Movers: Bear Stearns, Lehman Brothers, Goldman Sachs, Yahoo, Dynavax
Bear 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 ( 2 Next Page