Wall Street Breakfast: Must-Know News

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 |  Includes: AAPL, ABX, AMD, APC, BAC, BLK, BSAC, CFC, CLF, CSR, CTL, DHI, DIA, DIVX, DSCM, DTEGY, EL, EMR, FNMA, FTEK, GAP, HSH, INTC, JOE, JOY, JRCCQ, KND, LAZ, LM, MCK, MDT, MGM, MRK, MSFT, NAV, NYX, PFG, QQQ, RRD, S, SPB, SPY, TAP, TEVA, TI, TMUS, TWX, UBS, UFS, VM, VMC, VOD, WTR, WTW, WWE, WY, YHOO
by: SA Eli Hoffmann
SA Eli Hoffmann
Seeking Alpha's flagship daily business news summary, gives you a rapid overview of the day's key financial news. It is published before 7:00 AM ET every market day and delivered to over 900,000 email subscribers.
  • UBS swings to loss. UBS (NYSE:UBS) reported a Q1 net loss of 11.535 billion Swiss francs ($11B). It said markets remain challenging, but that it would not need to raise more capital. UBS plans to cut about 5,500 jobs by mid-2009, including a 26% reduction in the size of its fixed-income unit. UBS said it is selling $15B in Alt-A mortgage-backed assets to BlackRock (NYSE:BLK). Shares fell 4.3% in early Zurich trading.
  • Miller: Microsoft isn't finished. Legg Mason's (NYSE:LM) Bill Miller thinks Microsoft (NASDAQ:MSFT) will come back to the table with another offer for Yahoo (NASDAQ:YHOO). "I'm more puzzled by Microsoft's not going up to $37 than Yahoo's wanting to walk away," he said. Legg Mason is Yahoo's second largest stakeholder. Other shareholders were less generous in their assesment of Yahoo chief Jerry Yang, who said yesterday he's still open to a higher offer from Microsoft. Yahoo shares fell 15% yesterday to $24.37. Microsoft was up down 0.55% to $29.08.
  • Microsoft, AOL talking. Sources say Microsoft (MSFT) is in preliminary talks with Time Warner (NYSE:TWX) about buying AOL after abandoning its $47.5B Yahoo (YHOO) bid. Meanwhile Yahoo continues to negotiate with AOL about a possible merger.
  • Vodafone customers to get iPhone option. Vodafone (NASDAQ:VOD) will sell Apple's (NASDAQ:AAPL) iPhone in ten markets: Australia, the Czech Republic, Egypt, Greece, Italy, India, Portugal, New Zealand, South Africa and Turkey. Media reports say Telecom Italia (NYSE:TI) will bring the iPhone to Italy later this year.
  • BofA to stay the course with Countrywide. Sources say Bank of America (NYSE:BAC) plans to acquire Countrywide (CFC) without trying to reduce its $4.1B.
  • Drug failure sparks layoffs at Merck. Merck (NYSE:MRK) said it will reduce its U.S. sales force by 1,200 in order to trim costs. The move comes on the heels of a surprise rejection of Merck's experimental cholesterol drug Cordaptive. The move mirrors an identical set of layoffs at Wyeth (NYSE:WY).
  • Navistar lands Army deal. Navistar (NAVZ.PK) was awarded a $1.28B contract from the U.S Army for trucks to support rebuilding efforts in Afghanistan and Iraq. The three-year contract is for 7,072 medium tactical vehicles and parts.
  • Sprint spinoff. Three years into its $35B takeover of Nextel, Sprint (NYSE:S) is now mulling selling or spinning-off the troubled unit. Complicating the issue is yesterday's news that Deutsche Telecom (DT) is thinking of making a bid for Sprint. A divestment of Nextel would be a dramatic acknowledgement of the acquisition's failure.
  • Bernanke pushes homeowner help. Fed Chairman Ben Bernanke urged the government and mortgage lenders to double down with their assistance to homeowners facing foreclosures. "Conditions in mortgage markets remain quite difficult, and mortgage delinquencies have climbed steeply," he said. "Realistic public- and private-sector policies must take into account the fact that traditional foreclosure-avoidance strategies may not always work well in the current environment." The Treasury meets today with banking executives to discuss a voluntary program that would speed up the ability of homeowners to modify their mortgages. Attendees include CFC, BAC, JPM, FNM and FRE.
  • Crude oil should reach $150-200 a barrel over the next couple years, Goldman analysts say. Oil hit a new high of $121/barrel in overnight trading.
  • AMD broadens case against Intel. AMD (NASDAQ:AMD) filed an expanded list of antitrust allegations against Intel (NASDAQ:INTC) that singles out Intel dealings with Dell (NASDAQ:DELL), International Business Machines (NYSE:IBM) and Hewlett-Packard (NYSE:HPQ). AMD says it can document Intel "pays people not to deal with AMD."

Earnings: Monday After Close

  • Anadarko Petroleum (NYSE:APC): Q1 EPS of $1.55 beats consensus of $1.22. Revenue of $2.98B vs. consensus of $3.13B.
  • Banco Santander (NYSE:SAN): Q1 EPS of $0.95 vs. consensus of $0.91.
  • China Security & Surveillance (NYSE:CSR): Q1 EPS of $0.32 in-line. Revenue of $71.8M vs. consensus of $66.65M. Sees Q2 EPS of $0.36-0.38, in-line, and revenue of $85-87M vs. consensus of $81M.
  • DivX (DIVX): Q1 EPS of $0.18 beats consensus of $0.14. Revenue of $25M in-line. Sees 2008 EPS of $0.52-0.58, up from $0.44-0.52 vs. consensus of $0.47. Sees Q2 EPS of $0.09-0.11 vs. consensus of $0.07.
  • Drugstore.com (NASDAQ:DSCM): Q1 EPS of -$0.03 just misses consensus of -$0.02. Revenue of $120.6M in-line.
  • Kindred Healthcare (NYSE:KND): Q1 EPS of $0.39 beats consensus of $0.26. Revenue of $1.06B vs. consensus of $1.03B. Sees Q2 EPS of $0.29-0.34, in-line. Sees full-year EPS of $1.40-1.50 vs. consensus of $1.34.
  • McKesson (NYSE:MCK): FQ4 EPS of $1.05 beats consensus of $1.00. Revenue of $26.2B vs. consensus of $26.83B. Sees full-year 2009 EPS of $3.75-3.90, better than consensus of $3.78.
  • Principal Financial (NYSE:PFG): Q1 EPS of $0.92 misses consensus of $0.98. Revenue of $2.64B vs. consensus of $2.87B.
  • Virgin Mobile (VM): Q1 EPS of $0.07 just misses consensus of $0.08. Revenue of $304M vs. consensus of $317M. Sees Q2 EPS of -$0.01 to $0.03, short of consensus of $0.15, and revenue of $285-295M vs. consensus of $321M.
  • Weight Watchers (NYSE:WTW): Q1 EPS of $0.72 misses consensus of $0.75. Revenue of $437M vs. consensus of $444M. WTW raised the bottom end of its full-year EPS guidance by $0.05 to $2.85-$3.00, better than consensus of $2.90.

Earnings: Tuesday Before Open

  • Aqua America (NYSE:WTR): Q1 EPS of $0.11 misses consensus of $0.15. Revenue of $139M vs. consensus $146M.
  • Barrick Gold (NYSE:ABX): Q1 EPS of $0.62 beats consensus of $0.60. Revenue of $1.96B vs. consensus of $2.24B.
  • Cleveland Cliffs (NYSE:CLF): Q1 EPS of $0.60 misses consensus of $1.00. Revenue of $494M vs. consensus of $507M.
  • Covidien (COV): FQ2 EPS of $0.66 beats consensus of $0.59. Revenue of $2.43B vs. consensus of $2.37B.
  • Domtar (NYSE:UFS): Q1 EPS of $0.05 beats consensus of $0.04. Revenue of $1.66B in-line.
  • D. R. Horton (NYSE:DHI): FQ2 EPS of -$4.14 misses consensus of -$0.43. Revenue of $1.62B vs. consensus $1.36B.
  • Emerson Electric (NYSE:EMR): FQ2 EPS of $0.69 misses consensus of $0.71. Revenue of $6.02B vs. consensus of $6.1B. raises full-year EPS outlook to $3.00-3.10 vs. consensus of $3.01.
  • Estee Lauder (NYSE:EL): FQ3 EPS of $0.46 just misses consensus of $0.47. Revenue of $1.88B in-line. Sees full-year EPS of $2.34-$2.40 in-line.
  • Fannie Mae (FNM): Q1 EPS of -$2.57 misses consensus of -$0.81. Revenue of $3.78B vs. consensus of $1.26B. Fannie reduced its dividend to $0.25, and said it plans to raise $6 billion.
  • Fuel-Tech (NASDAQ:FTEK): Q1 EPS of $0.07 misses consensus of $0.09. Revenue of $20.5M vs. consensus of $22.3M. Sees full-year revenue of $88-93M vs. consensus of $92.7M.
  • Great Atlantic & Pacific Tea (GAP): FQ4 EPS of -$1.40 misses consensus of -$0.65. Revenue of $2.2B in-line.
  • James River Coal (JRCC): Q1 EPS of -$0.78 misses consensus of -$0.50. Revenue of $138M vs. consensus of $140M.
  • Joy Global (JOYG): lowers full-year EPS guidance to $2.96-3.22 from $3.15-3.45 vs. consensus of $3.41.
  • Lazard (NYSE:LAZ): Q1 EPS of $0.14 misses consensus of $0.48. Revenue of $350M vs. consensus $450M.
  • Legg Mason (LM): FQ4 EPS of -$1.81 misses consensus of -$0.27. Revenue of $1.07B vs. consensus of $1.12B.
  • MetroPCS (PCS): Q1 EPS of $0.11 misses consensus of $0.14. Revenue of $662M in-line.
  • MGM Mirage (NYSE:MGM): Q1 EPS of $0.40 misses consensus of $0.43. Revenue of $2.06B vs. consensus of $1.9B.
  • Molson Coors (NYSE:TAP): Q1 EPS of $0.32 beats consensus of $0.28. Revenue of $1.36B vs. consensus of $1.31B.
  • NYSE Euronext (NYSE:NYX): Q1 EPS of $0.91 beats consensus of $0.83. Q1 revenue of $1.29B vs. consensus of $891M.
  • R.R. Donnelley (NASDAQ:RRD): Q1 EPS of $0.69 in-line. Revenue of $2.99B in-line. Sees full-year EPS of $3.08-3.15 vs. consensus of $3.13.
  • Qwest (NYSE:Q): Q1 EPS of $0.09 just misses consensus of $0.10. Revenue of $3.39B in-line.
  • Saint Joe Co. (NYSE:JOE): Q1 EPS of $0.40 beats consensus of $0.18. Q1 revenue of $117M vs. consensus $81M.
  • Sara Lee (SLE): FQ3 EPS of $0.30 beats consensus of $0.24. Revenue of $3.2B vs. consensus $3.29B. Sees FQ3 EPS of $1.13-1.17, better than consensus of $1.00.
  • Spectrum Brands (SPC): FQ2 EPS of -$0.14 beats consensus of -$0.23. Revenue of $647M vs. consensus $454M.
  • Tenet Healthcare (NYSE:THC): Q1 EPS of $0.04 beats consensus of $0.01. Revenue of $2.37B in-line.
  • Teva Pharmaceutical (NYSE:TEVA): Q1 EPS of $0.64 just beats consensus of $0.63. Revenue of $2.57B in-line.
  • Vulcan Materials (NYSE:VMC): Q1 EPS of $0.13 misses consensus of $0.56. Revenue of $817M vs. consensus of $905M. Sees full-year EPS of $3.85-4.35, short of consensus of $4.46.
  • Vornado (NYSE:VNO): Q1 EPS of $2.47 beats consensus of $2.36. Revenue of $653M vs. consensus of $744M.
  • World Wrestling (NYSE:WWE): Q1 EPS of $0.27 beats consensus of $0.26. Revenue of $163M vs. consensus $132M.

Today's Markets

  • In Asia, the Hang Seng gained 0.3% to 26,262. Shanghai fell 0.73% to 3,733.5. BSE Sensex was down 0.67% to 17,373. Nikkei was closed.
  • European markets fell Tuesday. FTSE -0.93% to 6,157. CAC -0.82% to 5,022. DAX -1.05% to 6,978.
  • U.S. futures are down just before the open. Dow -0.51% to 12,900. S&P -0.59% to 1,400. Nasdaq -0.34% to 1,973.5.
  • Gold is up 0.26% to $876. Oil is up 0.33% to $120.36 after hitting an overnight high of just under $121.

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