Movers: GM, Sirius XM Radio, Wal-Mart, MGIC Investment
General Motors (GM) - WSJ reports GM and Chrysler LLC are required to submit recovery plans to govt today as part of their agreement to receive billions of dollars in federal loans. Under terms of their federal loans, GM, Chrysler plans are supposed to include agreements with UAW on labor-cost reductions and deals with bondholders and other creditors for reducing their debt. President Obama's administration names Ron Bloom as a key adviser to task force.
Sirius XM Radio (SIRI) inks deals with Liberty Media (LINTA) whereby LINTA will invest $530 million in the form of loans to Sirius XM and its subsidiaries and receive an equity interest in SIRI. Upon completion of LINTA investments, SIRI will issue LINTA 12.5 million preferred shares convertible into 40% of SIRI common stock. In addition, LINTA will receive seats on SIRI Board proportionate to its equity ownership.
Wal-Mart Stores (WMT) Posts $1.03 vs. $1.03 (incl. $0.02 charge) fourth quarter underlying EPS from cont. ops on 1.6% higher Walmart U.S. same-store sales, including fuel, 1.7% higher total sales. Sees $0.72-$0.77 first quarter reported EPS, $3.45-$3.60 fiscal year 2010.
MGIC Investment (MTG) - Moody's Investors Service cut its credit ratings on MTG and Radian Group (RDN) several notches to junk status because of deterioration in their franchise value and likelihood of sustained losses for several years and substantially limited access to capital. The firm cut the insurance financial strength rating of GNW mortgage-insurance units 5 notches to Baa2, or two notches above speculative grade.
Transocean Ltd. (RIG) posts $2.50, vs. $4.17, fourth quarter EPS as $385 million in net charges offset 57% revenue rise. Operating margins narrowed to 33.1% from 55.5%.
Suntrust Banks (STI), Fifth Third Bancorp (FITB), as well as big banks Citigroup (C) and Bank of America (BAC), are among financial services firms being weighed down by disappointment with the government's planned credit-market bailout and concerns that the $787 billion stimulus plan won't jolt the economy fast enough, according to Dow Jones.
Google (GOOG) falls 14.58 to 343.10. ThinkEquity downgrades GOOG to Source of Funds from accumulate.
Deere & Co. (DE) shares fall after Goldman reportedly downgrades DE to sell from neutral.
Coldwater Creek (CWTR) sees fourth quarter fiscal year 2009 sales of about $280 million, reflecting a same-store sales decline of about 22%. Expects to realize fourth quarter loss per share of $0.23-$0.25, vs. $0.19 loss in fourth quarter fiscal year 2008. Expects a continued challenging macroeconomic environment. In new credit facility deal with Wells Fargo; secured, three-year revolving credit facility has increased the aggregate commitment amount by $10 million to $70 million, subject to borrowing base limitations. S&P maintains hold.
Daimler AG (DAI) posts EUR 1.61 fourth quarter loss, vs. EUR 1.71 EPS a year ago, on 12% revenue drop. Proposes EUR 0.60 2008 dividend, vs. EUR 2.00 in 2007. On the basis of assumptions concerning the development of the automotive markets and the divisions' planning, DAI expects total unit sales to decrease significantly in 2009.
Aegon N.V. (AEG) sees fourth quarter net loss of about EUR 1.2 billion. It sees underlying loss before tax of about EUR 200 million, due mainly to reserve strengthening, accelerated amortization of deferred acquisition costs in U.S., lower fees.
Teva Pharmaceutical Industries (TEVA) posts $0.76, vs. $0.69, fourth quarter non-GAAP EPS on 11% revenue rise. Notes exchange rate differences negatively impacted sales in fourth quarter '08 by about 5%, and had a $28 million adverse affect on operating income compared to fourth quarter 2007.
Dycom Industries (DY) sees second quarter revenue of $245 million, below previous forecast of $250-$270 million. Sees second quarter after-tax loss from cont. ops of $0.02 per share (including gain, excluding charge) vs. previous forecast for $0.02-$0.07 EPS. Cites decline in customer spending, primarily in later part of second quarter. Also, in some instances, DY experienced limitations on available work due to difficult weather conditions. To discontinue providing detailed guidance of revenue, EPS expectations when it announces second quarter results.
CEC Entertainment (CEC) posts $0.11 fourth quarter EPS, vs. $0.02 loss, as a $1.7 million reduction in CEC's contingency reserve for ongoing legal matters and an $8.2 million decrease in asset impairment charges offset a slight drop in revenue. Says the outlook for the consumer economic environment is "markedly negative." For 2009, currently sees $2.53-$2.65 EPS, reflecting a 7%-12% growth rate from 2008.
Zebra Technologies (ZBRA) posts $1.88 fourth quarter loss, vs. $0.45 EPS, on flat revenue. Current quarter incl. pretax non-cash impairment charges of $157.6 million or $2.20 per share after tax, for write-down of assets. Sees first quarter sales of $195-$210 million and EPS of $0.11-$0.20 (including items).
Walter Industries (WLT) posts $4.37, vs. $0.76, fourth quarter EPS on 43% higher sales and revenue. Fourth quarter 2008 EPS includes a $3.04 income tax benefit and other unusual items. Looking to first quarter 2009, WLT says its metallurgical coal sales forecast is reduced by 250,000 tons due to concerns about availability of coal at the Port of Mobile as a result of a 2-week rail disruption.
Medtronic (MDT) posts $0.71, vs. $0.63, third quarter non-GAAP EPS on 3% revenue rise (6% increase after adjusting for an unfavorable $110 million forex impact). Sees fiscal year 2009 EPS of $2.91-$2.95 on sales of $14.6-$14.7 billion.
Smithfield Foods (SFD) says it would be restructuring its pork department. It expects to cut 1,800 jobs in the restructuring.
Trina Solar (TSL) says it expects fourth quarter revenues to exceed its previous guidance of $190-$210 million, positive net operating cash flow to be approximately $60 million. For 2008, expects revenues to meet its previous guidance of $800-$850 million and total module shipments to meet its previous guidance range of 200 MW to 206 MW.
Illinois Tool Works (ITW) says operating revenue for 3-month period ended 1/31 fell 15%. Cites increasingly more negative macro and end market trends in North America, Europe and Asia as the 3-month period progressed and forex impact. Sees first quarter EPS from continuing operations of $0.26-$0.42 on 11%-17% revenue decline. Sees 2009 EPs from continuing operations of $1.84-$2.48 on 6%-12% revenue decline.
United Therapeutics (UTHR) posts $1.02, vs. $1.02, fourth quarter EPS (before non-cash charges) despite 27% revenue rise.
Lloyds Banking Group PLC (LYG) could be forced to write off a further swath of loans made by HBOS to hundreds of companies, after figures showed many of the loans are worth only a fraction of their original value, The Guardian reports. Further deterioration in bank's loans could force management to call for further funds from government. Friday the company said short term outlook is more challenging; forecast HBOS to report underlying loss before tax of some GBP8.5b.
Ameren (AEE) posts $0.45, vs. $0.60, fourth quarter core EPS despite 5.3% total revenue rise. Sees 2009 core EPS of $2.75-$3.15. Street view for 2009 EPS is at $3.26. Board declares quarterly dividend to $0.385 per share. The board's action is consistent with an annualized dividend of $1.54 per share, or a 39% reduction from the previous annual dividend level of $2.54.