Intel (INTC) posts $0.25, vs. $0.28 a year ago, first quarter GAAP EPS as charges offset 9.3% revenue rise. Sees $9-$9.6 billion second quarter revenue, gross margin of 56% plus or minus a couple of points. Estimates restructuring and asset impairment charges of about $250 million. The chip maker sees 2008 gross margin of 57%, plus or minus a few points, with R&D spending of about $6 billion. CEO Paul Otellini reportedly says global market environment is "solid" and that demand was healthy across all segments. S&P maintains hold.
Washington Mutual (WM) posts $1.40 first quarter loss per share, vs. $0.86 EPS a year ago, reflecting a higher level of provisioning as steep declines in home values led to further deterioration in mortgage credit markets. First quarter 2008 loan loss provision totaled $3.511 billion, vs. year ago's $234 million. Efficiency ratio fell to 57.49% from 58.13%. WM also announces that it has closed the previously announced $7 billion capital issuance to TPG Capital and to other investors. S&P keeps hold, widens loss estimate on higher loss provision assumptions. Bear Stearns keeps underperform, cuts estimates.
JPMorgan Chase & Co. (JPM) posts $0.68, vs. $1.34, first quarter EPS on 9.3% revenue drop. First quarter 2008 EPS better than First Call estimate. JPM expects economic environment to continue to be weak, capital markets to remain under stress. S&P maintains buy.
WSJ reports that Merrill Lynch (MER) will announce a further $6-$8 billion of asset writedowns in its quarterly results this week, citing a person familiar with the matter. WSJ also notes these writedowns would take the total since October to more than $30 billion and lead to a third straight quarterly net loss at MER.
Wells Fargo & Co. (WFC) posts $0.60, vs. $0.66 a year ago, first quarter EPS as $2 billion pre-tax provision for credit-losses offsets higher net interest income. Current quarter EPS is above Street estimates.
Blackrock (BLK) posts lower-than-expected $1.82. vs. $1.48 a year ago, first quarter EPS on 29% revenue rise.
Coca-Cola Company (KO) posts $0.64, vs. $0.54 a year ago, first quarter EPS (both include charges) on 29% rise in operating revenue. Says worldwide unit case volume rose 6%. Consensus estimate was $0.62.
CSX (CSX) posts $0.85, vs. $0.52 a year ago, first quarter EPS (including items) on 12% revenue rise. Says it is now targeting upper end of its previously announced 2008 EPS guidance of $3.40-$3.60. With 2007 as the baseline, says it's confident it can achieve compound annual growth in operating income of 13%-15%, 18%-21% compound annual EPS growth before impact of share repurchases through 2010. Targets operating ratio in low-70's, free cash flow before dividends exceeding $1 billion in 2010. S&P reiterates buy.
Linear Technology (LLTC) posts $0.49, vs. $0.37 a year ago, third quarter non-GAAP EPS on 17% higher revenue. Sees revenue and income before taxes growing 1%-5% sequentially in the fourth quarter.
According to unconfirmed reports in French newspapers and the WSJ, France Telecom (FTE) is considering a bid for Swedish telco Telia Sonera. S&P keeps buy on FTE, but notes FTE's discount to Telia Sonera on an enterprise value/EBITDA basis makes deal completion challenging, and that a deal would likely constrain FTE's dividend policy.
J.M. Smucker (SJM) raises its quarterly dividend to $0.32 from $0.30 per common share.
Illinois Tool Works (ITW) posts $0.57 (including charges), vs. $0.68, first quarter EPS from continuing operations as higher expenses offset 11% revenue rise. Posts $0.79 first quarter EPS (excluding impairment and European tax charges). Sees $3.35-$3.49 2008 EPS, which assumes total company revenue growth in range of 8%-12%.
Abbott Laboratories (ABT) posts $0.60, vs. $0.45, first quarter EPS on 14% revenue rise. Sees second quarter EPS of $0.78-$0.80, confirms 2008 EPS guidance of $3.20-$3.25, both excluding specified items.
St. Jude Medical (STJ) posts $0.53, vs. $0.41, first quarter EPS on 14% sales rise, strong ICD business. Raises 2008 EPS guidance to $2.15-$2.20, which assumes the federal research and development tax credit is approved and the benefit is recognized during 2008. S&P maintains buy.
Johnson Controls (JCI) posts $0.48, vs. $0.44 (adjusted), second quarter EPS from continuing operations on 11% higher sales. Confirms guidance for fiscal year 2008 EPS from continuing operations of $2.45-$2.50 (an increase of about 18% from fiscal year 2007), increases revenue forecast to $39 billion from $38 billion. Sees 12%-15% rise in third quarter EPS to $0.74-$0.76, excluding potential impact on vehicle production of a prolonged labor strike of a supplier to a North American automotive customer.