(Source: Business Week)
General Electric (GE) cuts $0.50-$0.54 third quarter EPS guidance to $0.43-$0.48, reflecting "unprecedented" weakness and volatility in financial services markets. Does not expect difficult conditions in financial services markets to improve in near future. Cuts $2.20-$2.30 2008 EPS guidance to $1.95-$2.10. Suspends stock buyback. S&P Ratings Services affirms its 'AAA' long-term rating. S&P Equity Research downgrades to hold from buy.
Nike (NKE) posts better-than-expected $1.03, vs. $1.12 a year ago, first quarter EPS as absence of year ago $0.20 per share tax benefit offset 17% revenue rise, wider gross margin. Notes changes in forex rates increased revenue growth by 7 percentage points. Street was looking for $0.92. Says worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2008 through January 2009, totaled $6.8 billion, 10% higher than such orders reported for year ago period. S&P reiterates buy.
Medtronic (MDT) agrees to buy CryoCath Technologies.
Capital One Financial (COF) falls 3.52 to 48.97 after the companyF announces the pricing of a public offering of 14 million shares at $49 per share.
Discover Financial Services (DFS) posts $0.37, vs. $0.51 a year ago, third quarter EPS from continuing operations as provision for loan losses increased 80%, due to higher net charge-offs and a $113 million charge to increase loan loss reserves related to owned loan growth in the quarter, as well as a higher reserve rate.
Goodyear Tire & Rubber (GT) says it plans to draw $600 million from its existing U.S. revolving credit facility due to a temporary delay in its ability to access $360 million of cash currently invested with The Reserve Primary Fund. Says the funds also will be used to support seasonal working capital needs and to enhance co.'s cash liquidity position.
Vail Resort (MTN) falls 3.41 to 36.99 after MTN posts wider-than-expected $0.29 fourth quarter loss, vs. $0.88 loss a year ago, on sharply higher revenues. Says severity of the current downturn could have impact on amount and timing of revenue from its projects, which would affect projections for project profit co. previously disclosed. Based on the company's current estimates, it expects net income of $60-$76 million, $66-$82 million excluding stock-based compensation expense.
China Sunergy (CSUN) announces it has entered into a sever-year sales agreement with Wuxi Guofei Green Energy Source Co. Ltd., a leading Chinese solar energy company.
Cherokee International (CHRK) agrees to be acquired by Lineage Power Holdings Inc. in deal valued at about $105 million. Terms: CHRK holders to get $3.20 per share in cash.
CRA International (CRAI) posts $0.39, vs.
