(Source: Business Week)
Wells Fargo (WFC) posts $0.49, vs. $0.64 a year ago, third quarter EPS on 21% higher net interest income, 5.4% revenue rise. The bank says it saw a tremendous inflow of deposits in the latter part of the quarter, especially at the end of September, reflecting what it believes is a significant flight to quality. It says the Wachovia (WB) merger is on track to close at the end of the fourth quarter.
JPMorgan Chase & Co. (JPM) posts $0.11, vs. $0.97 a year ago, third quarter EPS on 8.5% revenue drop. Notes results incl. estimated losses of $640 million [after-tax], or $0.18 per share for Washington Mutual merger-related items. Also notes markdowns on mortgage trading positions, leveraged loans, higher credit costs due to continued deterioration in its home-lending portfolio. S&P reiterates buy.
Intel (INTC) posts $0.35, vs. $0.30, third quarter EPS on slightly higher sales. Street was looking for $0.34. Sees fourth quarter revenue of $10.1-$10.9 billion, with 59% gross margin, plus or minus a couple of points. S&P maintains buy.
Coca-Cola Company (KO) posts $0.81, vs. $0.71, third quarter EPS on 9.1% revenue rise. Posts $0.83 third quarter 2008 EPS on comparable basis.
Alcoa (AA) - Fitch Ratings lowers AA's Issuer Default Rating [IDR] to 'BBB' from 'BBB+', its senior unsecured debt to 'BBB' from 'BBB+', its $3.25B Revolving Credit Facility to 'BBB' from 'BBB+', and its preferred stock to 'BBB-' from 'BBB'. The Rating Outlook is Stable. Cites higher-than-expected debt levels and financial leverage.
Linear Technology (LLTC) posts $0.48, vs. $0.40, first quarter GAAP EPS on 10% revenue rise. It says during the latter part of the first quarter and especially through early October, the company began to see a decrease in new order bookings across all of its end-markets. Believes the current credit crisis and related economic uncertainty have begun to affect the semiconductor industry. Sees second quarter revenue decline of 10%-20% sequentially. FBR Capital cuts target.
Rio Tinto PLC (RTP) CEO Tom Albanese says, "In the near term, the Chinese economy is pausing for breath. China is not completely insulated from an OECD recession and we will see an impact on Chinese exports." Adds it now seems clear that any bounce in net demand from China will be delayed until next year.
Genentech (DNA) posts $0.81, vs. $0.73, third quarter non-GAAP EPS on 17% rise in operating revenue. Says U.S. product sales rose 14%. Avastin sales rose 18%, Rituxan +15%, Herceptin +15%. Sees 2008 non-GAAP EPS of $3.40-$3.45, narrowed from previous view of $3.40-$3.50 due primarily to the cost of the employee retention programs, which is estimated to be $0.08 per share in 2008. Cowen upgrades to outperform from neutral.
