Movers: Research in Motion, Micron Technology, Circuit City
Research in Motion (RIMM) posts $0.65 third quarter EPS, vs. $0.31 a year ago, on a sharp revenue rise. It sees $0.66-$0.70 fourth quarter EPS on revenue of $1.80-$1.87 billion. Bear Stearns upgrades to outperform from peer perform.
Micron Technology (MU) posts $0.34 first quarter loss per share, vs. $0.21 loss a year ago, as $62 million writedown offsets slight revenue rise. The memory chip maker estimates capital expenditures aggregating between $2.5-$3.0 billion for fiscal year 2008, of which approximately $500 million is estimated to be funded by contributions from joint venture partners.
Circuit City Stores (CC) posts $1.26 third quarter loss per share, vs. $0.12 loss a year ago, on 3.1% sales decline, $102.8 million tax expense. The retailer says third quarter non-GAAP loss was $0.64, which is seen as worse than expected.
The Wall Street Journal reports that Merrill Lynch (MER) may get up to $5 billion in a capital infusion from Temasek Holdings, the Singapore state investor.
Respironics (RESP) agrees to be acquired by Royal Philips Electronics for $66 per share, or about $5.1 billion.
Jabil Circuit (JBL) posts $0.30 first quarter GAAP EPS, vs. $0.20 a year ago, on 4.5% revenue rise. It sees second quarter revenue of $3-$3.1 billion and GAAP net ranging from $0.03 loss to $0.01 EPS. It sees fiscal year 2008 revenue of $13-$13.4 billion, GAAP EPS of $0.69-$0.99. S&P downgrades to sell from hold.
KeyCorp (KEY) sees fourth quarter loss of up to $0.05 due to additional reserves for loan losses, separation expense, losses associated with volatility in the fixed income markets and the strategic decision to exit certain business activities. It estimates provision for loan losses will exceed the level of its net charge-offs in the fourth quarter by $250-$270 million. It plans to eliminate 570 existing positions and an additional 300 open positions.
iStar Financial (SFI) declares special cash dividend of $0.25 per common share payable on Jan. 14, 2008 to shareholders of record as of the close of business on Dec. 31, 2007.
Computer Sciences (CSC) posts previously delayed preliminary results for the first and second quarters. The delay was due to the discovery of certain accounting errors in prior fiscal years relating to CSC's accounting for income taxes and for the effect of foreign currency exchange rate movements on certain intra-co. balances. For first quarter, it posts $0.80 vs. $0.60 non-GAAP EPS on 7.8% revenue rise. For second quarter, it posts $0.54 vs. $0.68 non-GAAP EPS as higher-than-expected effective tax rate offset 11% revenue rise. It sees third quarter revenue of $4-$4.2 billion, EPS excluding items of $0.95-$1.05.
Red Hat (RHT) posts $0.10, vs. $0.07 a year ago, third quarter GAAP EPS on 28% revenue rise. Non-GAAP EPS were $0.19 vs. $0.14. It elects James M. Whitehurst as President and CEO and a member of the Board of Directors of Red Hat, effective Jan. 1, 2008, succeeding Matthew J. Szulik., who will continue to serve as Chairman of the Board of Directors.
Tibco Software (TIBX) posts $0.18, vs. $0.14 a year ago, fourth quarter non-GAAP EPS on 16% revenue rise.
Marsh & McLennan Companies (MMC) says its Board of Directors has initiated a search for CEO to replace Michael G. Cherkasky, who has served as President and CEO of MMC since October 2004. Says board will continue to evaluate strategies to enhance shareholder value.