Movers: Bank of America, National City, Apple, Merck, Eli Lilly, Mattel, Hasbro
Bank of America (BAC) posts $0.23, vs. $1.16 a yearf ago, first quarter EPS on 6.3% revenue drop. Notes provision expense of $6.01 billion and trading-related losses of $1.31 billion. The company notes that GDP growth is expected to be minimal at best in the second quarter, with a slight pickup in the second half.
National City (NCC) is down 2.27 to 6.06 after its board approves the raising of $7 billion of additional equity capital. Cuts quarterly dividend to $0.01 from $0.21. Separately, posts $0.27 first quarter loss on about $1.4 billion provision. Earlier, S&P downgraded to hold from buy. Sandler O'Neill keeps hold.
Apple (AAPL) shares are higher ahead of second quarter earnings release, due on Wednesday. Earlier today, Citigroup raised its first quarter EPS estimate to $1.23 EPS on revenue of $7.0 billion; it cites solid PC sales, and share decline in DRAM/flash pricing; reiterates buy, and has 212 price target.
RadioShack (RSH) is seen higher on speculation that Dell (DELL) might be interested in acquiring the retailer.
Amylin Pharmaceuticals (AMLN) posts $0.51 first quarter loss per share, vs. $0.38 loss a year ago, as higher expenses offset 15% revenue rise. BYETTA sales of $158.5 million were lower than expected this quarter in part due to wholesaler buying patterns. S&P downgrades to hold from buy. Lazard Capital keeps hold, cuts estimates.
Medcath (MDTH) sees second quarter revenue of $156.7-$157.3 million and $0.25-$0.28 second quarter EPS from continuing operations. Notes lower-than-anticipated inpatient volumes, revenue per adjusted admission, net revenue and adjusted EBITDA in MedCath Partners unit. Now sees $620-$630 million fiscal year 2008 revenue, $25.8-$27.4 million income from continuing operations. Raymond James downgrades to outperform from strong buy, further details unavailable.
A. H. Belo (AHC) sees first quarter financial performance "substantially below its expectations." In letter to shareholders, says it has been particularly affected by steep revenue declines year-over-year in Riverside, while Dallas and Providence have held up better on a comparative basis.
Sears Holdings (SHLD) is down 7.24 to 97.48. In SEC filing dated April 18, SHLD said that Bank of America, N.A advised company that it would not agree to renew the Letter of Credit Agreement under its existing terms. The current term of this agreement (a 364-day secured facility with a commitment amount of up to $1 billion) is scheduled to end in July 2008. SHLD said it is using its other facility for substantially all of its letter of credit needs, so termination is not expected to have any effect on its liquidity.
Merck & Co. (MRK) posts $0.89, vs. $0.84 a year ago, first quarter non-GAAP EPS despite flat sales. Non-GAAP EPS excludes a $1.4 billion net after-tax gain and restructuring charges; EPS on a GAAP basis was $1.52, vs. $0.78. The drug maker sees 2008 non-GAAP EPS of $3.28-$3.38, GAAP EPS of $2.84-$4.00.
Eli Lilly & Co. (LLY) posts $0.97 (including tax benefit), vs. $0.47 a year ago, first quarter EPS on 14% sales rise. It says current quarter reflects encouraging sales growth of Cymbalta, Cialis, Alimta, Forteo and Humalog. Sees 2008 EPS of $3.90-$4.05 (including items).
Mattel (MAT) posts $0.13 first quarter loss per share, vs. $0.03 EPS a year ago, on 2.2% sales drop.
Hasbro (HAS) posts $0.25, vs. $0.19, first quarter EPS on 13% revenue rise.
Hanesbrands (HBI) posts $0.38, vs. $0.12, first quarter EPS despite 5% sales drop.
Arch Coal (ACI) is up 3.81 to 62.18 after it posts $0.56, vs. $0.20, first quarter EPS on 22% revenue rise. Separately, announces that its sr. vice president, CFO, Robert J. Messey, has announced plans to retire. S&P raises estimate, target, keeps hold.
Halliburton (HAL) posts $0.64 (including $0.02 after-tax charge), vs. $0.54, first quarter EPS on 18% revenue rise.
Bear Stearns upgrades MGIC Investment (MTG) to outperform from peer perform. It says MTG and PMI Group (PMI) appear best positioned.
Alliance Data Systems (ADS) terminates acquisition deal, whereby it agreed to be acquired by affiliates of
Blackstone Group (BX), and files a lawsuit against BX, accusing it of breaching its agreement to buy ADS.
Circor International (CIR) raises $0.54-$0.58 first quarter EPS guidance to $0.74-$0.77, including $0.01 of special charges. Cites wider-than-expected margin in both its Energy and Instrumentation & Thermal Fluid Controls segments.
CSK Auto (CAO) posts $0.28 fourth quarter loss per share, vs. $0.03 loss a year ago, on 3.5% lower same-store sales, 9.6% lower total sales.