EBay (EBAY) posts $0.43, vs. $0.34 a year ago, second quarter non-GAAP EPS on 20% revenue rise. Non-GAAP operating margin decreased to 31.9% primarily due to EBAY's faster growing, lower-margin businesses, such as PayPal and Skype. Sees 2008 revenue of $8.8-$9.05 billion, non-GAAP EPS of $1.72-$1.77. For third quarter, sees revenue of $2.1-$2.15 billion, non-GAAP EPS of $0.39-$0.41. Thomas Weisel, Goldman reportedly downgrade.
JPMorgan Chase & Co. (JPM) posts $0.54, vs. $1.20 a year ago, second quarter EPS on 2.7% revenue drop. Street was looking for $0.44. Notes effect of merger-related items amounting to net loss of $540 million [after-tax] related to acquisition of Bear Stearns Cos, which closed on May 30, 2008. S&P maintains strong buy.
Fannie Mae (FNM) rises 1.68 to 10.93 after Fitch Ratings affirms FNM's long-term Issuer Default Ratings [IDR] at 'AAA+'. Fitch also downgraded FNM's prfd stock rating to 'A+' from 'AA-'. Fitch said today's affirmation of FNM's long-term IDR and sr. deb rating reflect the high probability of external support becoming available and the co.'s importance to the U.S. housing market. S&P upgrades to sell from strong sell.
Freddie Mac (FRE) rises 1.50 to 8.33 after Fitch Ratings affirms FRE's long-term Issuer Default Rating [IDR] at 'AAA.' Also, Fitch places FRE's 'A+' prfd stock on Rating Watch Negative. Fitch said the affirmation of FRE's long-term IDR, sr. debt rating reflects high probability of external support, co.'s importance to US housing market. S&P upgrades to sell from strong sell.
Safeway (SWY) is down 3.23 to 26.78 after SWY posts $0.53 vs. $0.49 Q2 EPS on 1% higher identical-store sales [adj. to exclude estimated impact of the Easter holiday shift]. S&P says Q1 rise in identical-store sales below its 2% growth forecast; reiterates buy.
Bank of New York Mellon (BK) posts $0.26, vs. $0.62, second quarter GAAP EPS from continuing operation, which includes charges, writedown of certain investment securities. S&P cuts estimate, target, maintains hold.
ValueClick (VCLK) is down 2.76 to 11.01 after VCLK cuts $166-$170 million second quarter revenue guidance to $163-$164 million, raises $0.15-$0.16 EPS guidance to $0.17-$0.18. Notes expense management initiatives in Q2 resulted in profitability above previously-issued guidance. No longer sees seasonal strength in ad spending it typically sees in the second half. Cuts $730-$745 million 2008 revenue guidance to $655M-$675M, $0.81-$0.83 EPS to $0.69-$0.71. S&P cuts estimates, but reiterates buy. Citigroup downgrades to hold.
BlackRock (BLK) posts $2.05, vs. $1.69, second quarter EPS on 26% revenue rise. Says Merrill Lynch (MER) has decided not to sell any of its stake in the company. S&P maintains hold.
Nokia (NOK) posts 0.36, vs. 0.32 a year ago, second quarter EPS [excluding special items] on 4.5% sales rise.
