Ford Motor (F) says it is cutting North American production for the rest of the year as high gas prices and the weak economy depress its sales. The auto maker also warned it expects to break even in 2009, scaling back its goal of returning to profitability by that time, reports the AP.
Calpine (CPN) says it received an unsolicited proposal from NRG Energy (NRG) regarding a potential combination between CPN and NRG. Under the proposed deal, NRG would swap 0.534 nrg share for each CPN share.
Moody's (MCO) says it recognizes the seriousness of questions raised by yesterday's Financial Times article concerning the analytical models and methodologies used in its European constant-proportion debt obligation (CPDO) ratings process. Says it has retained law firm of Sullivan & Cromwell and initiated a thorough external review of its European CPDO ratings process.
A nonprofit drug safety group is raising concerns about serious side effects newly linked to Pfizer's (PFE) popular smoking-cessation medicine, Chantix, casting a pall over a drug already dogged by psychiatric issues and focusing the spotlight anew on the Food and Drug Administration's monitoring capability: WSJ.
NetApp (NTAP) posts $0.38, vs. $0.30, fourth quarter non-GAAP EPS on 17% revenue rise. Forecasts $0.20-$0.23 first quarter non-GAAP EPS. Reiterates $1.40-$1.46 non-GAAP fiscal year 2009 EPS forecast. S&P notes fourth quarter EPS below its estimate, cuts fiscal year 2009 estimate, reiterates hold.
Limited Brands (LTD) posts better-than-expected $0.11, vs. $0.13, first quarter non-GAAP EPS on 8% lower same-store sales, 16% lower revenue. Notes first quarter fiscal year 2009 non-GAAP EPS included a gain of $0.24 from the sale of a non-core joint venture, partially offset by an impairment charge of $0.06. Expects second quarter EPS to be $0.16-$0.20 vs. $0.20 last year; for fiscal year 2009 sees EPS of $1.38-$1.58, excluding the first quarter one-time items.
AnnTaylor Stores (ANN) posts $0.43, vs. $0.46, first quarter GAAP EPS on 4.3% lower same-store sales.
SLM Corp. (SLM) plans to continue to make federally guaranteed student loans, ending fears the company might join the recent exodus from a market rocked by the credit crisis: WSJ.
S&P expects BCE (BCE) to open lower, as the Quebec Court of Appeals ruled in favor of select bondholders who challenged BCE's pending private equity deal, arguing that bondholders were treated unfairly by the offer price. S&P maintains hold.
Longs Drug Stores (LDG) posts preliminary $0.63, vs. $0.42, first quarter EPS from continuing operations on 1% same-store sales rise, 8.5% total revenue rise. Says its goal is to achieve $3.02-$3.12 fiscal year 09 EPS from continuing operations.
Blue Coat Systems (BCSI) posts $0.33, vs. $0.15, fourth quarter non-GAAP EPS on 62% revenue rise. Street was looking for $0.40.
Computer Sciences (CSC) posts $1.15 (including items), vs. $1.44, first quarter EPS despite 11% revenue rise. Sees first quarter revenue of $4.25-$4.40 billion, up 11%-15% year-over-year and EPS of $0.70-$0.80, reflecting adverse comparative impacts from several non-operating items. Sees fiscal year 2009 revenue growth, excluding any acquisitions, of 6%-8% and EPS of $4.20-$4.40.
Jackson Hewitt Tax Service (JTX) says it prepared 5.3% fewer tax returns in fiscal year 2008 vs. a year ago; excluding Economic Stimulus Rebate tax returns, posts 7.1% drop vs. previous forecast for a 5%-6% drop. Sees fiscal year 2008 revenues slightly below the low end of its $282-$292 million forecast range and adjusted EPS of $1.34-$1.39, vs. previous guidance of $1.48-$1.60.
Zale (ZLC) posts $0.42 third quarter loss, vs. $0.10 loss, as higher SG&A costs offset 5.8% higher same-store sales.