Movers: Lehman Brothers, Monsanto, GM, Lululemon Athletica
Lehman Brothers Holdings (LEH) is considering raising billions of dollars in fresh capital to help shore up its balance sheet, according to the Wall Street Journal. Analysts and Wall Street executives estimate it's likely to be $3-$4 billion, and said LEH would probably announce the capital raising in conjunction with quarterly results, due the week of June 16. The article also notes that amount of new capital under consideration suggests LEH's quarterly loss could be larger than the $300 million or so that some analysts have been expecting.
Home builder Toll Brothers (TOL) posts a second quarter loss oft $93.7 million, or $0.59 per share, which topped the expected loss of $0.89 per share. In the prior year, Toll Brothers earned $36.7 million, or $0.22 per share. Revenue fell 30% to $819 million.
Sherwin-Williams (SHW) sees lower-than-expected second quarter EPS of $1.40-$1.50 due to lower domestic net sales and continued raw material and other input cost increases. Sees $3.60-$4.10 2008 EPS on slight year-over-year sales decline. S&P downgrades to hold from buy.
New Frontier Media (NOOF) posts $0.08, vs. $0.07, fourth quarter EPS as lower operating expenses offset 11% lower sales. Suspends indefinitely its quarterly cash dividend. Extends stock buyback program through June 2010. Merriman Curhan downgrades to neutral from buy.
Monsanto Company (MON) is up 4.67 to 133.22 after BB&T Capital raises estimates on MON as it continues to expect strong glyphosate earnings due to skyrocketing phosphate rock prices.
General Motors (GM), in response to demand for fuel-efficient vehicles, economic and market challenges in North America, announces major initiatives, including: 1) cessation of production at four plants that build pickups, SUVs and medium-duty trucks, strategic review of the Hummer brand; 2) new global compact care program for Chevrolet; 3)funding for production of the Chevy Volt extended-range electric vehicle; 4) addition of third shifts to Lordstown, Ohio, plant and Michigan's Orion Assembly Center.
CSX Corp. (CSX) says it is confident that the company can achieve 18%-21% compound annual growth in EPS (before repurchases) between now and the end of 2010. Says it's growing in new, emerging and resilient markets such as ethanol and export coal, and forging partnership with trucking companies to move goods by train over long distances.
Lululemon Athletica (LULU) posts $0.12, vs. $0.05, first quarter EPS on 28% higher same-store sales, 75% higher net revenue. Says the company's plan to make additional strategic investments in its long-term growth will result in a slightly reduced EPS outlook for fiscal year 2009. Now sees $0.68-$0.71 fiscal year 2009 EPS vs. previous guidance of $0.70-$0.72.
Staples (SPLS) and its wholly owned subsidiary Staples Acquisition B.V. increase all cash offer price for Corporate Express NV (CXP) to €9.15 per ordinary share, or $2.7 billion. The offer is contingent upon CXP shareholders rejecting the proposed Lyreco SAS transaction.
Brocade Communications Systems (BRCD) announces that under a preliminary settlement, it has reached to pay $160 million to the plaintiff class in exchange for the dismissal with prejudice of all claims against all defendants in the federal securities class-action lawsuit.
Walgreen (WAG) posts 3.9% higher May same-store sales, 6% higher comp store front-end sales, 10% higher total sales.
Eastman Chemical (EMN) announces the acquisition of Green Rock Energy LLC's 50% ownership interest in the Beaumont, Texas, industrial gasification project. Terms of the transactions were not disclosed.