Movers: SLM, AIG, IBM, Safeway, GM, Integrys Energy
SLM Corp. (SLM) falls 3.36 to 5.03 after WSJ.com reports: "President Barack Obama proposed to eliminate private lenders from the student-loan market and have the federal government make all such loans directly. In his spending blueprint for fiscal 2010, Mr. Obama said the shift to the Department of Education's so-called direct-lending program would save more than $4 billion a year in subsidies paid to private lenders and eliminate uncertainty for students "because of turmoil in the financial markets."
AIG (AIG) and U.S. authorities are in advanced talks over a restructuring that would split AIG into at least 3 government-controlled units, according to FT. Under plan, the government would swap its 80% AIG holding for large stakes in 3 units - AIG's Asian operations, its international life insurance business and the U.S. personal lines business. In return, authorities would relax terms, or even cancel a large portion, of a $60 billion 5-year loan to AIG and convert $40 billion-worth of preferred stock into common. S&P maintains hold.
IBM (IBM) says in regulatory filing that results in January were consistent with its forecast for full-year 2009 EPS of $9.20. The company also said January results signaled growth in services contract signings in first quarter.
Safeway (SWY) posts $0.79, vs. $0.68, fourth quarter EPS on slightly higher same-store sales. Street was looking for $0.81. S&P reiterates hold.
Psychiatric Solutions (PSYS) posts $0.44 vs. $0.42 fourth quarter EPS from cont. ops on 7.8% higher same-facility revenue, 12% higher total revenue. Adjusts 2009 EPS from cont. ops to $2.24-$2.32, below Street view of $2.41, reflecting an increased level of caution regarding the potential impact of the recessionary economic environment. S&P maintains strong buy.
General Motors (GM) posts $9.65 fourth quarter loss, vs. $0.08 EPS (both adjusted), on 34% revenue decline. Incl. special items (totaling $3.7B), co. posted $15.71 fourth quarter loss. Street was looking for a loss of $7.40. Cites dramatic deterioration in global economic and market conditions during the year, declining consumer confidence and a 50-year low in per-capita auto sales in the U.S. GM also anticipates receiving a "going concern" opinion from its auditors in the 2008 10-K.
JPMorgan Chase & Co. (JPM) reportedly is close to selling Bear Wagner Specialists LLC to Barclays Capital.
Sears Holdings (SHLD) posts better-than-expected $2.94 (excluding certain significant items) fourth quarter EPS, vs. $3.17, on 8.3% lower aggregate domestic same-store sales, 12% total revenue drop. Street was looking for $2.68.
Integrys Energy Group (TEG) posts $0.33, vs. $1.11, fourth quarter GAAP EPS on 12% lower revenue, a 20% drop in energy prices, and higher operating expenses. Notes fourth quarter EPS from continuing operations was $0.27, vs. $1.19. For 2009, sees $2.51-$2.66 GAAP EPS, $2.53-$2.68 EPS from continuing operations.
Fluor (FLR) posts $1.04, vs. $1.41, fourth quarter EPS as inclusion of year ago's $0.68 benefit from final settlement of IRS income tax audit for certain prior years offset 29% revenue rise. Street was looking for EPS of $0.92.
Says fourth quarter operating profit rose 30% primarily due to growth in the Oil & Gas segment. Maintains previously issued 2009 EPs guidance of $3.90-$4.20. S&P reiterates buy.
Checkpoint Systems (CKP) posts $0.12, vs. $0.52, fourth quarter non-GAAP EPS on 9.7% lower revenues. Says customers further reduced their spending and it experienced the impact of significant foreign currency fluctuations. Says based on an assessment of current market conditions, assumption that market conditions will not change significantly for remainder of the year, expects 2009 non-GAAP EPS to be in the range of $0.65-$0.85, revenues in the range of $780-$820 million.
Limited Brands (LTD) posts $0.68, vs. $0.94, fourth quarter adjusted EPS on 10% same-store sales drop, 7.3% total adjusted sales drop. Sees first quarter loss of $0.07-$0.12, fiscal year 2010 EPS of $0.60-$0.85.
Warnaco Group (WRC) posts $0.29, vs. $0.42, fourth quarter non-GAAP EPS excluding items on 4% higher net revenues (on constant currency basis). Street was looking for $0.15. Expects 2009 adjusted EPS to be in the range of $2.40-$2.66, net revenues to fall 2%-5%, on a constant currency basis.
Salesforce.com (CRM) posts $0.11, vs. $0.06, fourth quarter GAAP EPS on 34% higher revenue. Sees about $0.10-$0.11 first quarter GAAP EPS on about $304 million revenue; sees $0.54-$0.55 fiscal year 2010 GAAP EPS, updates revenue guidance to $1.30-$1.33 billion. Caris says co.'s cash flow from ops could be flat year-over-year at about $230 million; believes this will weight on shares.
King Pharmaceuticals (KG) posts $0.24, vs. $0.46, fourth quarter EPS (excluding items) on 35% revenue decline. Street was looking for $0.23. Says results excl. special charge of $590 million for acquired in-process research and development in connection with its acquisition of Alpharma Inc.
Ansys (ANSS) posts $0.50, vs. $0.44, fourth quarter non-GAAP EPS on 29% revenue rise. Posts $0.34 vs. $0.36 fourth quarter GAAP EPS. Street was looking for $0.44. Sees $0.33-$0.39 first quarter non-GAAP EPS on $122M-$130M revenue, $1.54-$1.85 fiscal year 2009 EPS on $530-$590 million revenue.
Natus Medical (BABY) posts $0.22, vs. $0.12, fourth quarter EPS on 27% revenue rise. Sees first quarter revenue of $38 million and EPS of $0.06-$0.08; 2009 revenue of $166-$170 million and EPS of $0.57-$0.61.
Flowserve (FLS) posts $2.30, vs. $1.67, fourth quarter EPS on 5.4% higher sales. The company reaffirms 2009 EPS target of $6.75-$7.50, including the impact of up to about $0.50 in realignment costs.
Boyd Gaming (BYD) posts $0.13, vs. $0.39, fourth quarter adjusted EPS on 12% revenue decline. Street was looking for $0.13.