Lehman Brothers (LEH) posts preliminary $5.92 third quarter loss per share, on net revenue of negative $2.9 billion. It reports gross mark-to-market adjustments of negative $7.8 billion (-$5.6 billion net). It will slash its annual dividend to $0.05. Lehman will spin off to shareholders $25-$30 billion of commercial real estate portfolio. It plans to sell majority interest in its investment management division. It says it is committed to exploring all strategic options. S&P Equity Research maintains hold (will update after the conference call).
Washington Mutual (WM) falls 0.98 to 2.32, S&P Equity Research says that WM shares are down roughly 20% so far today on the prospect of future losses and capital position. S&P believes WM will need to raise capital to offset losses it foresees for '08 and '09; it reiterates hold.
Fifth Third Bancorp (FITB) falls 1.08 to 14.85. Keefe Bruyette downgrades FITB and Comerica (CMA) to market perform from outperform, and downgrades Huntington Bancshares (HBAN), Synovus Financial (SNV), Marshall & Ilsley (MI), BB&T (BBT), SunTrust Banks (STI) and Bank of America (BAC) to underperform from market perform.
Research in Motion (RIMM) rises 5.31 to 104.61 after RIMM unveils the BlackBerry Pearl Flip 8220 smartphone, the first Blackberry phone to come in the popular flip-form design. Separately, RIMM announces availability of AOL's AIM and ICQ instant messaging services and AOL Mail on BlackBerry smartphones. Citigroup, Canaccord reiterate buy.
FedEx (FDX) sees first quarter EPS of $1.23, up from previous guidance of $0.80-$1.00. Reaffirms fiscal year 2009 EPS guidance of $4.75-$5.25, as weaker macroeconomic conditions offset better-than-expected first quarter results. Morgan Keegan ups estimates, maintains market perform.
ImClone Systems (IMCL) says it has had several conversations with CEO of a large pharmaceutical company, and as a result, the pharmaceutical co. has proposed to acquire IMCL for $70 per share. IMCL says it has informed Bristol-Myers Squibb (BMY) that IMCL's board has determined BMY's $60 per share cash offer to be inadequate.
GFI Group (GFIG) announces that it has terminated its discussions with Tullett Prebon plc regarding a possible business combination because the two companies failed to reach acceptable economic terms for a transaction. Citigroup reportedly downgrades to sell from hold.
Kraft Foods (KFT) raises quarterly dividend 7.4% to $0.29, as its top-line momentum is translating to bottom-line growth.
Texas Instruments (