Freddie Mac (FRE) shares fall 0.52 to 3.65 after WSJ reports Freddie executives are due to meet with Treasury officials today to discuss the situation and the two sides may explore whether the Treasury could clarify its intentions in a way that would reassure investors. However, Reuters newswire says a Treasury spokeswoman declined to confirm this.
Fannie Mae (FNM) falls 0.73 to 5.28 on news that Fannie's and Freddie's ability to repay $223 billion of bonds due by the end of the quarter may determine whether they can avoid a federal bailout, Bloomberg reported, citing various analysts. Fannie has about $120 billion of debt maturing through Sept. 30, while Freddie has $103 billion.
Hewlett-Packard (HPQ) posts $0.86, vs. $0.71 a year ago, third quarter non-GAAP EPS on 10% revenue rise. Street was looking for $0.83. It sees fourth quarter revenue of $30.2-$30.3 billion, non-GAAP EPS of $1.01-$1.03. Estimates do not reflect the anticipated financial impact of HPQ's acquisition of Electronic Data Systems (EDS), which is expected to be completed in the fourth quarter of fiscal year 2008. S&P reiterates strong buy. Needham upgrades to strong buy from buy.
Verifone Holdings (PAY) sees third quarter revenue of $256-$258 million, representing year-over-year revenue growth of 10%-11% and non-GAAP EPS of $0.34-$0.35; fourth quarter revenue of $260-$268 million and non-GAAP EPS of $0.36-$0.39. It forecasts fiscal year 2009 revenue growth of 10%-15%, non-GAAP EPS of $1.35-$1.55, with EBITDA of $182-$206 million and cash flow of $110-$125 million.
Goldman Sachs and Bernstein reportedly cut estimates on Lehman Brothers (LEH) and other investment banks. Separately, the New York Post reported that LEH's "embattled Chief Executive Dick Fuld nearly struck a deal to raise almost $5 billion from South Korean wealth funds and institutions but the pact disintegrated, according to sources familiar with the matter."
Novatel Wireless (NVTL) sees second quarter revenues of about $89.8 million, vs. $97.4 million in second quarter 2007. Expects GAAP EPS of about breakeven (vs. $0.25 year ago), non-GAAP EPS of $0.03. Also sees third quarter revenue of $80-$85 million, $0.03 loss to breakeven range for bottom-line GAAP results (non-GAAP seen at breakeven to $0.03 EPS range). Piper Jaffray reportedly downgrades to sell from neutral. JP Morgan cuts estimates.
Suntech Power Holdings (STP) posts $0.38, vs. $0.25, second quarter EPADS on 51% revenue rise. Sees third quarter revenues of $570-$580 million, GAAP consolidated gross margin of 22%-23%. Raises $1.9-$2.1 billion 2008 revenue guidance to $2.05-$2.15 billion.
Heelys (HLYS) announces that its Board of Directors rejected Skechers' (SKX) unsolicited proposal to acquire all of the company's outstanding shares for $5.25 per share, saying "the $5.25 offering price does not reflect the value of Heelys."
Analog Devices (ADI) posts $0.44, vs. $0.38, third quarter EPS from continuing operations on 7% revenue rise. Street was looking for $0.45. Sees fourth quarter sequential revenue growth of flat to +3% (6%-9% year-over-year), EPS from continuing operations of $0.44-$0.46. Goldman reportedly removes ADI from Conviction Buy List, but keeps buy rating.
BJ's Wholesale Club (BJ) posts $0.61, vs. $0.55, second quarter EPS on 16% higher same-stores sales (includes gasoline), 18% higher total sales. Raises $2.04-$2.14 fiscal year 2009 EPS guidance to range of $2.10-$2.20. Adds an additional $200 million to stock buyback plan.
STMicroelectronics NV (STM) and Ericsson Telephone (ERIC) announce an agreement to merge Ericsson Mobile Platforms and ST-NXP Wireless into a joint venture. The 50/50 j.v. will have a strong product offering in semiconductors, platforms for mobile applications, will be a supplier to NOKIA, Samsung, Sony Ericsson, LG and Sharp.
Jack Henry & Associates (JKHY) posts $0.28, vs. $0.32, fourth quarter EPS as lower gross profit offsets 11% revenue rise. License revenue was $18.3 million, compared to $24.3 million in the year-ago fourth quarter. Credit Suisse reportedly downgrades to neutral from outperform.
Mentor Graphics (MENT) posts $0.02 second quarter non-GAAP loss, vs. $0.15 EPS, on 13% revenue decline. Street was looking for $0.12 loss. Sees fiscal year 2009 non-GAAP EPS of $1.05-$1.10 (vs. Street's $1.01) on revenue growth of about 4%. Sees third quarter non-GAAP EPS of $0.15-$0.20.