Movers: Lehman, AIG, National City, National Semiconductor, Take-Two
Lehaman Brothers Holdings (LEH) trades lower after the New York Post reports that LEH is considering releasing its second quarter earnings a week early, and tying that announcement to news about a plan to raise capital through a rights offering, as the embattled investment bank looks to quiet doubts about its future. The article noted that Bloomberg reported last night that LEH is said to have talked to a handful of institutional investors in the U.S. and abroad to raise as much as $5 billion in capital. S&P keeps hold.
American International Group (AIG) falls after WSJ reports the SEC is investigating whether insurer AIG overstated the value of contracts linked to subprime mortgages, according to people familiar with the matter. S&P maintains hold.
National City (NCC) moves down on news that its banking unit, which has been buffeted by rising bad loans, has recently entered into a "memorandum of understanding" with federal regulators, effectively putting the bank on probation: WSJ.
National Semiconductor (NSM) posts $0.34, vs. $0.28 a year ago, fourth quarter EPS on 1.3% sales rise, fewer shares. Sees first quarter sales of $460-$475 million. Lehman raises estimate, target.
Take-Two Interactive Software (TTWO) posts better-than-expected $1.52, vs. $0.41, second quarter non-GAAP EPS on sharp sales rise, led by Grand Theft Auto IV for Xbox 360video game and entertainment system and PlayStation 3 computer entertainment system. It raises fiscal year 2008 guidance to $1.65-$1.85 non-GAAP EPS on sales of $1.4-$1.5 billion. S&P maintains hold.
EZCorp (EZPW) agrees to acquire 100% of the equity ownership of Value Financial Services Inc for about $110 million, comprised of $73 million paid to Value Financial Services shareholders, assumption of estimated mid-July debt of $35 million and estimated transaction costs of $1.4 million.
Lubrizol (LZ) announces a global price increase for all product lines, effective June 16. Says the majority of the increases will be in the range of 12% to 20%.
Focus Media Holding (FMCN) posts $0.34 first quarter non-GAAP EPS on sharp revenue rise. Says recent earthquake in Sichuan province will have a negative impact on its second quarter operations, especially to advertising revenues from networks in the earthquake region. Now sees 2008 revenue, excluding discontinued wireless advertising operations, of $820-$850 million vs. previous guidance of $860-$890 millio; it sees non-GAAP EPADS of $1.76-$1.91.
Inspire Pharmaceuticals (ISPH) says top-line results from 352-patient, double-blind, 24-week placebo-controlled portion of its Phase 3 trial (TIGER-1) with denufosol tetrasodium inhalation solution for treatment of cystic fibrosis (CF) demonstrated statistical significance for its primary efficacy endpoint, which was the change in FEV1 (Forced Expiratory Volume in One Second) from baseline at the trial endpoint (at 24 weeks or last observation carried forward).
Quiksilver (ZQK) posts $0.30, vs. $0.25, second quarter EPS from continuing operations on 15% higher revenue. Net revenues and income from cont. ops for both periods exclude the results of the Rossignol wintersports equipment and apparel business as well as the golf equipment business which are reported as discontinued operations. Sees 10% fiscal year 2008 revenue growth, with EPS slightly below fiscal year 2007's $0.90.
American Superconductor (AMSC) says it has licensed one of its proprietary wind turbine designs to Taiwan-based TECO Electric & Machinery Co., Ltd. (TECO) for a multi-million-dollar upfront license fee. AMSC will also receive royalty payments for wind turbines produced by TECO, has a right of first refusal to provide the full electrical systems, core electrical components for all of wind turbines made by TECO.
Cascade (CAE) posts better-than-expected $0.98, vs. $1.10, (adjusted) first quarter EPS as lower gross profit offset 11% sales rise. Year ago quarter excluded insurance litigation recovery gain.