Movers: Wyeth, Pfizer, Google, GE, Capital One
WSJ reports that Pfizer (PFE) is in talks to acquire rival drug maker Wyeth (WYE) in a deal that could be valued at more than $60 billion.
Google (GOOG) posts $5.10 (non-GAAP), vs. $3.79 a year ago, fourth quarter EPS on 18% revenue rise. Plans to offer employees a voluntary, one-for-one stock option exchange. S&P reiterates strong buy.
General Electric (GE) posts $0.36, vs. $0.68 a year ago, fourth quarter EPS on 4.8% revenue drop. Notes results include $1.5 billion of after-tax restructuring and other charges, including increased reserves in current environment, which are above the company's original plan; says restructuring will lower costs for 2009 and beyond. GE says it committed to its dividend plan for $1.24 per share for the year.
Capital One Financial (COF) posts $3.67 fourth quarter loss from continuing operations, vs. $0.85 EPS, on 19% total revenue decline. COF recognized $810.9 million non-cash impairment of goodwill in conjunction with its revised outlook for its Auto Finance business. S&P Ratings Services says it revised its outlooks on COF to negative from stable, based on the firm's lower profitability as the weak phase of consumer credit cycle elevated credit losses on loans.
Advanced Micro Devices (AMD) posts $2.32 fourth quarter loss from continuing operations on 33% revenue decline. The results for continuing operations include an unfavorable impact of $996 million, or $1.64 per share. Given current macroeconomic conditions, very limited visibility and continued corrections in the supply chain, AMD expects first quarter revenue to decrease sequentially.
Xerox (XRX) posts breakeven, vs. $0.41, fourth quarter EPS on 10% revenue drop. Posts $0.30 fourth quarter adjusted EPS. Street was looking for $0.33-$0.34. Cites continued weakening economy, rapid shift in exchange rates. Sees $0.16-$0.20 first quarter EPS.
MEMC Electronic Materials (WFR) posts $0.33, vs. $1.62, fourth quarter GAAP EPS on 21% sales decline. Non-GAAP EPS, excluding warrants, was $0.65. Says its current view of markets it serves indicates first quarter revenue could decline by as much as 50% from fourth quarter 2008, and that reduced pricing and significantly lower factory utilization assumed in this view could result in gross margins declining to the 20% range.
Harley-Davidson (HOG) posts $0.34, vs. $0.78, fourth quarter EPS on 6.8% revenue drop. Plans to ship between 10%-13% less new Harley-Davidson motorcycles in 2009 vs. 2008. Planned volume reduction, restructuring actions are expected to result in elimination of about 1,100 jobs over 2009-2010, On combined basis, expects volume reduction, changes to operations to result in 1x charges of about $110-$140 million over 2009-2010, ongoing annual savings of about $60-$70 million upon completion.
Polaris Industries (PII) says it is cutting about 460 jobs in response to weakening retail demand in a difficult 2009 economic outlook. The job cuts include about 160 salaried and hourly full-time positions and about 300 contractors, part-time and temporary positions spread across all product lines and multiple facilities worldwide. These cuts affect about 5% of the current PII employee base, and will be completed over the coming weeks.
Centex (CTX) expects to report third quarter cash balance of $1.5 billion, up $200 million from the second quarter. Anticipates generating positive cash flow from operations in third quarter, for fiscal year 2010. Based upon current housing market conditions, outlook for a further decline in home prices, expects to record between $550-$600 million in non-cash impairments for third quarter, primarily for land valuation.
Marvell Technology Group (MRVL) cuts $690-$730 million fourth quarter EPS to $500-$520 million, or a decline of 34%-37% from net revenue of $791 million reported for third quarter and about 38%-41% below the $845 million reported in fourth quarter 2007.