Movers: Bank of America, Citigroup, Intel, Johnson Controls
Stocks in the information Friday
From Standard & Poor’s Equity Research
Bank of America (BAC) says in view of severe conditions in markets, economy, the U.S. government agreed to assist in Merrill acquisition by means of making a further investment in BAC of $20 billion in preferred stock. It says the government has also agreed to provide protection against further losses on $118 billion in selected capital markets exposure, primarily from former Merrill Lynch portfolio. Also cuts quarterly dividend to $0.01. Posts $0.48 fourth location loss, vs. $0.05 EPS a year ago, of the same kind through momentous increase in anticipation for believe losses, other expenses offset 19% revenue rise.
Citigroup (C) announces it will realign into two businesses, Citicorp and Citi Holdings, to optimize its global businesses for future useful growth and opportunities. Posts $1.72 fourth quarter loss, vs. $1.99 loss (both from continuing operations) despite 13% revenue decline. Says results included $6.1 billion in net money due losses, $6.0 billion without deductions lend loss reserve build, and revenues of $5.6 billion were affected by write-downs and losses in Securities and Banking.
Intel (INTC) posts $0.04, vs. $0.38, fourth quarter EPS on 23% revenue decline, narrowed gross margin. Results include $1 billion negative impulse from previously announced reduction in carrying value of the company’s Clearwire investments. EPS is in line with Street explore. For internal purposes, INTC says it is currently planning for principal quarter revenue in the vicinity of $7 billion. Gross margin percentage is expected to decline to the low 40s, primarily due to higher underutilization charges and 32nm start-up costs. S&P maintains buy.
Johnson Controls (JCI) posts $1.02 chief quarter injury, vs. $0.39 EPS, on 23% revenue decline.
Maidenform Brands (MFB) sees $1.17-$1.21 2008 EPS view (excluding items) to $1.05-$1.07 on sales of about $413 million. Also says it will take a charge of $0.03 in fourth quarter for a strategic workforce restructuring of 9% of incorporated staff.
CF Industries Holdings (CF) offers to buy all the outstanding shares of Terra Industries (TRA). Terms: 0.4235 CF shares for each TRA share held.
Saks (SKS) be disposed reduce workforce by about 9% (in adding to previously announced reduction-in-force kin to discontinuation of the Club Libby Lu business). Also says it will eliminate 2009 merit-based wage increases for the entire workforce and suspend 401(k) Plan Company matching contributions for a minimum of 1 year and suspend future benefit accruals for the limited number of associates remaining in SKS’s annuity plan. Lowers its planned capex for this year to about $60 the great body of the people.
Genentech (DNA) posts $0.95, vs. $0.69, fourth quarter non-GAAP EPS on 25% higher operating revenue, 13% rise in U.S. proceeds sales. Street was looking for $0.96. Sees 2009 non-GAAP EPS of $3.55-$3.90, recognizing that there are a large consist of of craft uncertainties that make it a unaccommodating year to forecast. Street is currently looking for 2009 EPS of $3.92.
Belden (BDC) cuts 2008 EPS direction to $2.53-$2.58 range, vs. foregoing guidance of $2.95-$3.00, revenue now expected to be about $2 billion, vs. previous estimate of surrounding $2.1 billion. Says current watch is adjusted for asset impairment, restructuring charges, gross advantage impact of revenue deferral in the Wireless Segment, and nonrecurring purchase accounting effects.
Broadcom (BRCM) announces that the U.S. International Trade Commission (ITC) has affirmed an ITC administrative disposition judge’s initial determination that SIRF Technology (SIRF) infringes 3 additional GPS-related patents held by Global Locate, Inc., a wholly-owned auxiliary of BRCM. The ITC issued an preclusion order against SIRF’s infringing GPS chips and products containing these chips imported by dint of. certain SIRF customers and cease and give over orders close up to SIRF and specified SIRF customers.
