CNBC reports that Lehman Brothers (LEH) CEO Dick Fuld is "actively shopping" a sale of entire firm. Goldman downgrades Lehman shares to neutral from buy. Citigroup, Merrill also reportedly downgrade LEH. Yesterday LEH posted preliminary $5.92 third quarter loss on net revenue of negative $2.9 billion. It also reported gross mark-to-market adjustments of negative $7.8 billion and said it would slash its annual dividend to $0.05, spin off to shareholders $25-$30 billion of commercial real estate portfolio and sell majority interest in its investment management division. LEH noted that it was committed to exploring all strategic options. S&P maintains hold.
Merrill Lynch (MER) shares fall. S&P keeps hold, says it believes the stock is being pressured today by ongoing concerns about Lehman Brothers and renewed fears in the market that writedowns will continue at financial institutions.
Washington Mutual (WM) shares drop. S&P Equity Research reiterates hold, says shares down on what it believes are doubts about the company's viability.
Allergan (AGN) says it has completed a top-line analysis of its two Phase III clinical trials exploring the use of Botox (botulinum toxin type A) for treatment of headache in adults suffering from chronic migraine - i.e., headaches and/or migraines that occur on 15 or more days each month. Notes in the second Phase III study, the primary endpoint, key secondary endpoints showed statistically significant benefit of Botox treatment over placebo injections.
CSX (CSX) expects 2008 EPS to be in the range of $3.65 to $3.75, an increase from previous guidance that targeted the upper end of a $3.40-$3.60 range. Also, the company increases its 2008 capital spending to about $1.75 billion, expects free cash flow before dividends of about $1 billion a year. Cites the company's strong performance, diverse traffic base and positive outlook for rail and intermodal transportation.
New York Times Co. (NYT) gains after reporting in a 13G filing that Mexico's Carlos Slim and his family own a 6.4% stake in the company.
Kenexa (KNXA) cuts $0.38-$0.39 third quarter non-GAAP EPS forecast to $0.35-$0.36 on revenue of $54-$56 million, below previous view of $57-$59 million. It now sees 2008 EPS of $1.43-$1.46 on revenue of $213-$217 milion. Guidance for full-year 2008 includes one-time expense of $2.3 million, which will be recognized over course of the year, associated with opening of a new office location in India. Credit Suisse, Pacific Crest downgrade.
TicketMaster (TKTM) falls 3.06 to 15.71. Stifel Nicolaus says Live Nation's (LYV) deal with venue management firm SMG to provide ticketing services for SMG-operated venues represents another blow to the exclusive contract model operated by TKTM. Stifel reiterates hold on TKTM.
Lehman downgrades Nvidia (NVDA) to equalweight from overweight.
Campbell Soup (CPB) posts $0.26, vs. $0.14, fourth quarter adjusted EPS on 13% sales rise. For fiscal year 2009, expects its continuing operations, excluding negative impact of one less week in fiscal year, recent divestitures, to deliver sales growth in excess of its long-term target range of between 3%-4%. Consistent with its long-term target growth rate, expects to deliver EPS growth between 5%-7%.
Lululemon Athletica (LULU) posts $0.18, vs. $0.08 a year ago, second quarter EPS from continuing operations on 13% higher same-store sales, 48% higher total sales. Sees $0.68-$0.71 fiscla year 2009 EPS on $380-$385 million revenue, which based on anticipated same-store sales growth of high single digits and 35 planned new store openings. Sees long-term revenue growth of approximately 25%, EPS growth in excess of 25%.
St. Jude Medical (STJ) announces U.S. FDA clearance of its SJM Confirm implantable cardiac monitor.