Monday March 17, 12:33 PM
Movers: Bear Stearns, Lehman Brothers, WaMu, National City, Boeing
Bear Stearns (NYSE: BSC - news) (BSC) tumbles 20.60 to 36.40 after the company's CEO says, "amidst this market chatter, our liquidity position
in the last 24 hours had significantly deteriorated." BSC reaches pact with JP Morgan Chase & Co. (JPM) to provide a secured loan facility for initial period of up to 28 days allowing BSC to access liquidity as needed. BSC also says it is talking with JP Morgan regarding permanent financing or other alternatives. BSC can make no assurance that any strategic alternatives will be successfully completed. The Federal Reserve says it has unanimously approved new funding arrangement for BSC, says it will keep pumping liquidity into U.S. financial system. S&P downgrades BSC to sell.
Lehman Brothers (NYSE: LEH - news) (LEH), Merrill Lynch (NYSE: MER - news) (MER) and Goldman Sachs (NYSE: GS - news) (GS) are among Investment Banking related stocks lower after Bear Stearns says its liquidity position in the last 24 hours had significantly deteriorated and reaches agreement with JPMorgan Chase & Co. to provide secured loan facility for initial period of up to 28 days allowing BSC to access liquidity as needed.
Washington Mutual (NYSE: WM - news) (WM) falls after Moody's Investors Service downgrades the senior unsecured rating of WM to Baa3 from Baa2. Moody's places a negative outlook on all Washington Mutual entities.
National City (NCC (Stockholm: NCCB.ST - news) ) falls after Moody's Investors Service downgrades the ratings of NCC [senior to A3 from A2] and subsidiaries, incl. its lead bank National City Bank [financial strength to C+ from B- and deposits to A2 from the first quarter]. The ratings remain on review for possible downgrade.
Boeing (BA) may move after Morgan Stanley (SPU - news) reportedly upgrades to overweight from equal-weight.
Hitachi (HIT) cuts 10 billion yen fiscal year 2008 net income forecast to 70 billion yen loss. Notes lower operating income in Power & Industrial Systems, while Digital Media & Consumer Products Segment is expected to record a larger operating loss than previous forecast, expenses [primarily in flat-panel TV business], write down of deferred tax assets.
AnnTaylor Stores (ANN) posts $0.11 fourth quarter loss per share, vs. $0.31 EPS a year ago, on 3.2% same-store sales drop, 3.7% total sales rise [excluding extra week]. The retailer expects first quarter fiscal year of 2009 to be the most challenging of the year, from sales and margin perspective, sees $0.35-$0.40 first quarter EPS. It (Frankfurt: A0MLX5 - news) sees $1.80-$1.90 fiscal year 2009 EPS [both forecasts exclude one-time restructuring costs].
Aeropostale (ARO) posts $0.95, vs. $0.72 a year ago, fourth quarter GAAP EPS on 9.2% higher same-store sales, 17% higher total net sales. The retailer sees first quarter EPS of $0.20-$0.22, and fiscal year 2009 EPS growth of about 18%. Also announces that it will be developing a new concept that will build on ARO's core competencies, while targeting a younger demographic than the Aeropostale (NYSE: ARO - news) customer. S&P keeps hold.
Zumiez (ZUMZ) posts $0.42, vs. $0.39 a year ago, fourth quarter EPS on 4% higher same-store sales, 13% higher total net sales. Sets fiscal year 2009 EPS guidance of $0.90-$0.93 on flat to low-single digit increase in same-store sales. It expects to open about 57 stores in fiscal 2009.
Pacific Sunwear (NASDAQ: PSUN - news) of California (PSUN) posts $0.31, vs. $0.33 a year ago, fourth quarter non-GAAP EPS on 2.2% lower same-store sales, 7.8% lower total sales. It sees first quarter loss from continuing operations of $0.06-$0.08, and fiscal year 2009 of $0.73-$0.77
Steris (STE) announces $300 million stock buyback. Names Michael Tokich Sr. VP, CFO.
Exelixis (EXEL) says Genentech (DNA) has exercised its option to further develop, commercialize EXEL's compound XL518, a selective and potent inhibitor of MEK, which is currently in a phase 1 clinical trial. Notes selection of the compound, opt-in by DNA trigger a payment of $3.0 million; another $7 million is due when a phase 2 program is initiated by DNA.
Comtech Group (NASDAQ: COGO - news) (COGO) posts $0.22, vs. $0.16 a year ago, fourth quarter non-GAAP EPS on 46% revenue rise. Sees $0.90 2008 non-GAAP EPS on revenue of $285 million.
Seachange International (SEAC - news) (SEAC) posts $0.48 fourth quarter EPS, vs. $0.13 a year ago, on 19% revenue rise. Current quarter included a $12.6 million gain on the sale of SEAC's interest in FilmFlex Movies Limited, a U.K.-based joint venture that provides an exclusive VOD movie service to Virgin Media (NASDAQ: VMED - news) . Expects fiscal year 2009 year-over-year revenue growth, with second half revenues exceeding first half revenues, similar to what it experienced in fiscal year 2008. Projects profitability for the first half and all of fiscal year 2009.
IMAX Corp. (IMAX (IMAX - news) ) posts $0.25 fourth quarter loss per share, vs. $0.23 loss a year ago, on 11% revenue decline. Cites write-down of film-related inventories.
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