to be less than it had expected.
D.R. Horton (DHI) reports a 48% drop in in September-quarter net sales orders. S&P maintains buy as it remains positive on DHI's ability to gain share when housing recovers.
EchoStar Communications (DISH) rises after The Street.com reports on its Web site that AT&T (T) has hired Goldman Sachs to advise it on the possible purchase of DISH.
Wells Fargo & Co. (WFC) posts lower-than-expected $0.68, vs. $0.64 a year ago, third quarter EPS on 10% revenue rise. It notes net credit losses in the third quarter were up $172 million from the second quarter.
KeyCorp (KEY) posts $0.57, vs. $0.74 a year ago, third quarter EPS from continuing operations on 1.9% drop in net interest income. It sees $0.68-$0.74 fourth quarter EPS.
Johnson & Johnson (JNJ) posts $0.88, vs. $0.94 a year ago, third quarter EPS as after-tax restructuring charge of $528 million offset 13% higher sales. It posts $1.06 non-GAAP EPS, which is ahead of Street views. It raises 2007 EPS guidance to $4.10-$4.13, excluding impact of in-process research and development charges, restructuring charges or other special items.
Forest Laboratories (FRX) posts $0.71, vs. $0.75 a year ago, second quarter EPS as $70 million licensing charge made in connection with Microbia agreement offset 8.5% revenue rise. It sees $3.10-$3.20 fiscal year 2008 EPS, which excludes the $70 million ($0.15 net of tax) licensing charge, as it was not included in prior guidance.
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