Fannie Mae (FNM) posts $2.57 first quarter loss per share, vs. $0.85 EPS a year ago, despite 41% rise in net interest income and 38% revenue rise. It says results were hurt by increases in mortgage delinquencies, defaults and foreclosures, home price declines. Has substantially increased loss reserves to reflect credit losses that it believes have been incurred, will be recognized over time in its charge-offs. Says combined loss reserves were $5.2 billion as of Mar. 31, vs. $930 million a year ago. Reportedly plans to cut dividend to $0.25 in the third quarter; it plans to raise $6 billion in new capital through public securities offerings.
Aquest Systems Corp. and The Gores Group, LLC jointly announce that they have withdrawn their proposal to potentially acquire Asyst Technologies (ASYT) at a significant premium to ASYT's current share price. The proposal was withdrawn after ASYT repeatedly refused to enter into discussions with Aquest and Gores.
Performance Food Group (PFGC) posts $0.12, vs. $0.20, first quarter EPS (including items) despite 9.3% revenue rise. On an adjusted basis, posts $0.25, vs. $0.20, first quarter EPS. Maintains previously issued guidance for 2008. Also announces that George Holm, president and CEO of Vistar Corp., will be the CEO of the combined company that will be known as Performance Food Group, effective upon the completion of the companies' pending merger. Steven Spinner, PFGC's current president and CEO, has announced his decision to resign effective upon completion of the merger. S&P maintains hold.
Scotts Miracle-Gro (SMG) posts $1.19, vs. $1.40, adjusted second quarter EPS on 3.6% sales decline, narrowed gross margin. Cites slow start to the lawn and garden season due to cold and wet weather in March. Also says recent product recalls resulted in a pre-tax charge of $31 million during the quarter. While that charge was excluded from adjusted earnings, the recalls had a significant impact on its reported net income. Sees fiscal year 2008 adjusted EPS of $2.00-$2.20. S&P keeps hold.
Legg Mason (LM) posts $1.81 fourth quarter loss per share, vs. $1.19 EPS a year ago, on 6.4% revenue drop, two non-cash charges. To offer 20 million equity units, each with a stated amount of $50, for an aggregate stated amount of $1 billion.
McKesson (MCK) posts $1.04, vs. $0.85, fourth quarter EPS from continuing operations on 9% sales rise. Sets additional $1 billion stock buyback. Raises quarterly dividend to $0.12 from $0.06. Sees fiscal year 2009 EPS of $3.75-$3.90, vs. current consensus view of $3.78.
Teva Pharmaceutical Industries (TEVA) posts $0.18, vs. $0.42, first quarter EPS as charge of $382 million for R&D in-process resulting from the acquisition of CoGenesys offset 24% sales rise.
NYSE Euronext (NYX) posts $0.87, vs. $0.43, first quarter GAAP EPS on 84% revenue rise.
Qwest Communications (Q) posts $0.09, vs. $0.12, first quarter EPS on 1.4% revenue decline. Says results reflect impact of industry consolidation and long-distance pricing pressures in its Wholesale Markets business.
Gladstone Capital (GLAD) posts $0.33, vs. $0.47, second quarter net investment income per share. Says the latest second quarter results were hurt by issuance of new shares, while proceeds of these offerings weren't fully invested in income producing investments for entire quarter ended Mar. 31, 2008. Also says it recorded a net decrease in net assets of $0.61 per share for second quarter ended Mar. 31, 2008, as compared with a net increase in net assets reported for the year-ago quarter of $0.33 per share.
Emerson Electric (EMR) Posts $0.75 vs. $0.61 second quarter EPS from cont. ops on 12% sales rise. Raises fiscal year 08 EPS guidance to $3.00-$3.10 on sales of $25B.
Anadarko Petroleum (APC) posts $0.61, vs. $3.70, first quarter net EPS on 43% lower revenue. Notes first quarter 2008 net EPS include certain items typically excluded by the investment community in published estimates. In total, these items reduced net EPS by about $0.94 on an after-tax basis. first quarter 2007 net EPS was inflated by $3.56 in gains from asset sales.
Human Genome Sciences (HGSI) posts $0.35 first quarter loss per share, vs. $0.38 loss, on 33% higher revenue. The company also said it now expects to have the first Phase 3 data for LymphoStat-B available by mid-2009 and all Phase 3 data available in fall 2009.
Career Education (CECO) posts $0.18, vs. $0.31, first quarter EPS on flat revenue, goodwill and asset impairment charges, severance and stay bonus expenses, higher depreciation and amortization expense.